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Board Gender Diversity, Earnings Quality and Stock Price Informativeness

DOI: 10.4236/ajibm.2018.82018, PP. 306-312

Keywords: Stock Price Informativeness, Idiosyncratic Volatility, Board Gender Diversity, Earnings Quality

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Abstract:

Further recognition of women’s social value and the gradual improvement of women’s economic status have made the proportion of female independent directors on board rise year by year, which has received high attention from academia. Using data of A-share listed companies in Shanghai and Shenzhen stock markets form 2000-2014 in China, this paper investigates the relation among gender diversity, earnings quality and stock price informativeness. As a result, the larger the proportion of female independent directors is, the more firm-specific information the stock price contains. In the meantime, earnings quality of listed companies significantly impact on stock price informativeness, which means that stock prices of companies with higher earnings quality contain more firm-specific information while having other factors controlled. Further studies show that the relation between board gender diversity and stock price informativeness is not simply direct; board gender diversity could raise the stock price informativeness through enhancing earnings quality.

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