Research on the Relationship between Corporate Governance and Information Environment in China

Abstract

Relationship between corporate governance and information environment was explored by this paper, by using the samples of Chinese firms from Shanghai Stock Exchange over the period of 2004-2014. Three indicators have been used to proxy the information environment, which were: analyst following, analyst forecast accuracy, analyst forecast dispersion. Ultimately, the result of this investigation suggests that the better corporate governance result in the larger analyst following and greater forecast accuracy. The better governed firms tend to be associated with the lower forecast dispersion