Do Better-Governed Australian Firms Make More Informative Disclosures?

47 Pages Posted: 2 Feb 2005

See all articles by Wendy Beekes

Wendy Beekes

Lancaster University - Department of Accounting and Finance

Philip R. Brown

UWA Business School, M250; Financial Research Network (FIRN)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2005

Abstract

We investigate whether and if so, how, corporate governance quality is related to the information flows from a company and how the stock market and its agents respond. Specifically, we study links between the quality of a firm's corporate governance (CGQ) and the informativeness of its disclosures. We employ a novel, intra-year timeliness metric, in the spirit of Ball and Brown (1968) and Brown et al. (1999), to capture the average speed of price discovery throughout the year. Our results suggest the answer to our question is Yes: better-governed firms do make more informative disclosures.

Keywords: Corporate governance quality, Disclosure frequency, Analysts' forecasts, Price discovery, Timeliness

JEL Classification: G34, G38, M41, M45

Suggested Citation

Beekes, Wendy and Brown, Philip R., Do Better-Governed Australian Firms Make More Informative Disclosures? (May 2005). Available at SSRN: https://ssrn.com/abstract=650062 or http://dx.doi.org/10.2139/ssrn.650062

Wendy Beekes (Contact Author)

Lancaster University - Department of Accounting and Finance ( email )

Lancaster LA1 4YX
United Kingdom
++44 (0)1524 593623 (Phone)

Philip R. Brown

UWA Business School, M250 ( email )

Crawley, Western Australia 6009
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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