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

Jose Miranda-Lopez, Isho Tama-Sweet

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish
Article number103169
JournalInternational Review of Financial Analysis
Volume93
DOIs
StatePublished - May 2024

Keywords

  • Brazil
  • Cash flows
  • Corporate governance
  • Earnings
  • Information content

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