Controlling Shareholders and Earnings Informativeness: Evidence from Taiwan

Jei-Fang Lew ； Shing-Jen Wu

《Asia Pacific Management Review》 預刊文章 Pp. 233-266

並列摘要

Taiwanese listed corporations, characterized by a high degree of separation between control rights and cash flow rights, are empirically studied in this research. This study investigates how the separation of cash flow rights from board seat control rights, as distinct from voting rights, affects the informativeness of earnings, as measured by the relationship between returns and earnings. This study extends the extant research by investigating the extent to which the level of disparity between these two rights affects the magnitude of earnings informativeness. Based on an empirical sample of Taiwanese listed corporations, the results indicate that earnings are generally less informative when there is a divergence between board seat control rights and cash flow rights.

並列關鍵字

Earnings informativeness ； ownership structure ； board seat control rights

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