Does Corporate Transparency Contribute to Efficient Resource Allocation?

• 成果类型: Article
• 署名作者: Francis, Jere R.; Huang, Shawn; Khurana, Inder K.; Pereira, Raynolde
• 署名单位: University of Missouri System; University of Missouri Columbia; University of Arkansas System; University of Arkansas Fayetteville
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/j.1475-679X.2009.00340.x
• 发表日期: 2009
• 页码: 943-989
• 关键词: financial development; market development; stock markets; INFORMATION; disclosure; governance; GROWTH; equity; price; cost

摘要

This paper examines whether a country's corporate transparency environment, which includes the quality of accounting information, contributes to efficient resource allocation. Based on a cross-country study of 37 manufacturing industries in 37 countries, we provide three pieces of related evidence. First, we find the contemporaneous correlations in industry growth rates across country pairs are higher when there is a greater level of corporate transparency in the country pairs, after controlling for country-level economic and financial development. Second, we find the influence of transparency on these correlations is stronger when country pairs are at similar levels of economic development (GDP). Finally, when we control for the level of transparency explained by a country's institutions in place, we find that residual transparency (unexplained by country-level factors) is associated with industry-specific growth rates. Taken together, the results are consistent with corporate transparency facilitating the allocation of resources across industry sectors.