Corporate Finance - information asymmetry

“A higher degree of information asymmetry generally tends to encourage greater use of debt financing relative to equity financing.”

Why is this statement true? I would think that higher information asymmetry will lead to equity financing because managers don’t have to worry about paying back interest so the public can’t keep an eye on them as much.

I’m assuming possibly because the cost of equity would be greater with information asymmetry, so they reside to debt financing…?

You are correct Mosstastic