Voluntary disclosure by state-owned enterprises listed on the stock exchange of Hong Kong

Michael J. Ferguson, Kevin C.K. Lam, Grace Meina Lee

Research output: Contribution to journalArticlepeer-review

153 Citations (Scopus)

Abstract

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 cost-benefit 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.

Original languageEnglish
Pages (from-to)125-152
Number of pages28
JournalJournal of International Financial Management and Accounting
Volume13
Issue number2
DOIs
Publication statusPublished - 2002

Fingerprint

Dive into the research topics of 'Voluntary disclosure by state-owned enterprises listed on the stock exchange of Hong Kong'. Together they form a unique fingerprint.

Cite this