Voluntary Disclosure by State‐owned Enterprises Listed on the Stock Exchange of Hong Kong

Abstract

This study examines the impact of international capital market pressures on the voluntary disclosure of three types of information (strategic, financial, and non-financial) in the annual reports of former wholly state-owned People's Republic of China (PRC) enterprises, listed on the Stock Exchange of Hong Kong (SEHK). Consistent with a cost-benefit framework, we find that PRC H-Share firms disclose significantly more strategic and financial information than other SEHK firms. Additional analysis of disclosures in their home listings on the PRC exchanges, however, suggests an alternative explanation. The fact that these firms have been selected for "showcasing" in international capital markets may also play a role in our findings. While H-Share firm disclosures in the PRC also appear sensitive to management's assessment of the associated costs, the magnitude of differences across listing locations suggests that disclosure practices on the SEHK may also reflect the effects of state-encouraged disclosure policies. Our findings contribute to the understanding of disclosure behavior among former wholly state-owned enterprises and to the emerging literature on the efficacy of the privatization process.

Corporate Governance and Voluntary Disclosure of Interim Financial Reporting in Jordan

“…Also, as reported by Haniffa and Cooke (2002), foreign owners appear to need more disclosure, owing to the fact that the foreign owners' management needs monitoring. Then, as far as companies are concerned, those that release more disclosure appear to be registered on a number of stock exchanges (Ferguson et al, 2002).…”

Compliance with International Financial Reporting Standards by Listed Companies in Ghana

“…Ferguson, Lam and Lee (2002), suggested that companies in identifiable, highly competitive industries might disclose less information to prevent loss from the leakage of proprietary information. Malone et al (1993) and Wallace, Naser, and Mora (1994) also argued that the adoption of industry related practices may lead to varied levels of disclosure on similar items in financial reports of companies in different industries.…”

Perpetuating traditional influences: Voluntary disclosure in Malaysia following the economic crisis

“…Voluntary disclosure in annual reports has been the subject of a great deal of empirical research (e.g., Chau & Gray, 2002;Chow & Wong-Boren, 1987;Cooke, 1989Cooke, , 1991Eng & Mak, 2003;Ferguson, Lam, & Lee, 2002;Firth, 1979;Haniffa & Cooke, 2002;Ho & Wong, 2001a;Hossain, Tan, & Adams, 1994;Hossain, Perera, & Rahman, 1995;Inchausti, 1997;McNally, Eng, & Hasseldine, 1982;Raffournier, 1995;Wallace, Naser, & Mora, 1994;Wallace & Naser, 1995).…”