CFO’s Working as The Board Secretary Concurrently and Corporate Disclosure Quality: Based on Empirical Evidence of Listed Companies in Shenzhen Stock Exchange
Keywords:
CFO, the Board Secretary, Corporate Disclosure Quality.
Abstract
This paper took the selected data listed companies in Shenzhen Stock Exchange in 2008-2015 as samples to study the relationship between the CFO’s working as the Board Secretary concurrently and corporate disclosure quality, and also to examine the impact of different government intervention levels and nature of property rights. The results indicate that the CFO’s doubling as the Board Secretary can distinctly improve the quality of corporate disclosure in listed companies; the CFO’s holding concurrently the post of the Board Secretary can improve noticeably the disclosure quality of listed companies in regions with a high degree of government intervention; the CFO’s also serving as the Board Secretary can improve the disclosure quality of non-state-owned listed companies. Moreover, this paper presents a reasonable explanation for the phenomenon that increasingly more CFOs are serving as the Board Secretaries simultaneously via empirical study. Lastly, conclusions of this study can provide empirical evidence for the appointment of the Board Secretary in listed companies.
References
Ascioglu, A., Hegde, S. P., & McDermott, J. B. (2005). Auditor compensation, disclosure quality, and market liquidity: Evidence from the stock market. Journal of Accounting and Public Policy, 24(4), 325-354.
Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency?. Journal of accounting research, 42(2), 207-252.
Basu, S. (1997). The Conservatism Principle and the Asymmetric Timeliness of Earnings. Contemporary Accounting Research, 24 (1), 3-37.
Ball, R., Kothari, S. P., & Robin, A. (2000). The effect of international institutional factors on properties of accounting earnings. Journal of accounting and economics, 29(1), 1-51.
Bedard, J. C., Hoitash, R., & Hoitash, U. (2014). Chief financial officers as inside directors. Contemporary Accounting Research, 31(3), 787-817.
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of accounting and Economics, 32(1-3), 237-333.
Ball, R. (2001). Infrastructure requirements for an economically efficient system of public financial reporting and disclosure. Brookings-Wharton papers on financial services, 2001(1), 127-169.
Chen, X. (2004). Interpretation of " Board Secretary " Duties. Market B server, (3), 36-37.
Chen, G., Gong, L., Liu, X. (2013). Research on the Effect of Actual Controller on the Quality of Corporate Disclosure. Journal of Chongqing University (Social Edition), (1), 72-77.
Chen, C., Martin, X., Roychowdhury, S., Wang, X., & Billett, M. T. (2018). Clarity begins at home: Internal information asymmetry and external communication quality. The Accounting Review, 93(1), 71-101.
Claessens, S., Djankov, S., & Lang, L. H. (2000). The separation of ownership and control in East Asian corporations. Journal of financial Economics, 58(1-2), 81-112.
Devine, C. T. (1963). The rule of conservatism reexamined. Journal of Accounting Research, 1 (2), 127-138.
Deren, X., & Xiaoyan, T. (2012). The Localization of Audit Committee Chair and Earnings Quality. Auditing Research, (6), 90-96.
Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of accounting and public policy, 22(4), 325-345.
Fan, G., Wang, X., & Zhu, H. (2017). China Marketization Index-2016 Report on the Relative Progress of Marketization in Each Region. Economic Science Press.
Gao, F., & Wang, Z. (2015). Social Capital of the Secretary of the Board of Directors and Its Impact on Firm’s Information Disclosure Quality. Nankai Business Review in Chinese, 18 (4), 60-71.
Gao, L., & Song, S. L. (2007). Corporate Governance and Corporate Transparency. Journal of Financial Research, 329(11), 28-44.
Geiger, M. A., & North, D. S. (2006). Does hiring a new CFO change things? An investigation of changes in discretionary accruals. The Accounting Review, 81(4), 781-809.
Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of accounting and economics, 40(1-3), 3-73.
Jinghua, F., Yaman, Z., & Qiliang, L. (2013). Internal Control, Auditor Industry Expertise, Accrual and Real Earnings Management. Accounting Research, 4, 81-87.
King, M. E. (2013). Stakeholder relationship officers-coming to your company?. Keeping Good Companies, 65(1), 8-10.
Kirk, M. P., & Vincent, J. D. (2014). Professional investor relations within the firm. The Accounting Review, 89(4), 1421-1452.
Kim, O., & Verrecchia, R. E. (2001). The relation among disclosure, returns, and trading volume information. The Accounting Review, 76(4), 633-654.
