Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity: Evidence from China

• 成果类型: Article
• 署名作者: Gul, Ferdinand A.; Kim, Jeong-Bon; Qiu, Annie A.
• 署名单位: City University of Hong Kong; Hong Kong Polytechnic University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2009.11.005
• 发表日期: 2010
• 页码: 425-442
• 关键词: Ownership concentration; State ownership; foreign ownership; Audit quality; Stock price synchronicity; CHINA

摘要

This paper investigates the effects of largest-shareholder ownership concentration, foreign ownership, and audit quality on the amount of firm-specific information incorporated into share prices, as measured by stock price synchronicity, of Chinese-listed firms over the 1996-2003 period. We show that synchronicity is a concave function of ownership by the largest shareholder with its maximum at an approximate 50% level. Further, we find that synchronicity is higher when the largest shareholder is government related. We also find that foreign ownership and auditor quality are inversely associated with synchronicity. Finally, we show that the amount of earnings information reflected in stock returns is lower for firms with high synchronicity. (C) 2009 Elsevier B.V. All rights reserved.