Ownership Structure and Voluntary Disclosure: A Synthesis of Empirical Studies

• In Event: Financial Accounting and Reporting 1

Abstract

Abstract:

The aim of this paper is to meta-analyze the results of 80 empirical studies that investigate the association between voluntary disclosure and ownership structure. We examine whether differences in results are attributable to random error or due to the selection of disclosure types, the measurement of the ownership structure, investor protection level and region characteristics. Our results show that state, foreign and institutional ownerships are positively associated with voluntary disclosure while ownership concentration and managerial ownership are associated with reduced voluntary disclosure. The association between ownership dispersion and corporate reporting policy is mixed. Findings show also that institutional and legal characteristics moderate the association between all ownership forms and voluntary disclosure. For instance, state, foreign ownerships and ownership dispersion improve voluntary disclosure in settings characterized by high investor protection levels, while the presence of institutional ownership substitutes for the weak legal enforcement prevailing in some countries by improving corporate reporting policy. Our meta-analysis provides a map of disclosure empirical studies worldwide which allows researchers to identify the under-researched countries where there is a need to embark on a rigorous academic empirical research with respect to corporate governance and voluntary disclosure.


Keywords: Corporate Governance, Internet-based Disclosure, Intellectual Capital Disclosure, Social and Environmental Information, investor protection level and Meta-analysis.

Authors

• Mohsen Souissi, Fayetteville State University

• Hichem Khlif, University of Monastir, Tunisia

• Kamran Ahmed, Latrobe University