The influence of the ownership structure over the informativeness of the accounting earnings disclosed by companies traded on the Bovespa stock market
Abstract
This study examines the effects of the ownership structure over the informativeness of the accounting earnings that are disclosed by companies traded on the Brazilian stock market. Informativeness is about measuring how intense is the relation between accounting earnings and stock prices considering the angular coefficient of the probable straight line between these two variables. The investigation focuses on the specific influence of two ownership structure characteristics, viz. the concentration of voting rights and the divergence between the rights of shares (vote versus cash flow), on the informativeness of the accounting earnings. The relation between the informativeness of the accounting earnings and the concentration of votes and the divergence among rights was based on the entrenchment and alignment effects. The sample used in the research was made up of non-financial companies listed at the São Paulo Stock Exchange (Bovespa) from 2000 to 2006. The results show that the concentration of the voting rights has a negative influence on the accounting earnings informativeness. As to the divergence between rights, the negative influence over that informativeness is seen only when there is an excess of votes. The most negative impact on the informativeness is observed when a combination between the concentration of votes and the divergence between rights occurs.
Key words: informativeness, ownership structure, concentration of voting rights, divergence between the rights of shares.Downloads
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