Corporate Transparency and Firm Performance: Evidence from Venture Firms Listed on the Korean Stock Market1. (16th August 2013)

• Record Type: Journal Article
• Authors: Kim, Younghwan; Lee, Jungwoo; Yang, Taeyong
• Is Part Of: Asia-Pacific journal of financial studies. Volume 42:Number 4(2013:Aug.)
• Page Start: 653
• Page End: 688
• Publication Date: 2013-08-16
• Subjects: Pacific Area -- Economic conditions -- Periodicals; Finance -- Asia -- Periodicals; Finance -- Pacific Area -- Periodicals; Asia -- Economic conditions -- Periodicals; 332.09505
• DOI: 10.1111/ajfs.12027
• Languages: English
• ISSNs: 2041-9945

Abstract

<abstract abstract-type="main" id="ajfs12027-abs-0001"> <title>Abstract</title> <p>This study proposes a new corporate transparency index comprising four sub‐indices: financial, governance, operational, and social transparency. Using our index, we examine the effects of corporate transparency on firm value and the profitability of 162 Korean venture firms. Results show that corporate transparency is positively associated with firm profitability. Financial transparency is positively related to firm profitability and negatively associated with firm value. Firms with a greater level of governance transparency have a higher firm value and a lower return on assets. Operational transparency is negatively related to firm value. Social transparency is positively associated with firm value and profit.</p> </abstract>