Work

Determinants and features of voluntary disclosure in the Chinese stock market

Year: 2013

Type: article

Abstract: This paper offers in-depth analysis of the determinants and features of voluntary disclosure based on information in the annual reports of 1066 Chinese firms listed on the Shanghai and Shenzhen Stock Exchanges. This extensive sample represents about 80% of all public companies in China. Our findings suggest that voluntary disclosure in China is positively related to firm size, leverage, assets-in-place, and return on equity and is negatively related to auditor type and the level of maturity or sophistication of the intermediary and legal environments. We also find some evidence to suggest a quadratic convex association between state ownership and voluntary disclosure. However, our analysis provides no evidence that extensive disclosure benefits public companies in China in the form of a lower cost of equity.

Source: China Journal of Accounting Research

DOI: 10.1016/j.cjar.2013.04.001

Authors: Yang Lan, Lili Wang, Xueyong Zhang

Institutions: Tsinghua University, Central University of Finance and Economics

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,800

Funders: National Natural Science Foundation of China, Central University of Finance and Economics