This paper, focusing on a non Anglo-Saxon market, attempts to advance knowledge in the understanding of the complementary / substitute relationship between governance mechanisms and corporate disclosure in medium-sized listed firms. The manuscript applies content analysis techniques and proposes a disclosure quality score index, based on the quantity, the variety and the completeness of information disclosed. Moreover, OLS regression analysis is performed for testing the explanatory power of internal and external corporate governance mechanisms as determinants of communication quality. The results demonstrate the relevance of internal control mechanism, as well as their current substitutive nature respect to disclosure. In addition, empirical evidence show that a diffuse ownership along with the existence of a high number of committees are associated with increased qualitative levels of voluntary disclosure.
Corporate Governance Mechanisms and Disclosure in Medium-sized Listed Firms: Substitutes or Complements?
SATTA, GIOVANNI;PAROLA, FRANCESCO;PROFUMO, GIORGIA;PENCO, LARA
2014-01-01
Abstract
This paper, focusing on a non Anglo-Saxon market, attempts to advance knowledge in the understanding of the complementary / substitute relationship between governance mechanisms and corporate disclosure in medium-sized listed firms. The manuscript applies content analysis techniques and proposes a disclosure quality score index, based on the quantity, the variety and the completeness of information disclosed. Moreover, OLS regression analysis is performed for testing the explanatory power of internal and external corporate governance mechanisms as determinants of communication quality. The results demonstrate the relevance of internal control mechanism, as well as their current substitutive nature respect to disclosure. In addition, empirical evidence show that a diffuse ownership along with the existence of a high number of committees are associated with increased qualitative levels of voluntary disclosure.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.