This thesis examines whether compliance with the UK Stewardship Code (the Code) by institutional investors influences their investee companies’ earnings quality. The Code sets out the principles of effective stewardship for UK institutional investors, and aims to encourage them to better exercise governance responsibilities toward investee companies. This thesis tests whether Code compliance strengthens the relation between investment duration and size and earnings quality. The findings show no significant evidence indicating that Code compliance enhances investee companies’ earnings quality. The study also presents content analysis of compliance disclosure and an index is developed of Code compliance quality. Subsequent analysis allowing for variation in Code compliance quality still fails to indicate any significant relation with reported earnings quality.

Year Manuscript Completed



Corporate Finance | Finance and Financial Management


Institutional investors; Stockholder wealth; Corporations Valuation; Stocks Prices; Price-earnings ratio.

Primary Language of Manuscript


01Front.pdf (201 kB)