Web-Based Disclosure About Value Creation Processes: A Monitoring Perspective

Authors


  • We acknowledge financial support from the Social Sciences and Humanities Research Council of Canada and Fonds Québecois de recherche sur la société et la culture (FQRSC), l'Autorité des marchés financiers (Québec), PriceWaterhouseCoopers and KPMG.

Denis Cormier (cormier.denis@uqam.ca) is a Professor in the School of Management, University of Quebec at Montreal (ESG UQÃM); Walter Aerts a Professor in the Department of Accounting and Finance, University of Antwerp; Marie-Josée Ledoux a Professor in the School of Management, University of Quebec at Montreal; and Michel Magnan a Professor in the Department of Accountancy, Concordia University.

Abstract

Adopting a monitoring perspective, this study aims to explain how and why firms provide web-based disclosure about their value creation and its underlying processes. We rely on the balanced scoreboard approach to measure disclosure. Our results suggest that costs incurred by capital markets' participants as well as monitoring by the board and the media drive disclosure. Moreover, we argue and document that a firm's disclosure is actually a part of its governance configuration and influences some board processes.

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