Journal of Business Ethics 83 (3):543 - 563 (2008)
|Abstract||Recent years have featured a spate of regulatory action pertaining to the development and/or disclosure of corporate governance structures in response to financial scandals resulting in part from governance failures. During the same period, corporate governance activists and institutional investors increasingly have called for increased voluntary governance disclosure. Despite this attention, there have been relatively few comprehensive studies of governance disclosure practices and response to the regulation. In this study, we examine a sample of 50 U.S. firms and their public disclosure packages from 2004. We find a high degree of variability in the presentation and reporting format choices for many elements of the governance structure. This variability includes several items for which disclosure is mandated by regulators or legislative action. In particular, smaller firms offer fewer disclosures pertaining to independence, board selection procedures, and oversight of management (including whistleblowing procedures). There are also trends associated with board characteristics: boards that are less independent offer fewer disclosures of independence and management oversight matters. Moreover, large firms provide more disclosures of independence standards, board selection procedures, audit committee matters, management control systems, other committee matters, and whistleblowing procedures but do not appear to have a strictly superior information environment when compared to smaller firms. The findings raise questions about compliance with regulatory requirements and the degree to which conflicts of interest between managers and directors are being controlled. While there have been notable improvements in the information environment of governance disclosures, there remain structural issues that may possess negative ramifications for stakeholders.|
|Keywords||disclosure corporate governance non-financial information governance reporting ethics SEC regulation|
|Categories||categorize this paper)|
|Through your library||Configure|
Similar books and articles
Armand Picou & Michael J. Rubach (2006). Does Good Governance Matter to Institutional Investors? Evidence From the Enactment of Corporate Governance Guidelines. Journal of Business Ethics 65 (1):55 - 67.
Lori Holder-Webb & Jaffrey R. Cohen (2007). The Association Between Disclosure, Distress, and Failure. Journal of Business Ethics 75 (3):301 - 314.
J.-L. W. Mitchell Der Zahvann & Greg Tower (2004). Audit Committee Features and Earnings Management: Further Evidence From Singapore. International Journal of Business Governance and Ethics 1 (s 2-3):233-258.
Stephen Yan-Leung Cheung, J. Thomas Connelly & Piman Limpaphayom (2007). Determinants of Corporate Disclosure and Transparency. International Corporate Responsibility Series 3:313-342.
Stephen Yan-Leung Cheung, J. Thomas Connelly & Piman Limpaphayom (unknown). Determinants of Corporate Disclosure and Transparency: Evidence From Hong Kong and Thailand. :313-342.
Lorne N. Switzer & Catherine Kelly (2006). Corporate Governance Mechanisms and the Performance of Small-Cap Firms in Canada. International Journal of Business Governance and Ethics 2 (s 3-4):294-328.
David S. Gelb & Joyce A. Strawser (2001). Corporate Social Responsibility and Financial Disclosures: An Alternative Explanation for Increased Disclosure. [REVIEW] Journal of Business Ethics 33 (1):1 - 13.
Lori Holder-Webb, Jeffrey R. Cohen, Leda Nath & David Wood (2009). The Supply of Corporate Social Responsibility Disclosures Among U.S. Firms. Journal of Business Ethics 84 (4):497 - 527.
Emanuele Bajo, Marco Bigelli, David Hillier & Barbara Petracci (2009). The Determinants of Regulatory Compliance: An Analysis of Insider Trading Disclosures in Italy. [REVIEW] Journal of Business Ethics 90 (3):331 - 343.
J.-L. W. Mitchell Der Zahvann (2004). Association Between Board of Director Characteristics and the Amount of Voluntary Audit Committee Disclosures. International Journal of Business Governance and Ethics 1 (s 2-3):210-232.
Added to index2009-01-28
Total downloads9 ( #122,367 of 722,780 )
Recent downloads (6 months)1 ( #60,541 of 722,780 )
How can I increase my downloads?