Information Disclosure Ranking, Industry Production Market Competition, and Mispricing: An Empirical Analysis

Wang, Bing; Xu, Shaofeng; Ho, Kung‐Cheng; Jiang, I-Ming; Huang, Hung-Yi

doi:10.3390/su11010262

Cited by 8 publications

(5 citation statements)

References 57 publications

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“…The HHI was utilised as the market competition scale in this study, and it is one of the most commonly used variables to quantify competition. The HHI Concentration Index is used to assess the market competitiveness variable, which influences industry concentration, entry barriers, and risks to firms and managers (Wang et al, 2019), as well as threats to firms and managers (Tian & Twite, 2011). A higher HHI indicates a less competitive or stable environment.…”

Section: Measuring Market Competitionmentioning

confidence: 99%

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Le Thi Thoan,

Vo Thi Ngoc Thuy

2024

AAMJ

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This study assesses the relationship between market competition and corporate governance by analysing 562 non-financial companies listed on the Vietnamese stock market from 2010 to 2019. We used the quantitative method through oridinary least squares (OLS) robust and feasible generalised least squares (FGLS) regression to control heteroscedasticity and autocorrelation, which is suitable with panel data to test the above relationship. According to the research results, market competition has complementary and alternative effects on corporate governance, as reflected in the positive and negative effects of the variable Herfindahl-Hirschman Index (HHI), a proxy for market competition, on corporate governance. Market competition has a support impact on corporate governance, which is more evident in board size, CEO duality, and CEO ownership. In contrast, the impact of market competition substituted corporate governance and reduced the role of corporate governance, as demonstrated by the independent board members. As a result, our study provides an extended understanding of the factors affecting corporate governance, primarily based on contingency theory. Furthermore, this study provides evidence for further research in this field and identifies a number of potential solutions for investors and regulators.

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Section: Measuring Market Competitionmentioning

confidence: 99%

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Le Thi Thoan,

Vo Thi Ngoc Thuy

2024

AAMJ

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“…However, numerous other studies argue that information disclosure can reduce financing costs. Higher information disclosure quality can improve market performance and boost a firm's financial indicators (Chu et al, 2019;Wang et al, 2019). In addition to being significantly and positively correlated with company performance (Jiao, 2011), information disclosure reduces leverage risk (Pan et al, 2015), market value deviation (Zhu et al, 2020), and stock price delay risk (Gong et al, 2019) and increases accounting conservatism (Shen et al, 2021) and stock liquidity (Schoenfeld, 2017).…”

Section: Literature Reviewmentioning

confidence: 99%

Information disclosure ratings and managerial short-termism: An empirical investigation of the Chinese stock market

Huang

Liu

2021

Int Entrep Manag J

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Information asymmetry between managers and outside investors creates agency problems and impedes efficient capital allocation. Information disclosure is critical in alleviating information asymmetry in capital markets. This study investigates the effect of information asymmetry on managerial short-termism by examining information disclosure ratings (IDRs). Using real earnings management as a proxy for managerial short-termism, our analysis of a sample of Chinese A-share companies during 2001-2018 indicates that high IDRs mitigate managerial short-termism. The results also indicate that the effect of IDRs in reducing managerial short-termism is driven mainly by stock liquidity. This conclusion holds after consideration of endogeneity and application of two-stage least-squares and generalized method of moments methods, adjustment of the definition of IDRs, consideration of alternative proxies for managerial short-termism, and control for firm characteristics that might affect the extent of managerial short-termism. This study also examines the effects within three subsamples: companies listed on the Shenzhen Stock Exchange main board, small and medium enterprise board, and growth enterprise market board. IDRs substantially reduce managerial short-termism among firms listed on all three boards. These findings indicate that enterprises have corrected previous internal governance problems, and IDRs have helped to improve internal governance through stock liquidity. Therefore, external supervision also helps to reduce the agency problem of managerial short-termism.

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“…The research was based on information disclosure and transparency which is a narrower aspect of corporate governance and the results showed that the concentration of ownership could be harmful to the minority shareholders as it decreases the information transparency and disclosure (Yasser, Mamun, & Ahmed 2016). In short, the company which is owned and managed at the same time by a single individual can reduce the level of information transparency and hence reduces the market capitalization (Wang et al 2019). The studies suggest that the Securities and Exchange Commission of Pakistan (SECP) should encourage the firms to disclose more information than just the mandatory requirements in order to make the current investors feel more protected and attract the potential investors.…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

The Impact of Transparency and Disclosure on Stock Market Capitalization Through the Dividend Yield Eidolon

Khan

Siddiqui

Fayyaz

2020

IJMRES

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Purpose: The paper aims to access the impact of financial transparency and disclosure on stock market capitalization. The financial transparency and disclosure measure the extent to which the firms have open firm-specific information for the investors. More transparency leads to strong investor protection. Design/methodology: The study has been conducted on the Pakistan Stock Exchange from period 2008 to 2017. Descriptive Statistics, Correlation, and Regression Analysis have been used to find out the impact of the above-mentioned variables on the Stock market Capitalization. Findings: The results support our hypothesis that information disclosure and strength of investor protection has a positive significant impact on market capitalization. Research Limitation: While our study focuses on the significance of information disclosure and transparency, it does not measure the quality and accuracy of the information disclosed. Practical Implication: The results might be of interest to potential investors who will be able to diversify their investment in a way that minimizes risks based on the disclosure practices of the firms. Originality/value: The research contributes to the finance literature by finding out the impact of information disclosure on stock market capitalization in the Pakistan Stock Exchange on recent data.

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Information Disclosure Ranking, Industry Production Market Competition, and Mispricing: An Empirical Analysis

Cited by 8 publications

References 57 publications

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Corporate Governance in Listed Firms: Does Market Competition Make a Difference?

Information disclosure ratings and managerial short-termism: An empirical investigation of the Chinese stock market

The Impact of Transparency and Disclosure on Stock Market Capitalization Through the Dividend Yield Eidolon

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