Corporate Governance and Transparency in Japan

59 Pages Posted: 1 Jul 2011 Last revised: 12 Aug 2019

See all articles by Hiroyuki Aman

Hiroyuki Aman

Kwansei Gakuin University

Wendy Beekes

Lancaster University - Department of Accounting and Finance

Philip R. Brown

UWA Business School, M250; Financial Research Network (FIRN)

Date Written: August 12, 2019

Abstract

We examine whether the quality rating of a listed company’s corporate governance, in Japan, is related to its equity market transparency. Our data include disclosures and returns for over 1,700 firms for ten years ending 31 July 2013. We find firms with better corporate governance make more frequent disclosures. Examining good and bad news separately, we find better-governed firms make more frequent and timelier disclosures of good news, and their share prices reflect that news faster. However, we do not find the same results for bad news, which may help Japan’s corporate regulators as they focus their future efforts.

Keywords: Corporate Governance; Transparency; Disclosures; Price Discovery; Timeliness

JEL Classification: C26; G34; G39

Suggested Citation

Aman, Hiroyuki and Beekes, Wendy and Brown, Philip R., Corporate Governance and Transparency in Japan (August 12, 2019). Available at SSRN: https://ssrn.com/abstract=1874611 or http://dx.doi.org/10.2139/ssrn.1874611

Hiroyuki Aman

Kwansei Gakuin University ( email )

Uegahara
Nishinomiya, Hyogo 662-8501
Japan
+81-798-54-6343 (Phone)

Wendy Beekes (Contact Author)

Lancaster University - Department of Accounting and Finance ( email )

Lancaster LA1 4YX
United Kingdom
++44 (0)1524 593623 (Phone)

Philip R. Brown

UWA Business School, M250 ( email )

Crawley, Western Australia 6009
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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