Information Disclosure, Product Market Competition, and Firm Value

57 Pages Posted: 19 Jan 2016

See all articles by Kung-Cheng Ho

Kung-Cheng Ho

Guangdong University of Finance and Economics

Shih-Cheng Lee

Yuan Ze University

Chien‐Ting Lin

Deakin University - School of Accounting, Economics and Finance

Lee-Hsien Pan

Keuka College

Date Written: January 19, 2016

Abstract

This study examines the relationship between information disclosures and firm value under different levels of product market competition. Using a unique information rating scheme that draws from 114 measures over five dimensions of information disclosure from 2005 to 2013, we find that firms with higher levels of information disclosure (better information transparency) are related to higher industry-adjusted Tobin’s Q. We also find that the levels of information disclosure and product market competition interact in affecting firm value. This relationship is robust after controlling for a number of firm-specific factors and agency-based measures. Our paper brings two streams of research that aim to explain the variation in firms’ value together, and suggests that information disclosure and product market competition complement each other in enhancing a firm’s value.

Keywords: Information disclosure; Product market competition; Firm value

JEL Classification: G30

Suggested Citation

Ho, Kung-Cheng and Lee, Shih-Cheng and Lin, Chien‐Ting and Pan, Lee-Hsien, Information Disclosure, Product Market Competition, and Firm Value (January 19, 2016). Asian Finance Association (AsianFA) 2016 Conference, Available at SSRN: https://ssrn.com/abstract=2717997 or http://dx.doi.org/10.2139/ssrn.2717997

Kung-Cheng Ho (Contact Author)

Guangdong University of Finance and Economics ( email )

Room 339, the 2nd North Building
21th Luntou Road
Guangzhou, 510320
China

Shih-Cheng Lee

Yuan Ze University ( email )

135, Far-East Rd., Chung-Li
Taoyuan, ROC
Taiwan

Chien‐Ting Lin

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

Lee-Hsien Pan

Keuka College ( email )

141 Central Ave
Keuka Park, NY 14478
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
343
Abstract Views
1,507
rank
110,106
PlumX Metrics