Corporate governance and target price accuracy

Lee-Young Cheng, Yi-Chen Su, Zhipeng Yan and Yan Zhao

International Review of Financial Analysis, 2019, vol. 64, issue C, 93-101

Abstract: The purpose of this study is to examine whether the quality of corporate governance has an impact on target price accuracy. We explore the relationship between target price accuracy and ownership structure, board composition, and disclosure using a sample of 17,334 target price observations in the Taiwan Stock Exchange between 2007 and 2016. We find that strong corporate governance improves target price accuracy. We further show that firms with better corporate governance experience a stronger market reaction to their target price announcements.

Keywords: Corporate governance; Target price accuracy; Ownership structure; Board composition (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:64:y:2019:i:c:p:93-101

DOI: 10.1016/j.irfa.2019.05.005

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