DOES STOCK PRICE SYNCHRONICITY EFFECT INFORMATION CONTENT OF REPORTED EARNINGS? EVIDENCE FROM THE MENA REGION

Risk Governance & Control: Financial Markets & Institutions

关键词: Stock Price Synchronicity;    Earnings Informativeness;    Corporate Governance;    Emerging Markets;   

DOI  :  10.22495/rcgv6i3c1art5

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

This paper documents the effect of stock price synchronicity on the value relevance of reported earnings in the MENA region during the period between 2009 and 2013. Our results show that the information content of reported earnings increases with increase in stock price synchronicity. We document higher impact of earnings on returns for firms with higher stock price synchronicity. We argue that firms with high synchronicity have better information environment. As a result, these firms disclose information that is of high quality. We also show that information conveyed through stock price synchronicity is more important than information conveyed through traditional governance mechanisms.

【 授权许可】

CC BY-NC