Journal ArticleDOI
Transparency and disclosure scores and their determinants in the Istanbul Stock Exchange
Mine Hatice Aksu,Arman Kosedag +1 more
TLDR
In this paper, the authors evaluate the T&D practices of the 52 largest and most liquid firms in the Istanbul Stock Exchange (ISE), based on their English and local language annual reports and websites.Abstract:
Recent financial reporting and auditing scandals on both sides of the Atlantic have led to a global realization of the importance of sound corporate governance (CG) practices in alleviating the agency problems in the corporate form of business and for efficient allocation of capital in international markets. Transparency and disclosure (T&D) practices followed by firms are an important component and a leading indicator of CG quality. Transparent and full-disclosure of information is especially vital for Turkey where external capital is necessary to sustain the high growth rate and the biggest agency problem centers on asymmetric information and expropriation by majority shareholders. We collaborate with Standard and Poor’s (S&P) and base our survey on their scoring methodology, a customized version of the 98 desirable T&D attributes they used in several other countries, and their classification of the attributes into three categories: ownership structure and investor relations, financial transparency and information disclosure, and board and management structures and processes. We evaluate the T&D practices of the 52 largest and most liquid firms in the Istanbul Stock Exchange (ISE), based on their English and local language annual reports and websites. Our rankings provide a first time, objective assessment of the corporate disclosure practices of ISE firms and uncover that they are, at best, moderate and vary with respect to the three sub-categories of T&D. We also consider a simple model that sequentially links agency problems to CG/T&D mechanisms in place which, in turn impact firm-level and economy-wide financial performance. Concentrating on the causal side of the model -- the determinants of T&D scores --, we provide out-of-sample evidence that among the commonly used proxies for agency conflicts, firm size, financial performance, market-to-book equity best explain the variation in T&D scores in the ISE. While our results provide considerable support for prior findings in developed markets, they also shed light on how specific agency problems faced by the ISE firms impact their T&D scores.read more
Citations
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Journal ArticleDOI
Determinants of sustainability reporting and its impact on firm value: Evidence from the emerging market of Turkey
Cemil Kuzey,Ali Uyar +1 more
TL;DR: In this paper, the authors investigated the factors that impact sustainability reporting, including the adoption of assurance statements in sustainability reports, and the application levels of sustainability reports in Turkish publicly traded companies.
Journal ArticleDOI
Corporate Governance and Intellectual Capital Disclosure
TL;DR: In this article, the internal mechanisms of corporate governance (board of directors and ownership structure), which influence voluntary disclosure of intangibles, were analyzed and found that an increase in institutional investor shareholding has a negative effect on voluntary disclosure, supporting the hypothesis of entrenchment, whereas an excessive ownership by institutional investors may have adverse effects on strategic disclosure decisions.
Journal ArticleDOI
Corporate governance and voluntary disclosure in Kuwait
TL;DR: In this paper, the authors investigated the relationship between corporate governance characteristics and voluntary disclosure in the annual reports of 170 Kuwaiti companies listed on the Kuwait Stock Exchange in 2007 and found that only the existence of a voluntary audit committee is significantly and positively related to the extent of voluntary disclosure.
Journal ArticleDOI
Association between firm characteristics and corporate voluntary disclosure: evidence from Turkish listed companies
TL;DR: In this article, the authors investigated the factors that impact voluntary information disclosure level of Turkish manufacturing companies listed in the Borsa Istanbul (BIST) for the year 2010 and found evidence of a positive association between the voluntary disclosure level and the variables such as firm size, auditing firm size and proportion of independent directors on the board, institutional/corporate ownership.
Journal ArticleDOI
Value relevance of voluntary disclosure: evidence from Turkish firms
Ali Uyar,Merve Kilic +1 more
TL;DR: In this paper, the authors examined whether or not listed Turkish companies' voluntary disclosure practices are value-relevant in the capital market, and found that the more information firms disclose voluntarily, the higher value they have in the eyes of investors.
References
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Journal ArticleDOI
Theory of the firm: Managerial behavior, agency costs and ownership structure
TL;DR: In this article, the authors draw on recent progress in the theory of property rights, agency, and finance to develop a theory of ownership structure for the firm, which casts new light on and has implications for a variety of issues in the professional and popular literature.
Journal ArticleDOI
Common risk factors in the returns on stocks and bonds
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this article, the authors identify five common risk factors in the returns on stocks and bonds, including three stock-market factors: an overall market factor and factors related to firm size and book-to-market equity.
Posted Content
Law and Finance
Rafael La Porta,Rafael La Porta,Florencio Lopez de Silanes,Florencio Lopez de Silanes,Andrei Shleifer,Andrei Shleifer,Robert W. Vishny,Robert W. Vishny +7 more
TL;DR: This paper examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common law countries generally have the best, and French civil law countries the worst, legal protections of investors.
Posted Content
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.
Journal ArticleDOI
Law and Finance
TL;DR: In this article, the authors examined legal rules covering protection of corporate shareholders and creditors, the origin of these rules, and the quality of their enforcement in 49 countries and found that common-law countries generally have the strongest, and French civil law countries the weakest, legal protections of investors, with German- and Scandinavian-civil law countries located in the middle.
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