Rights statement: Preprint of an article published in The International Journal of Accounting 2021 Vol. 56 (1) [10.1142/S1094406021500037] © World Scientific Publishing Company
Accepted author manuscript, 324 KB, PDF document
Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License
Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
}
TY - JOUR
T1 - Corporate governance and transparency in Japan
AU - Aman, Hiroyuki
AU - Beekes, Wendy
AU - Brown, Philip
N1 - Preprint of an article published in The International Journal of Accounting 2021 Vol. 56 (1) [10.1142/S1094406021500037] © World Scientific Publishing Company
PY - 2021/1/13
Y1 - 2021/1/13
N2 - Corporate governance (CG) reformists typically presume better-governed companies are more transparent to investors. We focus on CG and transparency in Japan, where CG has been an ongoing issue. Using local ratings of Japanese companies’ CG, and data on corporate disclosures and their associated stock returns, we do find better-governed Japanese companies have made more frequent and timelier disclosures, and that their share prices have reflected value-relevant information earlier. While these results hold for good news, they do not hold for bad. Consequently, governance guidance in Japan may not have resulted in both timelier and more balanced release of newsworthy information.
AB - Corporate governance (CG) reformists typically presume better-governed companies are more transparent to investors. We focus on CG and transparency in Japan, where CG has been an ongoing issue. Using local ratings of Japanese companies’ CG, and data on corporate disclosures and their associated stock returns, we do find better-governed Japanese companies have made more frequent and timelier disclosures, and that their share prices have reflected value-relevant information earlier. While these results hold for good news, they do not hold for bad. Consequently, governance guidance in Japan may not have resulted in both timelier and more balanced release of newsworthy information.
U2 - 10.1142/S1094406021500037
DO - 10.1142/S1094406021500037
M3 - Journal article
VL - 56
JO - The International Journal of Accounting
JF - The International Journal of Accounting
SN - 0020-7063
IS - 1
M1 - 2150003
ER -