Board independence and voluntary financial disclosure: The moderating role of ownership structure

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Luigi Lepore ORCID logo, Sabrina Pisano ORCID logo, Gabriella D’Amore ORCID logo, Carmela Di Guida ORCID logo

https://doi.org/10.22495/ncpr_42

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Voluntary disclosure and corporate governance variables are considered important mechanisms for the reduction of the information asymmetries and conflicts of interest potentially arising between competing parties of the firms. This paper aims at investigating the relationship between board independence and quality of voluntary financial disclosure and how previous relationship is moderated by the level of ownership concentration. The analysis has been conducted on a sample of Italian non-financial listed companies and the results show that there is a significant positive relationship between board independence and the quality of voluntary financial disclosure. Moreover, our findings reveal that ownership concentration plays a relevant moderating role in that relationship, highlighting the necessity to consider the interaction effects of different governance mechanisms when studying corporate governance effectiveness.

Keywords: Voluntary Disclosure, Board Independence, Ownership concentration

JEL Classification: M400, M480

Received: 17.07.2019
Accepted: 26.07.2019

How to cite: Lepore, L., Pisano, S., D’Amore, G., & Di Guida, C. (2019). Board independence and voluntary financial disclosure: The moderating role of ownership structure. In S. Esposito De Falco, F. Alvino, & A. Kostyuk (Eds.), New challenges in corporate governance: Theory and practice (pp. 303-319). https://doi.org/10.22495/ncpr_42