Corporate Governance, External Control, Public Governance, and Environmental Information Transparency: Evidence from Emerging Markets

Jacoby, G., Liu, M., Wang, Y., Wu, Z., & Zhang, Y. (2019). Corporate Governance, External Control, Public Governance, and Environmental Information Transparency: Evidence from Emerging Markets. Journal of International Financial Markets, Institutions, & Money, 58, 269-283.

48 Pages Posted: 14 Mar 2019

See all articles by Gady Jacoby

Gady Jacoby

University of Manitoba - Department of Accounting and Finance; Seton Hall University

Mingzhi Liu

University of Manitoba - Asper School of Business

Yefeng Wang

University of Manitoba - Department of Business Administration

Zhenyu Wu

University of Manitoba

Ying Zhang

University of Manitoba - Department of Accounting and Finance

Date Written: February 1, 2019

Abstract

Using a sample of 4,195 observations from 19 emerging markets, we investigate how internal corporate governance, external monitoring, and legal and business environment jointly affect a firm’s managerial effectiveness in environmental information transparency in an international setting. The empirical results show that in emerging economies, firms with stronger corporate governance mechanisms tend to adopt an external control strategy in order to mitigate owner-manager agency conflicts. Furthermore, internal corporate governance mechanisms are found to directly increase firm transparency concerning environmental damage and to indirectly do so through external control device. The legal and business environments of countries in which firms operate moderate these relationships.

Keywords: Corporate Governance, External Control, Legal Environment, Information Transparency

JEL Classification: G32; M48

Suggested Citation

Jacoby, Gady and Liu, Mingzhi and Wang, Yefeng and Wu, Zhenyu and Zhang, Ying, Corporate Governance, External Control, Public Governance, and Environmental Information Transparency: Evidence from Emerging Markets (February 1, 2019). Jacoby, G., Liu, M., Wang, Y., Wu, Z., & Zhang, Y. (2019). Corporate Governance, External Control, Public Governance, and Environmental Information Transparency: Evidence from Emerging Markets. Journal of International Financial Markets, Institutions, & Money, 58, 269-283.. Available at SSRN: https://ssrn.com/abstract=3340934

Gady Jacoby

University of Manitoba - Department of Accounting and Finance

Faculty of Management
Winnipeg, MB R3T 5V4
Canada

Seton Hall University ( email )

400 S Orange Avenue
South Orange, NJ 07079
United States

Mingzhi Liu

University of Manitoba - Asper School of Business ( email )

460-181 Freedman Crescent
Winnipeg, Manitoba R3T 5V5
Canada
204-474-6847 (Phone)

HOME PAGE: http://umanitoba.ca/faculties/management/faculty_staff/academic_professors/mingzhi-liu.html

Yefeng Wang (Contact Author)

University of Manitoba - Department of Business Administration ( email )

Winnipeg, Manitoba R3T 5V4
Canada

Zhenyu Wu

University of Manitoba ( email )

181 Freedman Crescent
Winnipeg, Manitoba R3T 5V4
Canada

Ying Zhang

University of Manitoba - Department of Accounting and Finance ( email )

Faculty of Management
Winnipeg, MB R3T 5V4
Canada

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