Corporate Governance in Investment Efficiency, Financial Information Disclosure: Comparison
View Latest Version
Please note this is a comparison between Version 2 by Amina Yu and Version 1 by Samira Moghaddamzadeh Kashani.

Corporate governance minimizes the conflicting interests between internal and external stakeholders and shareholders. The corporate governance structure affects the quality of accounting disclosure and information quality assessment and guides analysts to accurately forecast future performance. There is no consensus definition for corporate governance, but its ultimate goal is to achieve accountability, transparency, justice, fairness, and respect for the rights of all stakeholders. Corporate governance is not related to the primary operations of a company. Still, it is related to leading the company, monitoring the activities of the CEO, and assessing the accountability power of the company’s executives to stakeholders. A proper corporate governance system can help companies gain investors’ trust and encourage investment.

  • investment efficiency
  • financial information disclosure risk
  • corporate governance

1. Introduction

Good corporate governance can provide a practical framework for balancing ownership and control, effective monitoring, appropriate incentives for the board and management to pursue goals for the company’s interests and shareholders, and the equitable treatment of shareholders and other stakeholders (Peng et al. 2021). By establishing a quality corporate governance system, it is possible to take steps toward achieving a company’s long-term goals by motivating its managers and employees (Black et al. 2010). Therefore, when corporate governance is appropriate, managers’ behavior is expected to align with shareholders’ interests (Med Bechir and Jouirou 2021). In general, corporate governance has a supervisory role over a company. Corporate governance mechanisms can maximize the interests of shareholders (predominantly minority shareholders) by monitoring the performance and behavior of managers and employees (Soliman 2020) and preventing the opportunistic behaviors of CEOs (Abd Karim et al. 2018).
Most of the research has confirmed the positive impact of corporate governance on performance (Braune et al. 2020; Paniagua et al. 2018; Iqbal et al. 2019; Mertzanis et al. 2019; Duppati et al. 2017). However, some studies have not reached such a conclusion (Rashed et al. 2018; Chen et al. 2017). Investment decisions in companies are determined by key factors such as macroeconomic factors, types of economic and monetary policies, money and capital markets, and corporate operations (Richardson 2006). In addition, managerial reasons such as unreasonable behavior of managers and inefficient financial markets in companies with a weak corporate governance system affect the companies’ investment policies (Malmendier et al. 2011). It can be said that when a company has achieved a high level of investment efficiency, this ability indicates the strength of regulatory processes in the company, which has prevented inefficient investments of excess cash flow in the company. Through preventive monitoring of corporate governance over high-risk investment events, a company can detect an inefficient investment in the organization before it occurs, which can prevent an inefficient investment (He et al. 2019) because investment efficiency generally means investing in projects with a positive net present value, regardless of investing in projects with a negative net present value (Verdi 2006). Gompers et al. (2010) showed that the company’s value would be less in a weak corporate governance system. This is why the ownership structure plays a significant role in the value of the company, because the lower the concentration of ownership, the more managers sacrifice some of the company’s values to protect their interests, and as a result, the efficiency of the investment decreases. Managers have a strong incentive to invest in negative net present value (NPV) projects in companies with high free cash flows, especially when management monitoring is weak, where agency costs are high and corporate ownership and control are separated (Stulz 1990). Therefore, due to the infancy of corporate governance law in the Tehran Stock Exchange, evaluation of the impact of corporate governance on operational efficiency in the Tehran Stock Exchange market can demonstrate its effectiveness in this market.
