Corporate Governance: Factors Influencing Voluntary Disclosure by Publicly Traded Canadian Firms

Posted: 23 Dec 2002

See all articles by Bruce J. McConomy

Bruce J. McConomy

Wilfrid Laurier University

Merridee L. Bujaki

Carleton University - Eric Sprott School of Business

Abstract

We report on the comprehensiveness of voluntary corporate governance disclosures in the annual reports and management information circulars of Toronto Stock Exchange (TSE) firms. We focus on disclosure of the corporate governance practices implemented by our sample of TSE 300 firms vis-a-vis the 14 guidelines set out in the TSE's report on corporate governance "Where Were the Directors?" Our analysis indicates that only a very few firms disclose that they have fully implemented the TSE guidelines, and that the extent of disclosure of corporate governance practices implemented varies widely among the firms. We then test factors associated with the comprehensiveness of such disclosures and the choice of disclosure medium using simultaneous equations multivariate analysis. We also assess the influence of publicized corporate governance failures on disclosure. Overall, our results suggest that the choices of disclosure medium and the extent of disclosure are made concurrently, and are influenced by the strategic considerations of management.

Keywords: corporate governance, Canadian, disclosure management, corporate governance failures

JEL Classification: G28, G34, M41, M45

Suggested Citation

McConomy, Bruce J. and Bujaki, Merridee L., Corporate Governance: Factors Influencing Voluntary Disclosure by Publicly Traded Canadian Firms. Canadian Accounting Perspectives, Vol. 1, No. 2, Fall 2002. Available at SSRN: https://ssrn.com/abstract=352440

Bruce J. McConomy (Contact Author)

Wilfrid Laurier University ( email )

Waterloo, Ontario N2L 3C5
Canada
519-884-0710, x2890 (Phone)
519-884-0201 (Fax)

Merridee L. Bujaki

Carleton University - Eric Sprott School of Business ( email )

1125 Colonel By Drive
Ottawa, Ontario K1S SB6
Canada
613-520-2600 x2774 (Phone)

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