Title
Ownership, two-tier board structure, and the informativeness of earnings : evidence from China
Document Type
Journal article
Source Publication
Journal of Accounting and Public Policy
Publication Date
7-1-2007
Volume
26
Issue
4
First Page
463
Last Page
496
Keywords
Corporate governance, Informativeness of earnings, Ownership
Abstract
This study extends previous research by empirically examining how ownership, two-tier board structure, and auditor affect the informativeness of earnings for companies listed in China. We measure the informativeness of earnings by the earnings-returns relation, discretionary accruals, and audit opinion. The results show that ownership concentration, the presence of foreign shareholders, the percentage of tradable shares, the type of dominant shareholder, the supervisory board, and independent directors affect the earnings response coefficients and discretionary accruals. We also find that the type of dominant shareholder, the size of the supervisory board, and the percentage of independent directors have an impact on the frequency of modified audit opinions. Our research has implications for China's regulators who are striving to improve accounting information, transparency, and corporate governance.
DOI
10.1016/j.jaccpubpol.2007.05.004
Print ISSN
02784254
E-ISSN
18732070
Publisher Statement
Copyright © 2007 Elsevier Inc
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Firth, M., Fung, P. M. Y., & Rui, O. M. (2007). Ownership, two-tier board structure, and the informativeness of earnings: Evidence from China. Journal of Accounting & Public Policy, 26(4), 463-496. doi: 10.1016/j.jaccpubpol.2007.05.004