In general, disclosure is the provision of the minimum legal requirement of information. Thus far, several structures, such as appropriateness, comprehensiveness, reliability, informativeness and timeliness, have been used as proxies of disclosure quality. The stronger the corporate governance system, the higher the information disclosure and the greater the information transparency (Braune et al. 2020). When corporate governance is weak, managers can increase financial reporting risk by manipulating financial information to achieve personal goals and, consequently, create information inefficiencies in determining stock prices in the capital market. According to the expectation of implementing corporate governance, corporate governance can affect the desired and more transparent disclosure of information and not allow managers to hide their poor performance with poor operational efficiency through undesirable disclosure of information. Investors consider corporate financial information as one of the sources to reduce information asymmetry. To evaluate the efficiency of the investment, investors refer to the financial information of companies. The more reliable and relevant the information is, the more possible it is to make the right decisions. The corporate governance system can prevent opportunistic behaviors of management in not disclosing sufficient and quality information by increasing management monitoring processes. Companies with better corporate governance have high-quality financial information disclosure, and providing high-quality financial information convinces investors and other stakeholders to invest (Kouki and Attia 2016). Establishing a strong corporate governance mechanism can encourage investors to purchase the company’s stock at a higher price by increasing the proper disclosure of financial information and gaining investors’ trust, eventually maximizing the company’s value. In Europe, having investigated the reasons for disclosing intangible capital information, it was concluded that improving corporate governance, which is subject to voluntary disclosure of information, causes an increase in corporate financial performance (Braune et al. 2020).
The high risk of financial information disclosure can coincide with a company’s investment performance. Due to opportunistic behaviors of management, increasing the risk of financial information disclosure can indicate the inefficiency of the company’s investments. An increase in the level of high-quality disclosure related to financial statements leads to a higher level of investment in a company (Li et al. 2019). It can also indicate a two-way relationship between the level of disclosure and the efficiency of investment in companies (Elberry and Hussainey 2020). Roychowdhury et al. (2019), in their study, have shown that the quality of reporting has a direct and positive effect on investment efficiency. In addition, information transparency is positively related to investment efficiency for firms with strong governance. By improving corporate governance, the quality of information disclosure and investment efficiency increases (Chen et al. 2021). The high quality of financial information disclosure in a company, which is influenced by the strong corporate governance structure in the company through more supervision and strict rules to control the actions of managers, and thereof the increasing of investment efficiency, is achieved through limiting an overinvestment in the negative NPV projects or under-investment by neglecting positive NPV ones (Elberry and Hussainey 2021). Good corporate governance can reduce information asymmetry, agency costs, and information search costs and can increase information transparency since corporate governance allows investors to experience fewer investment errors; sound corporate governance can ensure that while a company’s managers have the incentive to make their own profits, they attempt to increase the interests of investors and the firm value (Cheng et al. 2019).
Corporate governance and its importance are relatively new issues in Iran. In 2004, corporate governance, based on OECD guidelines, gained public attention with the first attempt by the Tehran Stock Exchange to codify the first draft of corporate governance bylaws. In 2008, the OECD’s corporate governance principles were translated into Persian. In 2010, the Securities and Exchange Commission (SEO) completed and formally approved the corporate governance regulations, but its implementation in companies has not yet been mandatory. During this time, several seminars, conferences, and awareness-raising activities on corporate governance were held. Meanwhile, the SEO attempted to improve corporate governance through separate regulations such as disclosure and transparency.
Due to the low quality of disclosure in the Iranian capital market compared to developed countries, the desirability of domestic and foreign investors to make new investments in the Iranian capital market has been challenged (Mehrabani 2012). In addition, unlike the majority of shareholders, the interests of minority shareholders are not protected, unlike in other countries where non-controlling shareholders sometimes have significant influence. No Iranian institution ranks companies based on characteristics such as returns, revenue, total assets, number of employees, and so etc.on, and Iran’s internal control supervision mechanisms are inadequate. As a result, managers often prefer personal and corporate interests (Irani and Safari Gerayeli 2017). The existence of suitable conditions for profit-seeking managers will cause problems of agency theory in companies, in which corporate governance is expected to play a significant role in reducing agency costs.
