Voluntary Disclosure by State-Owned Enterprises Listed on the Stock Exchange of Hong Kong

28 Pages Posted: 16 Dec 2002

See all articles by Michael J. Ferguson

Michael J. Ferguson

The Chinese University of Hong Kong (CUHK) - School of Accountancy

Kevin C. K. Lam

Hang Seng Management College; The Chinese University of Hong Kong (CUHK) - School of Accountancy

Grace Meina Lee

Lingnan University

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

Ferguson, Michael John and Lam, Kevin C. K. and Lee, Grace Meina, Voluntary Disclosure by State-Owned Enterprises Listed on the Stock Exchange of Hong Kong. Journal of International Financial Management and Accounting, Vol. 13, pp. 125-152, 2002. Available at SSRN: https://ssrn.com/abstract=313468

Michael John Ferguson (Contact Author)

The Chinese University of Hong Kong (CUHK) - School of Accountancy ( email )

Shatin, N.T.
Hong Kong
+852 2609 7646 (Phone)
+852 2603 5114 (Fax)

Kevin C. K. Lam

Hang Seng Management College ( email )

Hang Shin Link
Siu Lek Yuen
Shatin, Hong Kong
China

The Chinese University of Hong Kong (CUHK) - School of Accountancy ( email )

Shatin, N.T.
Hong Kong

Grace Meina Lee

Lingnan University ( email )

135 Xingang Xi Road
Tuen Mun
Guangzhou, Guangzhou 510275
China

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