Research output: Working paper
Do better governed firms make more informative disclosures? Canadian evidence. / Beekes, W A; Brown, P; Chin, G.
Lancaster University : The Department of Accounting and Finance, 2006. (Accounting and Finance Working Paper Series).Research output: Working paper
}
TY - UNPB
T1 - Do better governed firms make more informative disclosures? Canadian evidence
AU - Beekes, W A
AU - Brown, P
AU - Chin, G
PY - 2006
Y1 - 2006
N2 - Using a Canadian sample, we address Beekes and Brown’s (2005) external validity concerns by replicating their result that corporate governance influences the timeliness and informativeness of corporate disclosures. Based largely on their approach, we find Canadian firms with better governance structures release more documents to the share market, and share prices integrate information more rapidly. These firms also attract a larger following of analysts, who make forecasts that are less biased. However, three other predictions concerning analyst forecasts are not borne out. We interpret our results as, on the whole, confirming the Beekes and Brown conclusion that corporate governance standards can play a significant role in determining the efficiency of a country’s equity market.
AB - Using a Canadian sample, we address Beekes and Brown’s (2005) external validity concerns by replicating their result that corporate governance influences the timeliness and informativeness of corporate disclosures. Based largely on their approach, we find Canadian firms with better governance structures release more documents to the share market, and share prices integrate information more rapidly. These firms also attract a larger following of analysts, who make forecasts that are less biased. However, three other predictions concerning analyst forecasts are not borne out. We interpret our results as, on the whole, confirming the Beekes and Brown conclusion that corporate governance standards can play a significant role in determining the efficiency of a country’s equity market.
KW - Corporate governance quality
KW - Disclosure frequency
KW - Analysts’ forecasts
KW - Price discovery
KW - Timeliness
M3 - Working paper
T3 - Accounting and Finance Working Paper Series
BT - Do better governed firms make more informative disclosures? Canadian evidence
PB - The Department of Accounting and Finance
CY - Lancaster University
ER -