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

Li Jiang, Jeong Bon Kim, Lei PANG

    Research output: Contribution to journalJournal articlepeer-review

    12 Citations (Scopus)

    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.

    Original languageEnglish
    Pages (from-to)885-919
    Number of pages35
    JournalAccounting and Finance
    Volume54
    Issue number3
    DOIs
    Publication statusPublished - 1 Sept 2014

    Scopus Subject Areas

    • Accounting
    • Finance
    • Economics, Econometrics and Finance (miscellaneous)

    User-Defined Keywords

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

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