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Press freedom, externally-generated transparency, and stock price informativeness: International evidence

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  • Kim, Jeong-Bon
  • Zhang, Hao
  • Li, Liuchuang
  • Tian, Gaoliang

Abstract

This paper examines the impact of press freedom on stock price informativeness in a sample of firms from 50 countries. We find a significant relation between more press freedom and lower stock price synchronicity. Our results suggest that the freedom of the press can enhance the information environment of stock markets.

Suggested Citation

  • Kim, Jeong-Bon & Zhang, Hao & Li, Liuchuang & Tian, Gaoliang, 2014. "Press freedom, externally-generated transparency, and stock price informativeness: International evidence," Journal of Banking & Finance, Elsevier, vol. 46(C), pages 299-310.
    • Handle: RePEc:eee:jbfina:v:46:y:2014:i:c:p:299-310
    DOI: 10.1016/j.jbankfin.2014.05.023
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    More about this item

    Keywords

    Press freedom; Stock price informativeness; Market efficiency;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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