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The impact of corporate governance on the information content of earnings and cash flows: Evidence from Brazil

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  • Miranda-Lopez, Jose
  • Tama-Sweet, Isho

Abstract

We use the unique capital market structure that Brazil established in 2000 to investigate how different governance listing segments impact the relative and incremental information content of earnings and cash flows. Brazilian firms are classified into different listing segments on the stock market depending of their voluntary compliance with corporate governance regulations. We find that earnings provide greater relative information in the market as a whole, and this result is driven by the segments with enhanced governance regulations. For the market as a whole and for the enhanced governance segments, both earnings and cash flows provide incremental information.

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  • Miranda-Lopez, Jose & Tama-Sweet, Isho, 2024. "The impact of corporate governance on the information content of earnings and cash flows: Evidence from Brazil," International Review of Financial Analysis, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:finana:v:93:y:2024:i:c:s1057521924001017
    DOI: 10.1016/j.irfa.2024.103169
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    Cited by:

    1. Qiu, Jiayu & Deng, Xinxia & Liang, Rui, 2024. "Can the enterprise intelligent transformation promote accounting information transparency? Pressure from media attention," Finance Research Letters, Elsevier, vol. 66(C).

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    More about this item

    Keywords

    Information content; Corporate governance; Cash flows; Earnings; Brazil;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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