Submitted manuscript, 614 KB, PDF document
Research output: Working paper
Research output: Working paper
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TY - UNPB
T1 - Financial integration and the transparency of firms in emerging capital markets
AU - Zhang, Qiyu
AU - Beekes, Wendy
AU - Brown, Philip
PY - 2014
Y1 - 2014
N2 - We examine the association between financial integration and capital market transparency of emerging-market firms. We use four intra-year price timeliness measures derived from the Beekes and Brown (2006, 2007) methods as indicators of the firm’s transparency. The sample comprises 57,465 firm-year observations on listed companies in 24 emerging economies over the period 1995-2010. As expected, we find that greater financial integration is associated with greater transparency, and that the effect is more pronounced when the news about the firm is bad. Using structural equation modelling (SEM), we find evidence of a mechanism through which financial integration enhances the information environment: improved corporate governance.
AB - We examine the association between financial integration and capital market transparency of emerging-market firms. We use four intra-year price timeliness measures derived from the Beekes and Brown (2006, 2007) methods as indicators of the firm’s transparency. The sample comprises 57,465 firm-year observations on listed companies in 24 emerging economies over the period 1995-2010. As expected, we find that greater financial integration is associated with greater transparency, and that the effect is more pronounced when the news about the firm is bad. Using structural equation modelling (SEM), we find evidence of a mechanism through which financial integration enhances the information environment: improved corporate governance.
KW - Financial integration
KW - Transparency
KW - Emerging markets
M3 - Working paper
BT - Financial integration and the transparency of firms in emerging capital markets
ER -