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Voluntary Disclosure by State‐owned Enterprises Listed on the Stock Exchange of Hong Kong
Author(s) -
Ferguson Michael J.,
Lam Kevin C. K.,
Lee Grace Meina
Publication year - 2002
Publication title -
journal of international financial management and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.818
H-Index - 37
eISSN - 1467-646X
pISSN - 0954-1314
DOI - 10.1111/1467-646x.00081
Subject(s) - voluntary disclosure , business , stock exchange , china , accounting , listing (finance) , capital market , state owned , stock (firearms) , financial market , finance , market economy , economics , mechanical engineering , political science , law , engineering
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 costÂbenefit 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.