Stock Price Informativeness, Analyst Coverage and Economic Growth: Evidence from Emerging Markets

2012 ◽  
Author(s):  
Fang-Chin Cheng ◽  
Ferdinand A. Gul ◽  
Bin Srinidhi
Keyword(s):  
Economic Growth ◽  
Emerging Markets ◽  
Stock Price ◽  
Price Informativeness ◽  
Analyst Coverage ◽  
Stock Price Informativeness

scholarly journals Does Chinese Financial Market Information Promote Listed Manufacturing Firms’ Productivity?

2019 ◽  
Vol 11 (2) ◽  
pp. 329
Author(s):  
Fujun Lai ◽  
Qian Wang ◽  
Qingxiang Feng
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Financial Market ◽  
Stock Price ◽  
Turnover Rate ◽  
Listed Companies ◽  
Market Information ◽  
Factor Productivity ◽  
Price Informativeness ◽  
Stock Price Informativeness

There have been many research studies that have examined the impact of financial development on economic growth, but few of them have explored this problem from the perspective of financial market information. In this paper, we investigate whether the stock price informativeness affect the listed firms’ sustainable growth by using the Chinese manufacturing listed companies’ data from 2007 to 2017. Specifically, we use the stock price nonsynchronicity and turnover rate to measure stock price informativeness, and the economic growth sustainability is proxied by the listed companies’ total factor productivity, which is the driving force of firms’ sustainable and steady growth. We find that higher stock price informativeness is associated with higher total factor productivity, no matter whether the stock price informativeness is proxied by the stock price nonsynchronicity or turnover rate. This finding is robust when we mitigate for endogeneity issues, and when we use the return on assets (ROA) as an alternative proxy for economic growth. Our results show that the stock price informativeness can significantly improve the total factor productivity of the listed companies, and play an important role in the sustainable development of listed manufacturing enterprises.

Stock Price Informativeness and Idiosyncratic Return Volatility in Emerging Markets: Evidence from China

2014 ◽  
Vol 17 (04) ◽  
pp. 1450025 ◽  
Author(s):  
Karen Jingrong Lin ◽  
Khondkar Karim ◽  
Clairmont Carter
Keyword(s):  
Emerging Markets ◽  
Stock Price ◽  
Information Measure ◽  
Return Volatility ◽  
Price Informativeness ◽  
Research Questions ◽  
Stock Price Informativeness

This study attempts to address two research questions on the idiosyncratic return volatility and stock price informativeness. First, whether idiosyncratic return volatility is a valid proxy for stock price informativeness in emerging markets, and if it is, whether there exists a monotonic relationship between the idiosyncratic return volatility and stock price informativeness throughout the whole sample. We find that the idiosyncratic return volatility reflects the stock price informativeness in China. However, such a relationship does not exist in a monotonic fashion. These results indicate that idiosyncratic return volatility serves as an information measure, but must be used with caution.

Stock price informativeness and analyst coverage

2013 ◽  
Vol 30 (3) ◽  
pp. 173-188 ◽  
Author(s):  
Ahmed Marhfor ◽  
Bouchra M'Zali ◽  
Jean-Claude Cosset ◽  
Guy Charest
Keyword(s):  
Stock Price ◽  
Price Informativeness ◽  
Analyst Coverage ◽  
Stock Price Informativeness

scholarly journals Effects of Financial Market Information on Firms’ Productivity Under Operating Pressure and Financial Constraints: Evidence From the Chinese Stock Market

SAGE Open ◽  
2021 ◽  
Vol 11 (4) ◽  
pp. 215824402110613
Author(s):  
Fujun Lai ◽  
Sha Zhu ◽  
Qingxiang Feng ◽  
Yi Yao
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Financial Market ◽  
Stock Price ◽  
Financial Constraints ◽  
Operating Pressure ◽  
Market Information ◽  
Factor Productivity ◽  
Price Informativeness ◽  
Stock Price Informativeness

Many studies have examined the impact of economic fundamentals on the financial market, but few have explored how financial market information affects the real economy. In this paper, we examine the effects of stock price informativeness on firms’ total factor productivity (TFP) using panel data of Chinese listed manufacturing firms over the period 2007 to 2017. Specifically, we use stock price nonsynchronicity to measure stock price informativeness, and real economic activity efficiency is proxied by the listed firms’ total factor productivity estimated by the LP and ACF methods. We find that stock price informativeness is positively associated with firms’ productivity in China. More importantly, we propose two possible mechanisms to intensify the consequences of stock price informativeness and find that operating pressure and financial constraints can positively intensify the relationship between stock price informativeness and firms’ TFP. As financial information is crucial for sustainable and steady economic growth, our research not only helps to reveal how the financial market promotes economic growth but also helps to provide new ideas for managers and policy-makers to alleviate operating pressure and financing constraints.

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