Corporate governance, market conditions and investors' reaction to information signals

• Published in: Australian journal of management Vol. 48; no. 1; pp. 38 - 66
• Main Authors: Almaskati, Nawaf, Bird, Ron, Yeung, Danny, Lu, Yue
• Format: Journal Article
• Language: English
• Published: Kensington, NSW SAGE Publications 01.02.2023; Sage Publications Ltd
• Subjects: Corporate governance; Earnings management; Information measurement; Information services; Quality control; Uncertainty (Information theory); information uncertainty; sentiment; Corporate governance; post-earnings announcement drift; uncertainty; information signals

We examine and compare the extent to which the reaction of investors to earnings announcements is influenced by a firm's governance profile and prevailing market conditions. We find that firms with better governance characteristics experience a larger initial reaction to both good and bad earni...