Product Market Power, Corporate Governance and the Information Content of Stock Price

Based on the data of companies listed on A-share market from the year 2001 to 2009, this paper measures product market power and the information content of stock price by using an event study method. Then I explore the relationship between product market power, corporate governance and the information content of stock price. The results show that product market power and rational corporate governance can improve the information content of stock price. However, when improving the information content of stock price, the relationship between product market power and corporate governance can be substitutive or complementary. And also it is necessary that reform of product market should take the development of capital market into account