Although the corporate governance literature is fully developed and many studies have been conducted in this field, no studies have been conducted on the impact of corporate governance on investment efficiency (as one of the essential roles of company leadership) and the impact of corporate governance on the risk of financial disclosure (as one of the criteria for determining the expected return of shareholders) that can indicate the effectiveness of the presence of corporate governance in the management of the company, which can be one of the points that investors consider. Therefore, this studyerein, it tries to answer whether the implementation of corporate governance legislation in Iran has affected the efficiency and risk of financial information disclosure of companies. Empirical evidence obtained in this regard can provide feedback on implementing corporate governance legislation for the Tehran Stock Exchange and investors in this market.

2. Corporate Governance and Investment Efficiency

Investment efficiency means the organization invests in projects with positive net present value (Verdi 2006). The basic principles of corporate governance include ensuring the observance of ethics and protection of the stakeholders’ rights, ensuring the observance of the code of ethics and other values. According to stakeholder theory, corporate governance should take into account the interests of all organizational stakeholders, increase moral obligations in an organization, and raise the responsibility of the individual to stakeholders by disclosing the information risk to stakeholders to help them make decisions, maintain wealth, and increase trust between the company and stakeholders (Habbash 2017). Ethical decision making and ethical values are fully reflected in issues such as conflicts of interest, opportunities to participate in fair transactions, gaining trust, correct use of a company’s assets, operating per rules and laws, and encouragement in dealing with unethical practices (Li et al. 2019). A corporate governance system can help companies gain investors’ trust; when corporate governance is appropriate, managers’ behavior is expected to be in line with the interests of the shareholder. In other words, corporate governance leads to an increase in the value of a company (Black et al. 2006). Research conducted in China showed that managers in companies that have weak internal control over financial reporting are more likely to invest inefficiently (Lai et al. 2020). The efficiency of investing in companies that have a stronger monitoring system is higher. According to agency theory, managers seek to maximize their interests in a company. In their own interests, they prefer to invest free cash flow in projects that may even be unprofitable. When the quality of corporate governance is strengthened, investment efficiency improves. High investment efficiency can indicate a strong monitoring system in a company; this system causes investment efficiency to increase. Through corporate governance’s preventive monitoring of high-risk investment events, they can identify an ineffective investment in the organization before it occurs; this identification can prevent an inadequate investment (He et al. 2019). Several research studies on corporate governance and investment efficiency concluded that there is a positive and significant relationship between corporate governance and financial performance (Mertzanis et al. 2019; Med Bechir and Jouirou 2021; Li et al. 2020). Some of these research studies have shown that the board’s independence positively affects the relationship between corporate governance and financial performance (Paniagua et al. 2018; Al-ahdalet al. 2020). In other words, a strong corporate governance system improves financial performance (Duppati et al. 2017; Iqbal et al. 2019; Machmud et al. 2020; Srivastava and Kathuria 2020; Peng et al. 2021; Sheikh and Alom 2021), and the efficiency of resource investment has a positive and significant effect on the growth of financial performance (Özbuğdayet al. 2020). Soliman (2020) concluded in his study that, by having high audit quality and reducing information asymmetry, corporate governance has a positive effect on increasing the attraction of new investments and leads to an increase in the volume of investment in companies, and as a result, the value of the company increases. On the other hand, Rodrigues et al. (2020) concluded that investment efficiency has a positive and significant relationship with corporate governance mechanisms that help align the interests of managers and shareholders. Chen et al. (2016) showed that companies with positive free cash flow overinvest, while some corporate governance characteristics, such as larger board size, reduce overinvestment. The studies conducted in the field of corporate governance and excessive managerial entrenchment and firm performance show that excessive managerial entrenchment reduces board monitoring and deteriorates the firm valuation in the capital markets because as CEOs become entrenched, they gain more control and seek to maximize their benefits rather than the interests of the shareholders. As a result, excessive managerial entrenchment has a negative impact on the shareholders’ welfare. It causes a decrease in the efficiency of the company’s performance and, subsequently, a reduction in the firm value (Antounian et al. 2021). On the other hand, the conclusions of the studies conducted in the field of corporate governance quality, leverage, and performance indicate that the higher the quality of corporate governance, the lower leverage (Memon et al. 2019), and as a result, financial performance increases (Zhou et al. 2021). Wang et al. (2021) showed that investment efficiency increases with stock concentration through increasing corporate governance, such as reducing agency conflict, and according to the research conducted by Zhang (2020), earning informativeness decreases with the reduction in controlling of shareholder’s ownership, and reducing agency conflict has a positive effect on improving the investment efficiency of companies. In addition, considering the recent crisis and the COVID-19 pandemic, studies (Hsu and Liao 2022) showed that good corporate governance could positively affect the stock market’s performance in this era. Some corporate governance mechanisms, such as ownership structure, are strongly related to stock price reactions during the COVID-19 pandemic. Large companies and governments experience less stock price declines in response to the pandemic (Ding et al. 2021).

