Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/14563
Title: Corporate voluntary disclosure and the separation of cash flow rights from control rights.
Authors: Lee, Kin Wai.
Keywords: DRNTU::Business::Finance::Corporate governance
Issue Date: 2006
Abstract: We find that corporate voluntary disclosure is negatively associated with the separation of cash flow rights from control rights. This result is consistent with the notion that as the separation of cash flow rights from control rights increases, controlling owners have larger incentives to expropriate the wealth of minority shareholders and low corporate disclosure constitutes a mechanism to facilitate controlling owners in masking their private benefits of control. The negative association between voluntary disclosure and the separation of cash flow rights from control rights is less pronounced for firms with greater external financing needs. This result suggests that for firms with high separation of cash flow rights from control rights, those with greater external financing needs undertake higher firm-level voluntary disclosure to reduce information asymmetry. We also find that the negative association between voluntary disclosure and the separation of cash flow rights from control rights is less pronounced for firms that have a large nonmanagement shareholder. Our result supports the role of large non-management shareholder in mitigating agency problems associated with the separation of ownership and control.
URI: http://hdl.handle.net/10356/14563
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:NBS Research Reports (Staff & Graduate Students)

Files in This Item:
File Description SizeFormat 
RCC21-2004 Lee Kin Wai NBS.pdf
  Restricted Access
242.22 kBAdobe PDFView/Open

Page view(s) 5

361
checked on Sep 23, 2020

Download(s) 5

4
checked on Sep 23, 2020

Google ScholarTM

Check

Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.