Perks and the informativeness of stock prices in the Chinese market
By Ferdinand A. Gul, Louis T. W. Cheng, T. Leung. 2011
152 citations recorded by the source corpus.
While the literature shows that perks can affect firm values positively or negatively, we argue that firms with higher perks are more likely to be associated with a lower quality of financial reporting, which, in turn, can affect the informativeness of stock prices. Based on hand-collected data on perks from Chinese listed firms, we find that firms with lower perks are associated with higher informativeness of stock prices (or lower R-square). Moreover, the positive association between perks and R-square is shown to be weaker for firms with higher financial reporting quality through audit and earnings quality measures.
Subfields: Accounting, Finance
View Paper: https://www.semanticscholar.org/paper/96cbf6294c39d1b0f4f9cbd0ff6f9b32b3acdc31
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Citations in the corpus
- Executive Compensation and Corporate Fraud in China (2014, unknown): “A limited number of studies have used voluntarily disclosed perk-related expense information such as business travel expenses, business entertainment expenses, company car expenses, and meeting expenses to estimate the value of executive perks (Gul et al. 2011).”
- Political uncertainty and cash holdings: Evidence from China (2016, background): “Regarding auditor quality, if a firm is audited by a Big 4 international accounting firm, we consider it to have fewer agency conflicts (Gul et al., 2010, 2011).”