Relationship between Corporate Governance and Voluntary Disclosure in Annual Reports: Evidence from Listed Companies in China and UK

Chang, Siqi (2012) Relationship between Corporate Governance and Voluntary Disclosure in Annual Reports: Evidence from Listed Companies in China and UK. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Corporate voluntary disclosure has been extensively documented across markets, such as in the U.S., UK and Asian region. This current dissertation investigates the different voluntary disclosure level of listed companies between China and UK as well as the interplay between corporate governance and voluntary disclosure. I regressed voluntary disclosure index of three different information types (strategic information, financial information and non-financial information) on five governance variables (board size, presence of audit committee, ownership concentration, board composition and CEO duality) and three control variables (firm size, leverage and profitability) with data collected from corporate annual reports of 100 listed companies in Food & Beverage industry.

The findings show that listed companies in China have lower overall voluntary disclosure than listed companies in UK and also suggest the presence of a complementary relationship between governance and voluntary disclosure. With regard to listed companies in China, CEO duality is the most important influencing factor on voluntary disclosure of Chinese listed companies and firm size, profitability, leverage and board composition only has influence on part of voluntary disclosure in the predicted direction. This finding is supported by Hossain (1994) and Ross (1979). As for listed companies in UK, firm size is the most significant influencing factor on voluntary disclosure and ownership concentration, profitability, board composition; presence of audit committee, CEO duality only has influence on part of voluntary disclosure. This result is consistent with Chow (1987), Meek (1995), Lim (2007) and Eng (2003). The dissertation can contribute to the understanding of the relationship between governance and voluntary disclosure of different information types by a particular comparison between two countries. This may be of interest of to practitioners and regulators.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 04 Apr 2013 13:35
Last Modified: 26 Oct 2016 08:36
URI: http://eprints.nottingham.ac.uk/id/eprint/25833

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