Regional institutions, financial analysts and stock price informativeness

Research output: Contribution to journalArticlepeer-review


External organisations

  • Warwick University
  • University of Manchester


This paper investigates the impact of legal institutions on the external governance role of equity analysts in enhancing the corporate information environment. By analysing a sample of Chinese listed firms between 2003 and 2013, we find that analyst coverage is positively related to stock price informativeness. Firms located in provinces where legal institutions are stronger, as indicated by better development of market intermediaries and lower levies and charges on firms, are less likely to withhold value-relevant information. Financial analysts play a more effective role in improving stock informativeness in provinces with less developed legal institutions.


Original languageEnglish
Number of pages10
JournalRegional Studies
Early online date5 Oct 2017
Publication statusE-pub ahead of print - 5 Oct 2017


  • Analyst, China, legal institutions, stock informativeness