Disclosure Quality on the Polish Alternative Investment Market Newconnect

Abstract

Abstract:The scope of our research was to examine the relationship between disclosure quality and firms' characteristics of the issuers listed on the Polish alternative investment market NewConnect. On the basis of the sample of 200 issuers, we demonstrated that disclosure quality is only significantly and positively correlated with the firm's size and provided no evidence for relation among disclosure quality, debt ratio and issuers' listed history. Our findings support the low level of investors' relation. Issuers are not willing to help the investors to understand the reasons for such performance and refuse to give a complex picture of companies' goals, strategic success factors, investments' plan and risk management particulars. These results are consistent with our observations and we indicate the low level of issuers' corporate governance, which is characteristic for the first stage of market development, as the main reason: issuers are still learning disclosing obligations, investors adopt passive behaviour and financial investors have low significance as market participants.

Do annual reports communicate strategic issues? Insight into reporting practices of high-tech companies / Czy raporty roczne komunikują kwestie strategiczne? Wgląd w praktyki sprawozdawcze spółek wysokich technologii

“…However, the Act refers to revelation of some aspects which may be perceived as those having impacts on strategy realization. Interestingly, a corporate governance code 2 which includes a set of rules directed at 1 This tendency is not peculiar since NewConnect as an alternative investment market is dedicated to entities with small shareholder funds, where the vast majority of stock issuers would not comply with the minimum capitalization requirement on regulated stock market [Fijałkowska, Muszyński, Pauka 2014].…”