Corporate Governance and Disclosure Quality: Evidence from the Listed Non-Financial Firms of Pakistan
Syed Usman Qadri1*, Ye Chengang2, Muhammad Farooq Jamil3, Safwan Qadri4
Citation : Syed Usman Qadri,et.al, Corporate Governance and Disclosure Quality: Evidence from the Listed Non-Financial Firms of Pakistan International Journal of Managerial Studies and Research 2018 , 6(11) : 116-127
This study intends to investigate the relationship between corporate governance and disclosure quality. The study uses disclosure index to find out the firm's disclosure quality. For this purpose a sample of eighty firms listed on Karachi Stock Exchange (KSE) for the period of ten years i.e. 2005 to 2014 has been considered. Corporate governance variables tested for this study are the audit committee independence, board size, board independence, CEO duality, family ownership, institutional ownership. To measure the disclosure quality of the individual firms, the study has used the index score and it is checked against the information disclosed in the annual reports. Panel data estimation models have been employed for the purpose of analysis. The results reveal that better disclosure quality of the annual reports in non-financial sector can be achieved by having higher proportion of independent non-executive directors, separate board leadership structure, larger board size, higher the institutional ownership and lower ownership by family members in case of Pakistan.