The simultaneous disclosure of shareholder and stakeholder corporate governance practices and their antecedents

Ernest Gyapong and Godfred Adjapong Afrifa

International Journal of Finance & Economics, 2019, vol. 24, issue 1, 260-287

Abstract: In making corporate governance (CG)‐related disclosure, firms may solely focus on shareholders or may broaden their scope of disclosure to serve other stakeholders as well. This study examines whether there are differences in the disclosure of shareholder and stakeholder CG practices. Based on a hand‐collected dataset of 1,110 firm years in South Africa and a disclosure index using 72 CG provisions from the King III report of CG, we find that the disclosure of stakeholder CG practices is higher than that of shareholder CG practices. Our evidence suggests that foreign ownership, institutional ownership, racial diversity, and gender diversity increase total voluntary disclosure. In contrast, chief executive officer (CEO) age decreases total voluntary disclosure. Also, although foreign ownership, institutional ownership, gender diversity, and racial diversity increase both shareholder and stakeholder CG disclosures, CEO age has a negative relationship with both shareholder and stakeholder CG disclosures. Further, board size reduces shareholder disclosure but not stakeholder disclosure. Our results further indicate that, ceteris paribus, the extent of shareholder CG disclosure relative to stakeholder CG disclosure is (a) lower with board size, gender diversity, and racial diversity and (b) higher with the level of institutional ownership. Our findings are robust across a raft of econometric techniques.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1002/ijfe.1661

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:ijfiec:v:24:y:2019:i:1:p:260-287

Ordering information: This journal article can be ordered from
http://jws-edcv.wile ... PRINT_ISSN=1076-9307

Access Statistics for this article

International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley

More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().