Corporate Governance and Earnings Informativeness: Evidence from Iran

Mehdi Sarikhani, Mahdi Ebrahimi
2011 Social Science Research Network  
The purpose of this research is to study of the effect of corporate governance on earnings informativeness of companies listed on the Tehran Stock Exchange. The effect of variables of ownership concentration, management ownership, institutional ownership, corporate ownership, board composition, duality of the CEO and chairman roles and size of the board on the earnings response coefficient have been investigated. The sample consists of 70 companies between 2002 and 2008. The statistical model
more » ... ed for testing the suggested hypothesis in this research is 'panel data'. The results show that earnings informativeness has a positive and significant relationship with ownership concentration and institutional ownership. Also, no evidence was found indicative of the existence of a meaningful relationship between other variables of ownership structure and board structure and earnings informativeness. Furthermore, results show that there is no nonlinear relationship between management ownership and earnings informativeness.
doi:10.2139/ssrn.834124 fatcat:6ikb52msvjdhzijggm4mbcvxoq