Transparency on Corporate Governance Reporting and board of directors’ strategies

Guadalupe del Carmen Briano Turrent; Jannine Poletti-Hughes; Jonathan Williams

doi:10.21919/remef.v18.2.684

Authors

Guadalupe del Carmen Briano Turrent Universidad Autónoma de San Luis Potosí. http://orcid.org/0000-0001-8241-0385
Jannine Poletti-Hughes University of Liverpool Management School. https://orcid.org/0000-0001-5959-2141
Jonathan Williams Bangor University, Business School https://orcid.org/0000-0002-5954-2547

DOI:

https://doi.org/10.21919/remef.v18.2.684

Keywords:

Corporate Governance, Transparency, Agency Theory, Board Strategy, Latin America.

Abstract

The objective of this paper is to investigate whether the transparency on corporate governance is determined by strategies followed by the board of directors. Based on agency and asymmetric information theories, we hypothesize that strategies pertaining to changes in liquidity, investment, capital structure, innovation and board composition impact on the corporate governance disclosure. The study sample is composed by 826 Latin American firms during the period 2004-2010. A two-way cluster standard errors and GMM methods have been adopted to perform the econometric analysis. Results suggest that corporate governance disclosure is attributable to changes on firm’s decisions made by the board with respect to financial aspects and innovation. However, the impact upon transparency of board composition with regards to female directors, independence and size of boards are attributable to industry and/or country effects.

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Author Biographies

Guadalupe del Carmen Briano Turrent, Universidad Autónoma de San Luis Potosí.

Doctor of Accounting and Auditing from Universidad de Cantabria, Spain. Associate Professor in Accounting and Finance. Member of the National Research System in Mexico.

Jannine Poletti-Hughes, University of Liverpool Management School.

PhD in Economics and Related Studies from University of York. Associate Professor in Corporate Finance

Jonathan Williams, Bangor University, Business School

PhD in Economics from University of Wales, Bangor. Professor in Banking and Finance

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