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Does Corporate Governance Improve Transparency in Emerging Markets?

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  • Pornanong Budsaratragoon
  • David Hillier
  • Suntharee Lhaopadchan

Abstract

We seek to understand how corporate governance affects transparency in emerging markets, where information asymmetry is endemically high. Using Thailand as a case study, we find that firms with better quality corporate governance have more firm-specific information incorporated in stock prices. We also highlight the role of corporate insider trading in further reducing information asymmetry in Thailand. The results are robust to alternative proxies for information disclosure.

Suggested Citation

  • Pornanong Budsaratragoon & David Hillier & Suntharee Lhaopadchan, 2014. "Does Corporate Governance Improve Transparency in Emerging Markets?," Journal of Financial Management, Markets and Institutions, Società editrice il Mulino, issue 1, pages 87-104, July.
    • Handle: RePEc:mul:jdp901:doi:10.12831/77238:y:2014:i:1:p:87-104
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