Regional institutions, financial analysts and stock price informativeness

Rong Ding; Wenxuan Hou; Jing-Ming Kuo; Edward Lee

doi:10.1080/00343404.2017.1372567

Regional institutions, financial analysts and stock price informativeness

Rong Ding, Wenxuan Hou, Jing-Ming Kuo, Edward Lee

Finance

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

277 Downloads (Pure)

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.

Original language	English
Number of pages	10
Journal	Regional Studies
Early online date	5 Oct 2017
DOIs	https://doi.org/10.1080/00343404.2017.1372567
Publication status	E-pub ahead of print - 5 Oct 2017

Keywords

Analyst
China
legal institutions
stock informativeness

Access to Document

10.1080/00343404.2017.1372567

Regional studies_ accepted
This is the peer reviewed version of the following article: Ding, R., Hou, W., Kuo, J.M. and Lee, E., 2017. Regional institutions, financial analysts and stock price informativeness. Regional Studies, which has been published in final form at: http://dx.doi.org/10.1080/00343404.2017.1372567. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving
Accepted author manuscript, 1.48 MBLicence: None: All rights reserved

Cite this

@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",

}

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

SN - 0034-3404

JO - Regional Studies

JF - Regional Studies

ER -

Regional institutions, financial analysts and stock price informativeness

Abstract

Keywords

Access to Document

Fingerprint

Cite this