Voluntary disclosure and corporate governance

Retrieved 12 January However, the corporate governance effects, especially in terms of ownership diffusion and other dimensions of governance, have still not been regulated such that their potential effects are reduced making it the crucial determinant of voluntary disclosure of an organisation Abdelsalam, Information about management and shareholders For example, information on stockholders and creditorsand shareholding breakdowns.

It would be interesting to study the tone of voluntary disclosure in annual reports and to explore the extent to which tone disclosure affects the stock market participants in emerging economies.

Another research study which was conducted to understand the financial crisis caused in Asia in — and also to determine the reasons for the slow recovery of the market afterwards, was done by Gul and Leung The New York Voluntary disclosure and corporate governance Company.

The time delay caused during sending this information to all the relevant shareholders allows private briefings among specific shareholders, thus encouraging private briefings. Also, the number of independent directors needs to be limited in companies as too many independent directors can again reduce the amount of voluntary disclosure undertaken by the company.

This study was also validated by many other relevant studies and used primary data from an emerging economy to conduct the research.

John Sitcom

The uses of methods which reduce any delay in distributing information such as corporate internet reporting have also been encouraged so that the possibility of selective disclosures and private briefing is removed. The methods used by the research studies will be looked into and so will their findings with previous research on similar topics.

Research In the research conducted by Abdelsalam et althe evaluation of ownership diffusion and the voluntary disclosure of information especially on corporate sites was measured using the factors of comprehensiveness, content, credibility and usability and revealed some surprising results.

The organisations which have at least one or more independent directors have adequate voluntary disclosure of company information, but if the number of independent directors is too many, the voluntary disclosure level reduces.

Voluntary disclosure

Insights into Enhancing Voluntary Disclosures. The last part will conclude the literature review by highlighting the main findings of the overall research.

Retrieved on April 20, They also looked into the size and the level of debt taken by companies in their findings. Voluntary disclosure of information is basically the process of information publication or distribution initiated by the organisation to its shareholders and the external market it operates in.

All of the above research studies have only researched companies which were privately owned and did not have any part owned or were influenced by the government. While the research conducted by Abdelsalam et al was based on companies in a developed economy such as the UK, the rest of the studies were based in the emerging economies of Asian countries, principally Hong Kong and Singapore.

This is another key factor which can affect the voluntary disclosure of information in companies since it is the government which actually promotes transparency of information.

There was also another interesting find from this study. It was evident from their study that the need for increased transparency was necessary to reduce the information gap in the markets and improve the communication between the external investors and the internal board of organisations, if the development of the overall market was the aim.

However, this research study did take into consideration the government ownership, the size and the level of debt in companies. Ownership structure and corporate voluntary disclosure in Hong Kong and Singapore.

Corporate Governance and Voluntary Disclosure

These changes have managed to reduce the issue of time delays in publishing information. The research conducted by Chau and Gray identified that a wide range of companies in Asian countries are family oriented and highly influenced by the local culture which does not promote voluntary disclosure of information.This paper explores the association between corporate governance mechanisms and voluntary disclosure practices in Kuwait showing that four out of eight corporate governance mechanisms are significantly associated with the level of voluntary disclosure, three negatively, one positively.

The forces that give rise in demand of information disclosure in modern capital market stems from the information asymmetry and agency conflicts existing between the management and the stockholders. Abstract.

This study examines the relationship between the voluntary disclosure of information about corporate governance practices and the intention to raise external finance.

The extent of voluntary disclosure is also affected by the firm's corporate governance structure and ownership structure; in particular, research has found that top executives have a significant influence on their firms' voluntary disclosures, and that managers have unique disclosure styles related to their personal backgrounds including their.

This book aimed to identify the level of voluntary disclosure and the corporate governance attributes that would affect the level of voluntary disclosure in the annual financial reports of Jordanian banks listed in the Amman Stock Exchange (ASE) for the years corporate governance code for banks in Jordan in transparency and disclosure.

Based on the annual financial reports of 13 banks listed in Amman Stock Exchange (ASE) forthe results indicated.

Voluntary disclosure and corporate governance
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