Liang., M. (2005). Attach Importance to the Role of the Secretary of the Board of Directors in Improving the Quality of Accounting Information Disclosure. China Economist, (10), 136.
Li, Z., & Lu, W. (2003). Earnings conservatism: evidence and implication. Accounting Research, (2), 19-27.
Liu, J., & Liu, F. (2013). Fiscal centralization, government control and corporate tax burden: Evidence from China. China Journal of Accounting Studies, 1(3-4), 168-189.
Mao, X.S., Wang, B., Lin, C.Q. and Wang, N. (2013) Information Provider and Efficiency of Capital Market. Economy Research, No. 10, 69-81.
Qiang, G., & Lina, W. (2008). Does the Secretary of the Board of Directors Duality Matter? Evidence from the New Requirement of Updating Listing Rules to Improve the Quality of Information Disclosure . Accounting Research, (1), 47-54.
Staubus, G. J. (1985). An induced theory of accounting measurement. Accounting Review, 60 (1), 53-75.
Wang, J. Q., & Zhang, Q. F. (2007). Governance Environment, Governance Mechanism and Disclosure Quality: Evidence from Shenzhen Security Market. Contemporary Economy & Management, 3.
Wang, J., & Fang, Y. (2018). Can CFO’s doubling as the Director Improve the Quality of Information Disclosure: Based on the Nature of Property Rights and the Legal Protection Perspective of Investors. Finance and Accounting Monthly, (14), 50-57.
Xingqiang, D., & Riguang., W. (2007). Corporate governance and accounting information quality: an empirical study. Journal of Finance and Economics, (1), 122-133.
Yan, P., & Qingquan, X. (2004). Ownership, corporate governance structure and quality of accounting information. Accounting Research, 4(1), 19-23.
Ying, Z., & Zhengfei, L. (2006). The relationship between disclosure quality and cost of equity capital of listed companies in China. Economic Research Journal, 2(7), 2-17.
Zhou, K., Li, T., & Zhang, Y. (2011). Board Secretary and Corporate Disclosure Quality. Journal of Financial Research, (7), 167-181.
Zhou, N., & Zhuang, L. (2016). A Study of Board Structure, Corporate Governance, and Information Disclosure Quality. Review of Economy and Management, (5), 88-94.
Zhai, G. Y., Wu, L. C., & Kang, D. P. (2014). Does Chinese Listed Banks’ Board Secretary Reduce the Quality of Information Disclosure? Economic Review, (2), 127-138.
Bushman, R. M., Piotroski, J. D., & Smith, A. J. (2004). What determines corporate transparency?. Journal of accounting research, 42(2), 207-252.
Basu, S. (1997). The Conservatism Principle and the Asymmetric Timeliness of Earnings. Contemporary Accounting Research, 24 (1), 3-37.
Ball, R., Kothari, S. P., & Robin, A. (2000). The effect of international institutional factors on properties of accounting earnings. Journal of accounting and economics, 29(1), 1-51.
Bedard, J. C., Hoitash, R., & Hoitash, U. (2014). Chief financial officers as inside directors. Contemporary Accounting Research, 31(3), 787-817.
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of accounting and Economics, 32(1-3), 237-333.
Ball, R. (2001). Infrastructure requirements for an economically efficient system of public financial reporting and disclosure. Brookings-Wharton papers on financial services, 2001(1), 127-169.
Chen, X. (2004). Interpretation of " Board Secretary " Duties. Market B server, (3), 36-37.
Chen, G., Gong, L., Liu, X. (2013). Research on the Effect of Actual Controller on the Quality of Corporate Disclosure. Journal of Chongqing University (Social Edition), (1), 72-77.
Chen, C., Martin, X., Roychowdhury, S., Wang, X., & Billett, M. T. (2018). Clarity begins at home: Internal information asymmetry and external communication quality. The Accounting Review, 93(1), 71-101.
Claessens, S., Djankov, S., & Lang, L. H. (2000). The separation of ownership and control in East Asian corporations. Journal of financial Economics, 58(1-2), 81-112.
Devine, C. T. (1963). The rule of conservatism reexamined. Journal of Accounting Research, 1 (2), 127-138.
Deren, X., & Xiaoyan, T. (2012). The Localization of Audit Committee Chair and Earnings Quality. Auditing Research, (6), 90-96.
Eng, L. L., & Mak, Y. T. (2003). Corporate governance and voluntary disclosure. Journal of accounting and public policy, 22(4), 325-345.