3. Corporate Governance and Financial Information Disclosure Risk

The term disclosure, in its broadest concept, means providing information. Accountants use this term in a more limited way, meaning publishing financial information related to a company in financial reports (usually in annual reports). In the narrowest concept, information disclosure includes management discussions and analyses, footnotes to financial statements and supplementary financial statements (Clark 2016). Today, information plays a significant role in the investment decisions of investors. Therefore, to obtain more information and to solve the problem of information asymmetry, information disclosure is used due to the separation of companies’ ownership and management (Habbash et al. 2016). With the need to disclose financial information for investors, studies have investigated the characteristics and deficiencies related to the disclosure of risks in companies’ annual reports. By increasing the quality of disclosure achieved through monitoring and the composition and structure of the board, information asymmetry is reduced between a company and investors (Ghouma et al. 2018). Empirical evidence related to the mechanism of corporate governance and the quality of disclosure indicates that corporate governance plays a vital role in the quality of disclosure (Alagla 2019) such that some corporate governance mechanisms, such as board size, audit type, the audit committee independence, have a positive and significant effect on the financial reporting quality (Paul et al. 2018). Even the effect of corporate governance on the voluntary disclosure of financial information has been proven in various research studies, indicating the company’s desire to reduce information asymmetry and the risk of financial information disclosure. Al-Nimer (2019), while investigating the effect of corporate governance on voluntary disclosure, concluded that corporate governance mechanisms, including the board size and the audit committee size, have a positive and significant relationship with the level of voluntary disclosure. Shan (2019) reached a similar conclusion in another study and concluded that corporate governance mechanisms such as foreign ownership, the ratio of independent directors, and the age of a company promote voluntary disclosure. Lokman et al. (2012), by studying the relationship between the corporate governance quality and the voluntary disclosure of financial information, concluded that there is a higher probability of voluntary disclosure of information in companies with a high quality of corporate governance. El-Deeb and Elsharkawy (2019) investigated the effect of board characteristics as one of the corporate governance mechanisms and disclosure. ThHereis articlen, it will measures corporate governance mechanisms such as board independence, board size, CEO duality, and board gender diversity. The research results indicate that the auditor type and the board size have a significant and positive relationship with information disclosure. Jacoby et al. (2019) showed that both direct and indirect effects of internal corporate governance mechanisms, such as incentive compensation and board independence, increase the company’s information transparency. Both corporate governance mechanisms and external control mechanisms help boost such transparency. Li et al. (2020) showed that the risk of financial information disclosure has a positive and significant relationship with investment efficiency. This means that investment efficiency is improved by increasing financial information transparency; in addition, increasing the level of transparency when companies invest effectively acts as a positive signal for shareholders, and as a result, a high level of financial reporting disclosure is associated with an increase in investment efficiency (Elberry and Hussainey 2020; Biddle et al. 2009). In addition, other research shows that reporting quality directly and positively affects investment efficiency and provides better identification (Roychowdhury et al. 2019). According to the theoretical foundations and the background of the study, and since financial information disclosure can be the reason for the higher efficiency of investment in companies, in the second hypothesis, the relationship between corporate governance and its effect on the risk of financial information disclosure is investigated.

