Corporate governance and the value-relevance of accounting information: Evidence from Australia

Purpose – This paper seeks to examine the relationship between corporate governance and the value-relevance of accounting information in Australia.

Design/methodology/approach – This paper uses board, audit committee and external audit related variables to proxy for corporate governance. Value-relevance is measured by the adjusted R2 derived from a regression of stock price on earnings and equity book values following Ohlosn's accounting-based valuation framework.

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