The authors are respectively from Lancaster University; and the Universities of New South Wales and Western Australia. They gratefully acknowledge the comments of Jeff Coulton, Tom Smith, Stephen Taylor, Martin Walker, Steve Young and an anonymous referee, as well as participants in research workshops at ANU, Lancaster, Macquarie, Monash and UNSW. The paper has also benefited from comments received at the JBFA Conference in May 2005, and at the 2005 annual meetings of the American Accounting Association, the Accounting and Finance Association of Australia and New Zealand, and the European Accounting Association. The authors are especially indebted to Jim Psaros for providing corporate governance ratings data.
Do Better-Governed Australian Firms Make More Informative Disclosures?
Article first published online: 19 MAY 2006
Journal of Business Finance & Accounting
Volume 33, Issue 3-4, pages 422–450, April/May 2006
How to Cite
Beekes, W. and Brown, P. (2006), Do Better-Governed Australian Firms Make More Informative Disclosures?. Journal of Business Finance & Accounting, 33: 422–450. doi: 10.1111/j.1468-5957.2006.00614.x
- Issue published online: 19 MAY 2006
- Article first published online: 19 MAY 2006
- corporate governance quality;
- disclosure frequency;
- analysts’ forecasts;
- price discovery;
Abstract: We investigate whether and if so, how, corporate governance ‘quality’1 is related to the information flows from a company and how the share 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 six indicators of informativeness. They include document counts, properties of analysts’ forecasts and a ‘timeliness’ metric, in the spirit of Ball and Brown (1968), that reflects 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.