A study of association between corporate governance structure and information disclosure

Authors: Jui-Pin Chen; Chung-Yuan Hsu;

Journal: Chia Da Management Review. Dec. 2007, 27(2): 55-109.

Keywords: Information Disclosure; Corporate Governance Structure; Ultimate Controlling Shareholders

Abstract:
Information disclosure is useful in reducing information asymmetry and plays a major role in the cooperation government. The purpose of this study is to explore the relationship between the level of information disclosure and corporate governance structure. The results support the following hypotheses. First, the higher the level of information disclosure is, the higher the investment from investment institution. Second, the level of information disclosure decreases if the divergence between the ratio of board seat and cash flow rights controlled by the ultimate controlling shareholders increases. Third, the level of information disclosure is lower with the number of directors when the number is over seven. Finally, the level of information disclosure increases if percentage of independent board member increases.