The Importance Of Disclosure And Transparency Within The Corporate Governance Structure

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Current Evidence While specific corporate governance rules often are controversial, most observers agree on the importance of disclosure and transparency within the corporate governance structure. Some could argue that disclosure may be costly and so effort and money spent on disclosure should be reduced to save costs during times of financial difficulties and limited resource availability. Yet, Isenmann & Lenz (2000) show that the use of new information technologies has had an enormous impact on the standards of availability and diffusion of information, introducing determinant advantages as readiness, low effort, and low cost in communication. Following the increased use of the Internet in the recent years, companies should find it…show more content…
The focus of this work is on information that companies choose to make readily available in English to their investors, given that English is the language of widest international circulation. Given there are roughly 500 million Spanish speakers worldwide and the language spoken in all the countries analyzed except Brazil, companies that wish to make information easily accessible to investors could also choose to do so by presenting their information in Spanish even if they chose to not translate the information in English. Table 1: Summary of Companies Analyzed This table includes a summary of all the companies analyzed. All company information was pulled from the local stock exchange, and it includes only companies listed as of December 31, 2013. Companies are not included in the sample if they were temporarily or permanently delisted from the exchange for not meeting requirements. Country Number of Companies Companies with a Website (%) Brazil 525 475 (90.48%) Mexico 142 125 (88.03%) Argentina 98 73 (74.49%) Chile 252 202 (80.16%) Columbia 80 70 (87.50%) Table 2: Summary of Sample Companies with Websites in English and Spanish This table shows a summary of
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