This paper provides an empirical investigation of the relationship between management ownership and information content of earnings and cash flows, in equity valuation. The study is based within a Polish emerging capital market, where the disclosure law is tailored to international standards but where ownership and control issues are still underdeveloped. The results demonstrate a connection between the level of managerial ownership and earnings with a view to determining stock returns. In contrast, an association of different levels of managerial ownership and cash flows is not supported by this investigation. Our evidence is consistent with the view that managers with no or with low voting power intend to build their good reputation and fulfil a duty of loyalty. However, when managers have significant voting power the entrenchment effect and information asymmetry appears. Furthermore, the findings of this study demonstrate superiority of earnings over cash flows in explaining stock returns.