References

  1. Peng, Hongsong, Jinhe Zhang, Shien Zhong, and Peizhe Li. 2021. Corporate governance, technical efficiency and financial performance: Evidence from Chinese listed tourism firms. Journal of Hospitality and Tourism Management 48: 163–73.
  2. Black, Bernard S., Antonio Gledson De Carvalho, and Erica Gorga. 2010. Corporate governance in Brazil. Emerging Markets Review 11: 21–38.
  3. Med Bechir, Chenguel, and Meriem Jouirou. 2021. Investment efficiency and corporate governance: Evidence from Asian listed firms. Journal of Sustainable Finance &Investment, 1–23.
  4. Soliman, Walid Shehata Mohamed Kasim. 2020. Investigating the effect of corporate governance on audit quality and its impact on investment efficiency. Investment Management and Financial Innovations 17: 175–88.
  5. Abd Karim, Norazira, Anuar Nawawi, and Ahmad Saiful Azlin Puteh Salin. 2018. Inventory control weaknesses—A case study of lubricant manufacturing company. Journal of Financial Crime 25: 436–49.
  6. Braune, Eric, Jean-Michel Sahut, and Fréderic Teulon. 2020. Intangible capital, governance and financial performance. Technological Forecasting and Social Change 154: 119934.
  7. Paniagua, Jordi, Rafael Rivelles, and Juan Sapena. 2018. Corporate governance and financial performance: The role of ownership and board structure. Journal of Business Research 89: 229–34.
  8. Iqbal, Sana, Ahmad Nawaz, and Sadaf Ehsan. 2019. Financial performance and corporate governance in microfinance: Evidence from Asia. Journal of Asian Economics 60: 1–13.
  9. Mertzanis, Charilaos, Mohamed A. K. Basuony, and Ehab K. A. Mohamed. 2019. Social institutions, corporate governance and firm-performance in the MENA region. Research in International Business and Finance 48: 75–96.
  10. Duppati, Geeta, Albert Sune, and Navajyoti Samanta. 2017. Corporate governance, research and development volatility and firm performance-Evidence from Spain and Ireland. Cogent Economics & Finance 5: 1317117.
  11. Rashed, Ahmed, Ebitihj Abd El-Rahman, Esraa Isamil, and Doaa Abd El-Samea. 2018. Ownership structure and investment efficiency: Evidence from Egypt. International Journal of Accounting and Financial Reporting 8: 1–22.
  12. Chen, Naiwei, Hao-Chang Sung, and Jingjing Yang. 2017. Ownership structure, corporate governance and investment efficiency of Chinese listed firms. Pacific Accounting Review 29: 266–82.
  13. Richardson, Scott. 2006. Over-investment of free cash flow. Review of Accounting Studies 11: 159–89.
  14. Malmendier, Ulrike, Geoffrey Tate, and Jon Yan. 2011. Overconfidence and early-life experiences: The effect of managerial traits on corporate financial policies. The Journal of Finance 66: 1687–733.
  15. He, Ying, Cindy Chen, and Yue Hu. 2019. Managerial overconfidence, internal financing, and investment efficiency: Evidence from China. Research in International Business and Finance 47: 501–10.
  16. Verdi, Rodrigo S. 2006. Financial Reporting Quality and Investment Efficiency. Working Paper, Sloan School of Management. Cambridge: MIT.
  17. Gompers, Paul A., Joy Ishii, and Andrew Metrick. 2010. Extreme governance: An analysis of dual-class firms in the United States. The Review of Financial Studies 23: 1051–88.
  18. Stulz, Reném. 1990. Managerial discretion and optimal financing policies. Journal of Financial Economics 26: 3–27.
  19. Kouki, Mondher, and Bilel Ben Attia. 2016. Corporate Governance Score and the Quality of Financial Disclosures: Evidence from the French Context. International Journal of Accounting and Financial Reporting 6: 217–30.
