The influence of ownership structure, analyst following and institutional infrastructure on stock price informativeness : International evidence

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

9 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)885-919
Journal / PublicationAccounting and Finance
Volume54
Issue number3
Online published6 Jun 2013
Publication statusPublished - Sep 2014

Abstract

Using firms from 20 non-US countries, we investigate whether and how ownership structure, analyst following and country-level institutions influence stock price informativeness (SPI). We find that stock price informativeness decreases with control-ownership wedge (the detachment of voting rights from cash flows rights), and this SPI-reducing effect of the wedge is attenuated for firms with high analyst following and in countries with strong country-level institutions. We also find that stock price informativeness decreases with analyst following, but this SPI-reducing effect of analyst following is attenuated in countries with strong country-level institutions.

Research Area(s)

  • Analyst following, Institutions, Ownership structure, Stock price informativeness