Original scientific paper
https://doi.org/10.1080/1331677X.2024.2341215
Corporate performance modeling through disclosure quality at the level of developing countries in Southeast Asia
Malik Abu Afifa
Nha Minh Nguyen
Abstract
The disclosure quality (DQ) of financial statements in Southeast
Asian firms remains poorly understood, with its impact on performance
yet to be empirically determined. Our study thus investigates
the influence of DQ on corporate performance (CP) among
listed firms, examining the moderating effects of managerial
myopia (MM) and corporate governance (CG). Employing quantitative
methods and data from Thomson Reuters DataStream, we
analyze a ten-year dataset of firms listed on stock exchanges in
six developing Southeast Asian nations during the period 2012–
2021 using the generalized method of moments (GMM) estimation.
Our findings support a positive effect of DQ on CP, consistent
with agency theory, while also highlighting the moderating
roles of MM and CG. We advocate for constraints on MM and
strengthened CG mechanisms to enhance the effect of DQ on CP.
Our study contributes new insights rooted in agency theory, providing
comprehensive explanations for the effects of MM and CG
on the DQ-CP nexus. Investors can leverage these insights by utilizing
DQ and CG as forecasting indicators for future CP.
Furthermore, future research could broaden the scope by including
additional developing nations to yield more comprehensive
findings.
Keywords
Corporate performance; disclosure quality; managerial myopia; corporate governance; developing countries; GMM estimation method
Hrčak ID:
321745
URI
Publication date:
18.4.2024.
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