  20. Li, Yanqiong, Jie He, and Min Xiao. 2019. Risk disclosure in annual reports and corporate investment efficiency. International Review of Economics & Finance 63: 138–51.
  21. Elberry, Noha, and Khaled Hussainey. 2020. Does corporate investment efficiency affect corporate disclosure practices? Journal of Applied Accounting Research 21: 309–27.
  22. Roychowdhury, Sugata, Nemit Shroff, and Rodrigo S. Verdi. 2019. The effects of financial reporting and disclosure on corporate investment: A review. Journal of Accounting and Economics 68: 101246.
  23. Chen, Jean Jinghan, Xinsheng Cheng, Stephen X. Gong, and Youchao Tan. 2021. Project-level disclosure and investment efficiency: Evidence from China. Journal of Accounting, Auditing & Finance 36: 854–80.
  24. Elberry, Noha, and Khaled Hussainey. 2021. Governance vis-à-vis investment efficiency: Substitutes or complementary in their effects on disclosure practice. Journal of Risk and Financial Management 14: 33.
  25. Cheng, Lee-Young, Yi-Chen Su, Zhipeng Yan, and Yan Zhao. 2019. Corporate governance and target price accuracy. International Review of Financial Analysis 64: 93–101.
  26. Mehrabani, Fatemeh. 2012. Corporate Governance, Iran Stock Market andEconomic Growth. International Journal of Trade, Economics and Finance 3: 370.
  27. Irani, Mahroo, and Mehdi Safari Gerayeli. 2017. Relationship between corporate governance and CEO compensation among listed firms in Tehran Stock Exchange. International Journal of Economics and Financial Issues 7: 285–92.
  28. Habbash, Murya. 2017. Corporate governance and corporate social responsibility disclosure: Evidence from Saudi Arabia. International Journal of Corporate Strategy and Social Responsibility 1: 161–78.
  29. Black, Bernard S., Hasung Jang, and Woochan Kim. 2006. Does corporate governance predict firms’ market values? Evidence from Korea. The Journal of Law, Economics, and Organization 22: 366–413.
  30. Lai, Shu-Miao, Chih-Liang Liu, and Sheng-Syan Chen. 2020. Internal control quality and investment efficiency. Accounting Horizons 34: 125–45.
  31. Li, Zhiyong, Jonathan Crook, Galina Andreeva, and Ying Tang. 2020. Predicting the risk of financial distress using corporate governance measures. Pacific-Basin Finance Journal 68: 101334.
  32. Al-ahdal, Waleed M., Mohammed H. Alsamhi, Mosab I. Tabash, and Najib H. S. Farhan. 2020. The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance 51: 101083.
  33. Machmud, Mulyana, Ibrahim H. Ahmad, Abdul Khalik, Moh Zulkifli Murfat, and Jafar Basalamah. 2020. Effect of Capital Structure and Good Corporate Governance on Financial Performance in Manufacturing Companies based on the Indonesia Stock Exchange. IORS Journal of Bunisness and Management 22: 36–49.
  34. Srivastava, Govind, and Vinish Kathuria. 2020. Impact of corporate governance norms on the performance of Indian utilities. Energy Policy 140: 111414.
  35. Sheikh, Wahidul, and Khairul Alom. 2021. Corporate governance, board practices and performance of shipping firms in Bangladesh. The Asian Journal of Shipping and Logistics 37: 259–67.
  36. Özbuğday, Fatih Cemil, Derya Fındık, Kıvılcım Metin Özcan, and Sıdıka Başçı. 2020. Resource efficiency investments and firm performance: Evidence from European SMEs. Journal of Cleaner Production 252: 119824.
  37. Rodrigues, Ricardo, António Samagaio, and Teresa Felício. 2020. Corporate governance and R&D investment by European listed companies. Journal of Business Research 115: 289–95.
  38. Chen, Xin, Yong Sun, and Xiaodong Xu. 2016. Free cash flow, over-investment and corporate governance in China. Pacific-Basin Finance Journal 37: 81–103.
