Corporate Governance and the Informativeness of Disclosures in Australia: A Re-Examination
Lancaster University - Department of Accounting and Finance
Philip R. Brown
University of Western Australia - Department of Accounting and Finance; University of New South Wales - Australian School of Business; Lancaster University - Department of Accounting and Finance; Financial Research Network (FIRN)
Lancaster University Management School
January 11, 2014
We re-examine the association between corporate governance and disclosures reported by Beekes and Brown (2006), using an extended time series of Australian data. Since the ASX corporate governance guidelines took effect in 2003, firms generally have increased their disclosure frequency and demonstrated an improvement in the timeliness of bad news relative to good news, indicating a levelling of disclosure practices and greater transparency. Nonetheless, better governed firms still make more disclosures, they are more balanced with respect to good and bad news, and their shares are priced more efficiently. Changes to disclosure laws have also influenced company practices.
Keywords: Corporate governance, Disclosure frequency, Price discovery, Timeliness
JEL Classification: G30, G38, M40working papers series
Date posted: September 1, 2012 ; Last revised: January 24, 2014
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