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Perks and the informativeness of stock prices in the Chinese market
journal contribution
posted on 2011-12-01, 00:00 authored by Ferdinand GulFerdinand Gul, L T W Cheng, T Y LeungWhile the literature shows that perks can affect firm values positively or negatively, we argue that firms with higher perks are more likely to be associated with a lower quality of financial reporting, which, in turn, can affect the informativeness of stock prices. Based on hand-collected data on perks from Chinese listed firms, we find that firms with lower perks are associated with higher informativeness of stock prices (or lower R-square). Moreover, the positive association between perks and R-square is shown to be weaker for firms with higher financial reporting quality through audit and earnings quality measures.
History
Journal
Journal of corporate financeVolume
17Issue
5Pagination
1410 - 1429Publisher
ElsevierLocation
Amsterdam, The NetherlandsPublisher DOI
ISSN
0929-1199eISSN
1872-6313Language
engPublication classification
C1.1 Refereed article in a scholarly journal; C Journal articleCopyright notice
2011, ElsevierUsage metrics
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