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The Convergence of Disclosure and Governance Practices in the World’s Largest Firms *
Author(s) -
Markarian Garen,
Parbonetti Antonio,
Previts Gary John
Publication year - 2007
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/j.1467-8683.2007.00561.x
Subject(s) - corporate governance , convergence (economics) , accounting , anglo saxon , business , control (management) , empirical evidence , mechanism (biology) , best practice , empirical research , political science , economics , finance , law , management , economic growth , philosophy , epistemology , history , classics
Many studies discuss convergence of cross‐border governance and governance‐related disclosure practices, but provide little empirical evidence to support their arguments and analysis. Our study examines the governance and disclosure practices of the world’s largest transnational firms. Using a unique dataset of 75 large firms in two time periods, 1995 and 2002, we examine both the governance practices, and disclosures regarding those governance practices, across Anglo‐Saxon and non‐Anglo‐Saxon firms. Results indicate that non‐Anglo‐Saxon firms have developed their governance practices towards promoting an independent mechanism of control, namely a mechanism that is more similar to an Anglo‐Saxon governance regime. In regard to governance‐related disclosure practices, results indicate that for both Anglo‐Saxon and non‐Anglo‐Saxon groups, disclosure practices have been evolving and converging towards more disclosures regarding governance matters.