Ownership, Board Structure, and the Informativeness of Earnings - Evidence from an Emerging Market

Abstract

This study extends previous research by empirically examining how ownership and board structure affect the informativeness of earnings for companies listed in China. We proxy informativeness of earnings by the earnings-returns relationship and discretionary accruals. The results show that different ownership (government, legal entity, and foreign) and board structures affect the informativeness of accounting earnings. Our research has implications for China's regulators who are striving to improve accounting information, transparency, and corporate governance.

Keywords: Informativeness of Earnings, Corporate Governance

JEL Classification: G34, J63, L14