Fan, G., Wang, X., & Zhu, H. (2017). China Marketization Index-2016 Report on the Relative Progress of Marketization in Each Region. Economic Science Press.
Gao, F., & Wang, Z. (2015). Social Capital of the Secretary of the Board of Directors and Its Impact on Firm’s Information Disclosure Quality. Nankai Business Review in Chinese, 18 (4), 60-71.
Gao, L., & Song, S. L. (2007). Corporate Governance and Corporate Transparency. Journal of Financial Research, 329(11), 28-44.
Geiger, M. A., & North, D. S. (2006). Does hiring a new CFO change things? An investigation of changes in discretionary accruals. The Accounting Review, 81(4), 781-809.
Graham, J. R., Harvey, C. R., & Rajgopal, S. (2005). The economic implications of corporate financial reporting. Journal of accounting and economics, 40(1-3), 3-73.
Jinghua, F., Yaman, Z., & Qiliang, L. (2013). Internal Control, Auditor Industry Expertise, Accrual and Real Earnings Management. Accounting Research, 4, 81-87.
King, M. E. (2013). Stakeholder relationship officers-coming to your company?. Keeping Good Companies, 65(1), 8-10.
Kirk, M. P., & Vincent, J. D. (2014). Professional investor relations within the firm. The Accounting Review, 89(4), 1421-1452.
Kim, O., & Verrecchia, R. E. (2001). The relation among disclosure, returns, and trading volume information. The Accounting Review, 76(4), 633-654.
Liang., M. (2005). Attach Importance to the Role of the Secretary of the Board of Directors in Improving the Quality of Accounting Information Disclosure. China Economist, (10), 136.
Li, Z., & Lu, W. (2003). Earnings conservatism: evidence and implication. Accounting Research, (2), 19-27.
Liu, J., & Liu, F. (2013). Fiscal centralization, government control and corporate tax burden: Evidence from China. China Journal of Accounting Studies, 1(3-4), 168-189.
Mao, X.S., Wang, B., Lin, C.Q. and Wang, N. (2013) Information Provider and Efficiency of Capital Market. Economy Research, No. 10, 69-81.
Qiang, G., & Lina, W. (2008). Does the Secretary of the Board of Directors Duality Matter? Evidence from the New Requirement of Updating Listing Rules to Improve the Quality of Information Disclosure . Accounting Research, (1), 47-54.
Staubus, G. J. (1985). An induced theory of accounting measurement. Accounting Review, 60 (1), 53-75.
Wang, J. Q., & Zhang, Q. F. (2007). Governance Environment, Governance Mechanism and Disclosure Quality: Evidence from Shenzhen Security Market. Contemporary Economy & Management, 3.
Wang, J., & Fang, Y. (2018). Can CFO’s doubling as the Director Improve the Quality of Information Disclosure: Based on the Nature of Property Rights and the Legal Protection Perspective of Investors. Finance and Accounting Monthly, (14), 50-57.
Xingqiang, D., & Riguang., W. (2007). Corporate governance and accounting information quality: an empirical study. Journal of Finance and Economics, (1), 122-133.
Yan, P., & Qingquan, X. (2004). Ownership, corporate governance structure and quality of accounting information. Accounting Research, 4(1), 19-23.
Ying, Z., & Zhengfei, L. (2006). The relationship between disclosure quality and cost of equity capital of listed companies in China. Economic Research Journal, 2(7), 2-17.
Zhou, K., Li, T., & Zhang, Y. (2011). Board Secretary and Corporate Disclosure Quality. Journal of Financial Research, (7), 167-181.
Zhou, N., & Zhuang, L. (2016). A Study of Board Structure, Corporate Governance, and Information Disclosure Quality. Review of Economy and Management, (5), 88-94.
Zhai, G. Y., Wu, L. C., & Kang, D. P. (2014). Does Chinese Listed Banks’ Board Secretary Reduce the Quality of Information Disclosure? Economic Review, (2), 127-138.
Published
2020-05-13
How to Cite
Rui, X., & Xing, Q. (2020). CFO’s Working as The Board Secretary Concurrently and Corporate Disclosure Quality: Based on Empirical Evidence of Listed Companies in Shenzhen Stock Exchange. International Journal of Accounting & Finance Review, 5(1), 84-104. https://doi.org/10.46281/ijafr.v5i1.571
Section
Research Paper/Theoretical Paper/Review Paper/Short Communication Paper
Copyright (c) 2020 Xiang Rui , Qian Xing
This work is licensed under a Creative Commons Attribution 4.0 International License.
