Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa

 

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dc.contributor.advisor Uliana, Enrico en_ZA
dc.contributor.author Nzibonera, Eric en_ZA
dc.date.accessioned 2018-01-25T14:11:25Z
dc.date.available 2018-01-25T14:11:25Z
dc.date.issued 2017 en_ZA
dc.identifier.citation Nzibonera, E. 2017. Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/27026
dc.description.abstract The purpose of the study is to examine the relationship between corporate governance and disclosure of corporate information by listed companies in developing economies. A comparative study was carried out covering listed companies in South Africa, East Africa and Nigeria. The study is based on the agency theory which asserts that enhanced disclosure is one of the fundamental goals of a company's reporting system aimed at reducing agency costs and information asymmetries between shareholders and managers, hence a tenet of any effective governance system. Although corporate disclosure provides a channel through which shareholders obtain valuable information to make investment decisions, prior studies reported mixed empirical evidence on the role of corporate governance in enhancing corporate disclosure. Furthermore, empirical evidence from Sub Saharan Africa and developing economies in general remains scanty. Despite the fact that corporate governance systems have been widely used in strengthening the quality of financial reporting and disclosure, several corporate scandals and failures have continued to occur around the globe and the efficacy of corporate governance on disclosure activities in preventing managers from misappropriating corporate resources remains an empirical question. A comprehensive literature review revealed six corporate governance attributes (CEO non-duality, board size, board composition, composition of audit committees, block and director share ownership) and three control variables (Firm size, leverage, and profitability) that may have a significant influence on corporate disclosure. Corporate disclosure was categorized into disclosure of financial and non-financial information. Data was collected from annual reports of non-financial listed companies on selected securities exchanges in Sub Saharan Africa for the period 2010 to 2013. A comparative panel data analysis was then carried out using STATA MP Version 13, to obtain Random-Effects Regression models which were used to examine the relationship between corporate governance and corporate disclosure. Overall, the findings revealed that CEO non-duality, board size and board composition have a positive significant effect on corporate disclosure, while the effect of block and director share ownership is negative. The study concluded that for effective disclosure of information in developing economies, companies should minimize block and director share ownership, separate roles of chief executive officers and chairpersons of board of directors, increase board size and ensure that there is a higher proportion of non- executive directors on boards. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Corporate Governance en_ZA
dc.subject.other Corporate Disclosure en_ZA
dc.title Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa en_ZA
dc.type Doctoral Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department Department of Finance and Tax en_ZA
dc.type.qualificationlevel Doctoral
dc.type.qualificationname PhD en_ZA
uct.type.filetype Text
uct.type.filetype Image
dc.identifier.apacitation Nzibonera, E. (2017). <i>Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax. Retrieved from http://hdl.handle.net/11427/27026 en_ZA
dc.identifier.chicagocitation Nzibonera, Eric. <i>"Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa."</i> Thesis., University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2017. http://hdl.handle.net/11427/27026 en_ZA
dc.identifier.vancouvercitation Nzibonera E. Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa. [Thesis]. University of Cape Town ,Faculty of Commerce ,Department of Finance and Tax, 2017 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/27026 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Nzibonera, Eric AB - The purpose of the study is to examine the relationship between corporate governance and disclosure of corporate information by listed companies in developing economies. A comparative study was carried out covering listed companies in South Africa, East Africa and Nigeria. The study is based on the agency theory which asserts that enhanced disclosure is one of the fundamental goals of a company's reporting system aimed at reducing agency costs and information asymmetries between shareholders and managers, hence a tenet of any effective governance system. Although corporate disclosure provides a channel through which shareholders obtain valuable information to make investment decisions, prior studies reported mixed empirical evidence on the role of corporate governance in enhancing corporate disclosure. Furthermore, empirical evidence from Sub Saharan Africa and developing economies in general remains scanty. Despite the fact that corporate governance systems have been widely used in strengthening the quality of financial reporting and disclosure, several corporate scandals and failures have continued to occur around the globe and the efficacy of corporate governance on disclosure activities in preventing managers from misappropriating corporate resources remains an empirical question. A comprehensive literature review revealed six corporate governance attributes (CEO non-duality, board size, board composition, composition of audit committees, block and director share ownership) and three control variables (Firm size, leverage, and profitability) that may have a significant influence on corporate disclosure. Corporate disclosure was categorized into disclosure of financial and non-financial information. Data was collected from annual reports of non-financial listed companies on selected securities exchanges in Sub Saharan Africa for the period 2010 to 2013. A comparative panel data analysis was then carried out using STATA MP Version 13, to obtain Random-Effects Regression models which were used to examine the relationship between corporate governance and corporate disclosure. Overall, the findings revealed that CEO non-duality, board size and board composition have a positive significant effect on corporate disclosure, while the effect of block and director share ownership is negative. The study concluded that for effective disclosure of information in developing economies, companies should minimize block and director share ownership, separate roles of chief executive officers and chairpersons of board of directors, increase board size and ensure that there is a higher proportion of non- executive directors on boards. DA - 2017 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2017 T1 - Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa TI - Efficacy of corporate governance on corporate disclosure in developing economies: A comparative study of companies listed on selected stock markets in Sub Saharan Africa UR - http://hdl.handle.net/11427/27026 ER - en_ZA


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