A transparency Disclosure Index measuring disclosures: Chinese listed companies
Author(s)
Author(s)
Jiang, P.
Tan, W.
Date Issued
2010
Publisher
Elsevier
Journal
Journal of Accounting and Public Policy
Volume
29
Issue
3
Start page
259
End page
280
Abstract
This study addresses the question whether transparency matters among Chinese listed companies. We construct a comprehensive scorecard, based on the OECD Principles of Corporate Governance, in order to assess the transparency of 100 major Chinese listed companies. Based on the scorecard, we construct a Transparency Index (TI) which is used to assess these major Chinese listed companies during 2004–2007. The results reveal that there is a positive and significant relation between company transparency and market valuation. When we further split the TI into Mandatory and Voluntary Disclosure Indexes, it is found that market valuation is only related to the Voluntary Disclosure Index. Finally, we find that more profitable, overseas-listed, and companies with a separate CEO and board chairman tend to disclose more on a voluntary basis.
SFU Affiliated Publication
No
Availability at SFU Library
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