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    Rights statement: This is the peer reviewed version of the following article: Beekes, W., Brown, P., Zhan, W. and Zhang, Q. (2016), Corporate Governance, Companies’ Disclosure Practices and Market Transparency: A Cross Country Study. Journal of Business Finance & Accounting, 43: 263–297. doi: 10.1111/jbfa.12174 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/jbfa.12174/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

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Corporate governance, companies’ disclosure practices, and market transparency: a cross country study

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Corporate governance, companies’ disclosure practices, and market transparency : a cross country study. / Beekes, Wendy Anne; Brown, Philip Ronald; Zhan, Wenwen; Zhang, Qiyu.

In: Journal of Business Finance and Accounting, Vol. 43, No. 3-4, 03.2016, p. 263-297.

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@article{267a98b5cc9f4f4e9615fbb7a5a5877c,
title = "Corporate governance, companies’ disclosure practices, and market transparency: a cross country study",
abstract = "We examine the link between corporate governance, companies’ disclosure practices and their equity market transparency in a study of more than 5,000 listed companies in 23 countries covering the period 1 January 2003 to 31 December 2008. Our results confirm the belief that better-governed firms make more frequent disclosures to the market. We also find greater disclosure in common law relative to code law countries. However firms with better governance in both code and common law countries make more frequent disclosures. We measure market transparency by the timeliness of prices. In contrast to single country studies, results show, for the 23 countries collectively, better corporate governance is associated with less timely share prices. This would suggest that a firm substitutes better corporate governance for transparency. We are thus led to the conclusion that even if information is disclosed more frequently by better-governed firms, it does not necessarily follow that information is reflected in share prices on a timelier basis.",
keywords = "Corporate Governance, Disclosure Practices, Market Transparency, Legal Origin, Timeliness of Price Discovery",
author = "Beekes, {Wendy Anne} and Brown, {Philip Ronald} and Wenwen Zhan and Qiyu Zhang",
note = "This is the peer reviewed version of the following article: BBeekes, W., Brown, P., Zhan, W. and Zhang, Q. (2016), Corporate Governance, Companies’ Disclosure Practices and Market Transparency: A Cross Country Study. Journal of Business Finance & Accounting, 43: 263–297. doi: 10.1111/jbfa.12174 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/jbfa.12174/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.",
year = "2016",
month = "3",
doi = "10.1111/jbfa.12174",
language = "English",
volume = "43",
pages = "263--297",
journal = "Journal of Business Finance and Accounting",
issn = "0306-686X",
publisher = "Wiley-Blackwell",
number = "3-4",

}

RIS

TY - JOUR

T1 - Corporate governance, companies’ disclosure practices, and market transparency

T2 - a cross country study

AU - Beekes, Wendy Anne

AU - Brown, Philip Ronald

AU - Zhan, Wenwen

AU - Zhang, Qiyu

N1 - This is the peer reviewed version of the following article: BBeekes, W., Brown, P., Zhan, W. and Zhang, Q. (2016), Corporate Governance, Companies’ Disclosure Practices and Market Transparency: A Cross Country Study. Journal of Business Finance & Accounting, 43: 263–297. doi: 10.1111/jbfa.12174 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/jbfa.12174/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

PY - 2016/3

Y1 - 2016/3

N2 - We examine the link between corporate governance, companies’ disclosure practices and their equity market transparency in a study of more than 5,000 listed companies in 23 countries covering the period 1 January 2003 to 31 December 2008. Our results confirm the belief that better-governed firms make more frequent disclosures to the market. We also find greater disclosure in common law relative to code law countries. However firms with better governance in both code and common law countries make more frequent disclosures. We measure market transparency by the timeliness of prices. In contrast to single country studies, results show, for the 23 countries collectively, better corporate governance is associated with less timely share prices. This would suggest that a firm substitutes better corporate governance for transparency. We are thus led to the conclusion that even if information is disclosed more frequently by better-governed firms, it does not necessarily follow that information is reflected in share prices on a timelier basis.

AB - We examine the link between corporate governance, companies’ disclosure practices and their equity market transparency in a study of more than 5,000 listed companies in 23 countries covering the period 1 January 2003 to 31 December 2008. Our results confirm the belief that better-governed firms make more frequent disclosures to the market. We also find greater disclosure in common law relative to code law countries. However firms with better governance in both code and common law countries make more frequent disclosures. We measure market transparency by the timeliness of prices. In contrast to single country studies, results show, for the 23 countries collectively, better corporate governance is associated with less timely share prices. This would suggest that a firm substitutes better corporate governance for transparency. We are thus led to the conclusion that even if information is disclosed more frequently by better-governed firms, it does not necessarily follow that information is reflected in share prices on a timelier basis.

KW - Corporate Governance

KW - Disclosure Practices

KW - Market Transparency

KW - Legal Origin

KW - Timeliness of Price Discovery

U2 - 10.1111/jbfa.12174

DO - 10.1111/jbfa.12174

M3 - Journal article

VL - 43

SP - 263

EP - 297

JO - Journal of Business Finance and Accounting

JF - Journal of Business Finance and Accounting

SN - 0306-686X

IS - 3-4

ER -