  39. Antounian, Christelle, Mustafa A. Dah, and Mostafa Harakeh. 2021. Excessive managerial entrenchment, corporate governance, and firm performance. Research in International Business and Finance 56: 101392.
  40. Memon, Zulfiqar Ali, Yan Chen, and Ayaz Ali Samo. 2019. Corporate governance, firm age, and leverage: Empirical evidence from China. Corporate Governance 10: 19–31.
  41. Zhou, Mengling, Kexin Li, and Zhongfei Chen. 2021. Corporate governance quality and financial leverage: Evidence from China. International Review of Financial Analysis 73: 101652.
  42. Wang, Jiangyuan, Hua Wang, and Di Wang. 2021. Equity concentration and investment efficiency of energy companies in China: Evidence based on the shock of deregulation of QFIIs. Energy Economics 93: 105032.
  43. Zhang, Li. 2020. The effects of trading rights and ownership structures on the informativeness of accounting earnings: Evidence from China’split share structure reform. Research in International Business and Finance 51: 101110.
  44. Hsu, Yu-Lin, and Li-Kai Connie Liao. 2022. Corporate governance and stock performance: The case of COVID-19 crisis. Journal of Accounting and Public Policy 41: 106920.
  45. Ding, Wenzhi, Ross Levine, Chen Lin, and Wensi Xie. 2021. Corporate immunity to the COVID-19 pandemic. Journal of Financial Economics 141: 802–30.
  46. Clark, Cynthia E. 2016. Corporate and information disclosure: The definitional landscape. Public Relations Review 42: 229–31.
  47. Habbash, Murya, Khaled Hussainey, and Awad Elsayed Awad. 2016. The determinants of voluntary disclosure in Saudi Arabia: An empirical study. International Journal of Accounting, Auditing and Performance Evaluation 12: 213–36.
  48. Ghouma, Hatem, Hamdi Ben-Nasr, and Ruiqian Yan. 2018. Corporate governance and cost of debt financing: Empirical evidence from Canada. The Quarterly Review of Economics and Finance 67: 138–48.
  49. Alagla, Saleh. 2019. Corporate governance mechanisms and disclosure quality: Evidence from UK top 100 public companies. Corporate Ownership and Control 16: 97–107.
  50. Paul, Mon Ye, Abuye Samuel, and Alphonsus Anichebe. 2018. Effect of corporate governance characteristics on accounting reporting quality. African Journal Professional Research on Human Development 14: 33–42.
  51. Al-Nimer, Munther. 2019. Effect of corporate governance rules on voluntary disclosure in Jordanian corporations listed with the Amman Stock Exchange (ASE): (An empirical study). Studies in Business and Economics 14: 154–68.
  52. Shan, Yuan George. 2019. Do corporate governance and disclosure tone drive voluntary disclosure of related-party transactions in China? Journal of International Accounting, Auditing and Taxation 34: 30–48.
  53. Lokman, Norziana, Julie Cotter, and Joseph Mula. 2012. Corporate governance quality, incentive factors and voluntary corporate governance disclosures in annual reports of Malaysian publicly listed companies. Corporate Ownership and Control 10: 329–52.
  54. El-Deeb, Mohamed Samy, and Lamis Mustafa Elsharkawy. 2019. The impact of board characteristics on the disclosure of the forward-looking evidence from the Egyptian Stock Market. Alexandria Journal of Accounting Research, Faculty of Commerce, Alexandria University 3: 2682–3144.
  55. Jacoby, Gady, Mingzhi Liu, Yefeng Wang, Zhenyu Wu, and Ying Zhang. 2019. Corporate governance, external control, and environmental information transparency: Evidence from emerging markets. Journal of International Financial Markets, Institutions and Money 58: 269–83.
  56. Biddle, Gary C., Gilles Hilary, and Rodrigo S. Verdi. 2009. How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics 48: 112–31.
More
© Text is available under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/)
ScholarVision Creations
Feedback