Regional institutions, financial analysts and stock price informativeness

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Regional institutions, financial analysts and stock price informativeness. / Ding, Rong; Hou, Wenxuan; Kuo, Jing-Ming; Lee, Edward.

In: Regional Studies, 05.10.2017.

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@article{91a0a53dbb104fc49e1e1f32646525a6,
title = "Regional institutions, financial analysts and stock price informativeness",
abstract = "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.",
keywords = "Analyst, China, legal institutions, stock informativeness",
author = "Rong Ding and Wenxuan Hou and Jing-Ming Kuo and Edward Lee",
year = "2017",
month = oct,
day = "5",
doi = "10.1080/00343404.2017.1372567",
language = "English",
journal = "Regional Studies",
issn = "0034-3404",
publisher = "Routledge",

}

RIS

TY - JOUR

T1 - Regional institutions, financial analysts and stock price informativeness

AU - Ding, Rong

AU - Hou, Wenxuan

AU - Kuo, Jing-Ming

AU - Lee, Edward

PY - 2017/10/5

Y1 - 2017/10/5

N2 - 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.

AB - 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.

KW - Analyst

KW - China

KW - legal institutions

KW - stock informativeness

U2 - 10.1080/00343404.2017.1372567

DO - 10.1080/00343404.2017.1372567

M3 - Article

JO - Regional Studies

JF - Regional Studies

SN - 0034-3404

ER -