Download this Paper Open PDF in Browser

A Case Study of Voluntary Disclosure by Chinese Enterprises

Asian Journal of Finance & Accounting, Vol. 1, No. 2, 2009

28 Pages Posted: 25 Jul 2011  

Chun Yip Yuen

University of Macau - Faculty of Business Administration

Ming Liu

Hong Kong Baptist University (HKBU) - Department of Accountancy & Law

Xu Zhang

University of Macau

Chan Lyu

Macau University of Science and Technology

Date Written: April 30, 2008

Abstract

This study examines the impact of ownership features, corporate governance mechanisms, and firm-specific characteristics on the voluntary disclosure provided by publicly-listed companies on the Shanghai Stock Exchange in China. The ownership structure features and corporate governance mechanisms include (1) concentration of ownership; (2) ownership by state and state-related institutions; (3) individual ownership; (4) the chief executive officer is also the chairman of the board of directors; (5) board independence, and (6) the existence of an audit committee. The firm-specific characteristics are (1) firm size; (2) leverage; (3) profitability, and; (4) type of industry. With the use of a relative disclosure index for measuring the voluntary disclosure level, our results indicate that individual ownership, the existence of an audit committee, firm size, and leverage, including board structure and functioning, employee information, director‟s remuneration, the presence of an audit committee, related party transactions, and stakeholders‟ interests, are significantly related to the extent of voluntary disclosure. This study provides empirical evidence for Chinese policy makers and regulators to improve corporate governance mechanisms and transparency of publicly-listed companies. The findings also contribute to an understanding of disclosure behavior among former wholly state-owned enterprises during the privatization process in China.

Keywords: Voluntary disclosure, Corporate governance, Audit committee, Disclosure index, Firm-specific characteristic

JEL Classification: M40, M41, M48

Suggested Citation

Yuen, Chun Yip and Liu, Ming and Zhang, Xu and Lyu, Chan, A Case Study of Voluntary Disclosure by Chinese Enterprises (April 30, 2008). Asian Journal of Finance & Accounting, Vol. 1, No. 2, 2009. Available at SSRN: https://ssrn.com/abstract=1894570

Chun Yuen (Contact Author)

University of Macau - Faculty of Business Administration ( email )

Macau

Ming Liu

Hong Kong Baptist University (HKBU) - Department of Accountancy & Law ( email )

Kowloon Tong, Kowloon
Hong Kong

Xu Zhang

University of Macau ( email )

Macau

Chan Lyu

Macau University of Science and Technology ( email )

Avenida Wai Long
Taipa
Macau

Paper statistics

Downloads
298
Rank
86,540
Abstract Views
1,379