Corporate Governance and the Information Content of Earnings Announcements: A Cross-Country Analysis

• 成果类型: Article
• 署名作者: Lau, Sie Ting; Shrestha, Keshab; Yu, Jing
• 署名单位: Nanyang Technological University; Monash University; Monash University Malaysia; University of Western Australia
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12211
• 发表日期: 2016
• 页码: 1238-1266
• 关键词: investor protection; board characteristics; ACCOUNTING EARNINGS; empirical-analysis; Audit committee; management; FIRMS; CONSEQUENCES; environment; OWNERSHIP

摘要

Using firm-level data from 23 developed markets, we document a positive association between overall firm-level governance quality and the informativeness of earnings announcements measured by abnormal stock return variance. This finding is robust after controlling for the potential endogeneity of firm-level corporate governance. Further analyses reveal that firms with strong governance show little evidence of earnings management, appoint Big 4 auditing firms, and attract analyst following, implying a positive link between strong corporate governance and the information quality of earnings announcements. Finally, there is some evidence that the relation between firm-level governance and market reactions around the announcements exists only in countries characterized by a transparent information environment and strong legal investor protection.