Regional institutions, financial analysts and stock price informativeness

Research output: Contribution to journalArticlepeer-review

  • Authors:
  • Rong Ding
  • Wenxuan Hou
  • Jing Ming Kuo
  • Edward Lee


This paper investigates the impact of legal institutions on the external governance role of equity analysts in enhancing the corporate information environment. By analysing a sample of Chinese listed firms between 2003 and 2013, we find that analyst coverage is positively related to stock price informativeness. Firms located in provinces where legal institutions are stronger, as indicated by better development of market intermediaries and lower levies and charges on firms, are less likely to withhold value-relevant information. Financial analysts play a more effective role in improving stock informativeness in provinces with less developed legal institutions.

Bibliographical metadata

Original languageEnglish
Pages (from-to)1-10
Number of pages10
JournalRegional Studies
Early online date5 Oct 2017
Publication statusPublished - 2017