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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