The Effect of Press Visibility on Voluntary Disclosure: Country-Level Approach

Corporate Ownership and Control Journal, 11(2), pp. 72-83, 2014

Posted: 19 Dec 2014

See all articles by Maria Prokofieva

Maria Prokofieva

Victoria University - College of Business

Colin Clark

Victoria University

Date Written: March 1, 2014

Abstract

The study investigates the effect of press coverage on voluntary disclosure in the narrative sections of annual reports of Australian and Chinese listed companies. A combination of the legitimacy theory and media agenda setting theory is employed to examine their application in the context of different country-level governance mechanisms, in particularly in Anglo-Saxon (Australia) and Asian (China) economies. The study is based on a sample of 200 listed companies and employs multiple regression analyses. The findings show that press coverage is positively and significantly associated with voluntary disclosure suggesting that closer media attention increases voluntary disclosure. The effect of press coverage is mediated by country-level governance mechanisms, suggesting stronger association in countries with stronger legal enforcement mechanisms.

Keywords: Voluntary Disclosure, Media, Agenda Setting Theory, Legitimacy Theory

JEL Classification: M41

Suggested Citation

Prokofieva, Maria and Clark, Colin, The Effect of Press Visibility on Voluntary Disclosure: Country-Level Approach (March 1, 2014). Corporate Ownership and Control Journal, 11(2), pp. 72-83, 2014 , Available at SSRN: https://ssrn.com/abstract=2539104

Maria Prokofieva (Contact Author)

Victoria University - College of Business ( email )

Footscray Park
PO Box 14428
Melbourne, 8001
Australia

Colin Clark

Victoria University ( email )

Footscray Park
PO Box 14428
Melbourne, 8001
Australia

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