3.2.4 Firm-specific characteristics
Firm specific characteristics include firm size, MTB ‘growth ratio’, ROA, credit rating,
profitability, and loss. For example, firms with debt are characterized by fewer growth
opportunities as implied by the pecking order theory (Bharath et al. 2008). Brown and
Hillegeist (2007) find the effect of disclosure quality on information asymmetry varies
across firms, industries and even within firms (quarterly versus annual reports)