標題: Corporate governance and equity liquidity: analysis of S&P transparency and disclosure rankings
作者: Chen, Wei-Peng
Chung, Huimin
Lee, Chengfew
Liao, Wei-Li
管理科學系
Department of Management Science
關鍵字: corporate governance;transparency and disclosure;asymmetric information costs;liquidity
公開日期: 1-七月-2007
摘要: This paper sets out to investigate the effects of disclosure, and other corporate governance mechanisms, on equity liquidity, arguing that those companies adopting poor information transparency and disclosure practices will experience serious information asymmetry. Since poor corporate governance leads to greater information asymmetry, liquidity providers will incur relatively higher adverse information risks and will therefore offer higher information asymmetry components in their effective bid-ask spreads. The Transparency and Disclosure (T&D) rankings of the individual stocks on the S&P 500 index are employed to examine whether firms with greater T&D rankings have lower information asymmetry components and lower stock spreads. Our results reveal that the economic costs of equity liquidity, i.e. the effective spread and the quoted half-spread, are greater for those companies with poor information transparency and disclosure practices.
URI: http://dx.doi.org/10.1111/j.1467-8683.2007.00594.x
http://hdl.handle.net/11536/14325
ISSN: 0964-8410
DOI: 10.1111/j.1467-8683.2007.00594.x
期刊: CORPORATE GOVERNANCE-AN INTERNATIONAL REVIEW
Volume: 15
Issue: 4
起始頁: 644
結束頁: 660
顯示於類別:期刊論文


文件中的檔案:

  1. 000248226600012.pdf