Statutory-backed continuous disclosure regime and corporate disclosure behaviour : does corporate governance matter?

Chapple, Larelle June & Truong, Phuong (2013) Statutory-backed continuous disclosure regime and corporate disclosure behaviour : does corporate governance matter? In EAA Annual Congress 2013, 7-9 May 2013, Paris. (Unpublished)

Abstract

Since 1 December 2002, the New Zealand Exchange’s (NZX) continuous disclosure listing rules have operated with statutory backing. To test the effectiveness of the new corporate disclosure regime, we compare the change in quantity of market announcements (overall, non-routine, non-procedural and external) released to the NZX before and after the introduction of statutory backing. We also extend our study in investigating whether the effectiveness of the new corporate disclosure regime is diminished or augmented by corporate governance mechanisms including board size, providing separate roles for CEO and Chairman, board independence, board gender diversity and audit committee independence. Our findings provide a qualified support for the effectiveness of the new corporate disclosure regime regarding the quantity of market disclosures. There is strong evidence that the effectiveness of the new corporate disclosure regime was augmented by providing separate roles for CEO and Chairman, board gender diversity and audit committee independence, and diminished by board size. In addition, there is significant evidence that share price queries do impact corporate disclosure behaviour and this impact is significantly influenced by corporate governance mechanisms. Our findings provide important implications for corporate regulators in their quest for a superior disclosure regime.

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ID Code: 60588
Item Type: Conference Paper
Refereed: No
Keywords: continuous disclosure, corporate governance, market announcements
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100) > Accounting Auditing and Accountability not elsewhere classified (150199)
Australian and New Zealand Standard Research Classification > LAW AND LEGAL STUDIES (180000) > LAW (180100) > Corporations and Associations Law (180109)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2013 please consult the authors
Deposited On: 04 Jun 2013 01:41
Last Modified: 04 Jun 2013 02:14

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