Ownership, corporate governance and timeliness of price discovery : Australian evidence

Liu, Wenxuan (2012) Ownership, corporate governance and timeliness of price discovery : Australian evidence. Masters by Research thesis, Queensland University of Technology.

Abstract

This study investigates whether and how a firm’s ownership and corporate governance affect its timeliness of price discovery, which is referred to as the speed of incorporation of value-relevant information into the stock price. Using a panel data of 1,138 Australian firm-year observations from 2001 to 2008, we predict and find a non-linear relationship between ownership concentration and the timeliness of price discovery. We test the identity of the largest shareholder and find that only firms with family as the largest shareholder exhibit faster price discovery. There is no evidence that suggests that the presence of a second largest shareholder affects the timeliness of price discovery materially. Although we find a positive association between corporate governance quality and the timeliness of price discovery, as expected, there is no interaction effect between the largest shareholding and corporate governance in relation to the timeliness of price discovery. Further tests show no evidence of severe endogeneity problems in our study.

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ID Code: 61068
Item Type: QUT Thesis (Masters by Research)
Supervisor: How, Janice & Verhoeven, Peter
Keywords: timeliness of price discovery, large shareholding, ownership structure, corporate governance, BB06: beekes and brown (2006)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Institution: Queensland University of Technology
Deposited On: 02 Jul 2013 04:33
Last Modified: 24 Jun 2017 14:43

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