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: Journal article publicationJournal articleAcademic researchpeer-review

7 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 Jan 2014

Keywords

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

ASJC Scopus subject areas

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

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