Determinants and value relevance of corporate disclosure : Evidence from the emerging capital market of Ghana
Abstract
Purpose
The purpose of this paper is to document the determinants and value relevance of corporate disclosure and transparency on the Ghana Stock Exchange (GSE).
Design/methodology/approach
The paper employs the Fama and French model by relating firm value to firm level characteristics, with a sample of 27 firms on the GSE over a six-year period (2003-2008)
Findings
The author found positive though statistically insignificant relationship between corporate disclosure and firm value represented by market to book value ratio and negative for stock price. Consistent with the political cost, signalling, agency and economic theories of corporate disclosure, the author found firm size, financial leverage, audit quality, age and profitability to be significant firm level characteristics determining corporate disclosure in Ghana. Though the adoption of IFRS is significant, it has marginally improved disclosure, though perhaps it is observed more in breach than in compliance and practical steps must be taken to improve disclosure practice on the GSE.
Originality/value
The main value of the paper lies in providing further evidence of the value relevance and determinants of corporate disclosure using emerging data.
Keywords
Citation
A. Bokpin, G. (2013), "Determinants and value relevance of corporate disclosure : Evidence from the emerging capital market of Ghana", Journal of Applied Accounting Research, Vol. 14 No. 2, pp. 127-146. https://doi.org/10.1108/09675421311291883
Publisher
:Emerald Group Publishing Limited
Copyright © 2013, Emerald Group Publishing Limited