Original scientific paper
https://doi.org/10.1080/1331677X.2017.1314818
Determinants of transparency and disclosure – evidence from post-transition economies
Sasho Arsov
orcid.org/0000-0002-8149-1504
Vesna Bucevska
Abstract
In this paper, we examine the patterns of behaviour of companies from
former socialist countries related to the application of good corporate
governance practices. We try to assess the level of transparency and
to determine if there are any factors that systematically influence
corporate behaviour in this regard. Using a sample of 145 companies
from Croatia, Macedonia, Slovenia and Serbia, we apply Standard
& Poor’s (S&P) methodology for assessment of transparency and
disclosure levels and find that the companies in these countries
generally lag in terms of transparency behind their peers worldwide
as measured one decade ago. Additionally, using the same sample,
we apply a regression analysis and conclude that the level of
transparency is positively related to the size of the company and the
need for external financing, but negatively to the concentration of
ownership and we also observe important country effects. We do not
find a statistically significant relationship between transparency and
profitability and relate this finding with the prevailing attitude of the
companies towards the stock market. Having in mind the different
scores by country and by area of disclosure, we believe that there is
still scope for improvement using proper advising and public policy
measures.
Keywords
Transparency; disclosure; corporate governance; stock market; transition
Hrčak ID:
182561
URI
Publication date:
1.12.2017.
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