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.


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.

Impact and interest:

Search Google Scholar™

Citation counts are sourced monthly from Scopus and Web of Science® citation databases.

These databases contain citations from different subsets of available publications and different time periods and thus the citation count from each is usually different. Some works are not in either database and no count is displayed. Scopus includes citations from articles published in 1996 onwards, and Web of Science® generally from 1980 onwards.

Citations counts from the Google Scholar™ indexing service can be viewed at the linked Google Scholar™ search.

Full-text downloads:

470 since deposited on 02 Jul 2013
90 in the past twelve months

Full-text downloads displays the total number of times this work’s files (e.g., a PDF) have been downloaded from QUT ePrints as well as the number of downloads in the previous 365 days. The count includes downloads for all files if a work has more than one.

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

Export: EndNote | Dublin Core | BibTeX

Repository Staff Only: item control page