Voluntary Disclosure by State-Owned Enterprises Listed on the Stock Exchange of Hong Kong
28 Pages Posted: 16 Dec 2002
Abstract
This study examines the impact of international capital market pressures on the voluntary disclosure of three types of information (strategic, financial, and non-financial) in the annual reports of former wholly state-owned People's Republic of China (PRC) enterprises, listed on the Stock Exchange of Hong Kong (SEHK). Consistent with a cost-benefit framework, we find that PRC H-Share firms disclose significantly more strategic and financial information than other SEHK firms. Additional analysis of disclosures in their home listings on the PRC exchanges, however, suggests an alternative explanation. The fact that these firms have been selected for "showcasing" in international capital markets may also play a role in our findings. While H-Share firm disclosures in the PRC also appear sensitive to management's assessment of the associated costs, the magnitude of differences across listing locations suggests that disclosure practices on the SEHK may also reflect the effects of state-encouraged disclosure policies. Our findings contribute to the understanding of disclosure behavior among former wholly state-owned enterprises and to the emerging literature on the efficacy of the privatization process.
JEL Classification: M41, M45, M47
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
International Accounting Diversity: Does it Impact Market Participants?
-
Information Needs of Individual Investors
By H. Kent Baker and John A. Haslem
-
Is There a Solid Empirical Foundation for the IASB's Draft IFRS for SMEs?
-
'Shopping Around' for Accounting Practices: The Financial Statement Presentation of French Groups
By Yuan Ding, Michael Tenenhaus, ...
-
A Comparative Study of Pricing of Audit Services in Emerging Economies
By Kamran Ahmed and Mahendra K. Goyal
-
By Vicky Cole, Diane Breesch, ...
-
Financial Rating of European Technology Companies: An International Comparison
-
Explaining the Accounting Disclosure Index of Stock Exchanges by Foreign Exchange Market Activity
By Aziz Bakay and Murad Moqbel