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 language | English |
|---|---|
| Pages (from-to) | 885-919 |
| Number of pages | 35 |
| Journal | Accounting and Finance |
| Volume | 54 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - 1 Jan 2014 |
Keywords
- Analyst following
- Institutions
- Ownership structure
- Stock price informativeness
ASJC Scopus subject areas
- Accounting
- Finance
- Economics, Econometrics and Finance (miscellaneous)