Economics of Governance

, Volume 8, Issue 2, pp 129–152

The Effects of Corporate Governance on the Informativeness of Earnings

Original Paper

DOI: 10.1007/s10101-006-0018-8

Cite this article as:
Petra, S.T. Economics of Governance (2007) 8: 129. doi:10.1007/s10101-006-0018-8


This study draws upon prior research on corporate governance and examines whether the informativeness of earnings, proxied by the earnings response coefficient varies with the percentage of outside independent directors serving on the board, the absence of CEO duality, and the presence of independent audit (AUDC), compensation (COMC), and nominating (NOMC) committees. The results suggest a positive association between the proportion of outside independent directors serving on firm’s boards and earnings informativeness. However, the results do not suggest an association between non-CEO duality, or independent AUDC, COMC, and NOMC and earnings informativeness.


Corporate governance G300Earnings informativeness G140Board of directors G390

Copyright information

© Springer-Verlag 2006

Authors and Affiliations

  1. 1.Frank G. Zarb School of BusinessHofstra UniversityHempsteadUSA