Relationship Analysis Between Disclosure on the Internet, Risk and Return in Latin American Companies

Abstract

Purpose: This study sought to examine the extent to which the internet it is utilized as a tool for the disclosure of corporate information, facilitating the transparency of companies in relation to their stakeholders. Originality/gap/relevance/implications: This study differs from previous as it fills a gap in the literature to relate a disclosure measure on the internet with the risk and return of companies in Latin America, since this literature is only possible to identify studies that analyze these variables independently or with respect to other factors. Key methodological aspects: The sample included 758 companies listed on four major exchanges in Latin America (Argentina, Chile, Brazil and Mexico), and its disclosure level was quantified and its relationship with risk and return were verified by Tobit regressions. Summary of key results: The results show that it is possible to observe that the issue of ADRs, the size and liquidity affect the relationship between disclosure, risk and return. Also, the disclosure has advanced in the region over the years, especially in Brazil. However, no significant differences were identified between the countries, to the point of impact relations with the risk and return of companies. Key considerations/conclusions: The main contributions are the expansion of evidence on these variables, relating them to each other in emerging markets.

Importance and Potential Advantages of Web-based Corporate Disclosure in Jordan: Current Status and Future Aspirations

“…These two results give an indicator about the importance of financial information for users. These results are also consistent with the findings of prior studies that investigated the actual web-based disclosure practices (e.g., Marston, 2003;Lodhia et al, 2004;Fuertes-Callén et al, 2014;Çalışkan & Güler, 2014;Khan, 2016;Ferreira & Martins, 2017). The users are also interested in the board of director information, which ranked fourth with a mean of 4.3551.…”

“…Thus, other studies that found the web-based disclosure for financial information is dominants may support our result (e.g., Çalışkan & Güler, 2014;Khan, 2016;Ferreira & Martins, 2017).…”

“…Investigation of prior studies on web-based disclosure practices revealed many notable remarks. First, there was inconsistency in the disclosure pattern even at the level of a country itself (e.g., Ashbaugh et al, 1999;Dyczkowska, 2014;Ferreira & Martins, 2017;Waweru, Mangena & Riro, 2019) and at the level of the region across homogeneous countries (e.g., Ojah & Mokoaleli-Mokoteli, 2012;Al-Sartawi, 2016). Second, there was also inconsistency in the disclosure strategies followed by each company (e.g., Keliwon et al, 2014), which may justify partially the inconsistency in the online disclosure pattern.…”