Corporate Transparency and the Impact of Investor Sentiment on Stock Prices

被引:105
作者
Firth, Michael [1 ]
Wang, Kailong [2 ]
Wong, Sonia M. L. [1 ]
机构
[1] Lingnan Univ, Dept Finance & Insurance, Tuen Mun, Hong Kong, Peoples R China
[2] Michigan State Univ, Eli Broad Coll Business, E Lansing, MI 48824 USA
关键词
investor sentiment; stock prices; corporate transparency; China; emerging markets; EARNINGS MANAGEMENT; CROSS-SECTION; ASSET PRICES; MARKET; CHINA; RETURNS; BEHAVIOR; PARTY; GOVERNANCE; ALLOCATION;
D O I
10.1287/mnsc.2014.1911
中图分类号
C93 [管理学];
学科分类号
12 ; 1201 ; 1202 ; 120202 ;
摘要
Using China's stock market as the testing venue, this study examines how corporate transparency helps explain the sensitivity of stock prices to general investor sentiment. We find that firms with low corporate transparency, measured by a battery of proxies including state ownership, the prevalence of related party transactions, accrual-based earnings management, audit opinions, and the quality of audit firms, are more affected by investor sentiment than are firms with high corporate transparency. Overall, our findings highlight the importance of corporate transparency in mitigating the effects of investor sentiment on stock prices.
引用
收藏
页码:1630 / 1647
页数:18
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