Investor Protection Environment, Accounting Information Comparability and Stock Price Informativeness

Abstract

Abstract:

This study examines the impact of accounting information comparability on stock price informativeness in China and further investigates the moderating effect of investor protection in the relationship between accounting information comparability and stock price informativeness. Using 14597 firm-year observations from A-share firms listed in Shanghai and Shenzhen Stock Exchanges as the samples, the study finds that accounting information comparability can significantly improve the information content of stock price for Chinese listed firms, and this significantly positive effect becomes even stronger when the firm is under weak investor protection environment. The above findings suggest that accounting information comparability has important effect on the efficiency of China's capital market and there is an alternative relationship between accounting information comparability and investor protection.

Key words: accounting information comparability, stock price informativeness, investor protection environment, corporate governance, accounting information quality

Yuan Yuan, Tian Gaoliang, Liao Mingqing. Investor Protection Environment, Accounting Information Comparability and Stock Price Informativeness[J]. , 2019, 31(1): 206-220.

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