Role of corporate governance in mitigating the selective disclosure of executive stock option information

Accounting and Finance

Volumn 50, Issue 3, 2010, Pages 685-717

  Nelson, Jodie ^a   Gallery, Gerry ^a   Percy, Majella ^b  

^a QUEENSLAND UNIVERSITY OF TECHNOLOGY   (Australia)

^b GRIFFITH UNIVERSITY   (Australia)

Author keywords

Compliance; Corporate governance; Executive stock options; Selective disclosure

Indexed keywords

EID: 77955757288     PISSN: 08105391     EISSN: 1467629X     Source Type: Journal    
DOI: 10.1111/j.1467-629X.2009.00339.x     Document Type: Article

References (61)

1. Abbott L, Parker S, Peters G. Audit committee characteristics and restatements. Auditing: A Journal of Practice and Theory 2004, 23:69-87.
2. Aboody D, Kasznik R. CEO stock option awards and the timing of corporate voluntary disclosures. Journal of Accounting and Economics 2000, 29:73-100.
3. Anderson R, Mansi S, Reeb D. Board characteristics, accounting report integrity, and the cost of debt. Journal of Accounting and Economics 2004, 37:315-342.
4. AASB1017: Director and Director Related Entities 1997, AASB
5. AASB1028: Employee Benefits 2002, AASB
6. AASB1046: Director and Executive Disclosures by Disclosing Entities 2004, AASB
7. Guidelines to Valuing Options in Annual Directors' Reports 2003, June 30
8. 2006, http://www.asa.asn.au, [Retrieved 1 January 2007]. Available from:
9. Ball R, Robin A, Wu J. Incentives versus standards: properties of accounting income in Four East Asian countries and implications for acceptance of IAS. Journal of Accounting and Economics 2003, 36:235-270.
10. Bassett M, Koh P, Tutticci I. The association between employee stock option disclosures and corporate governance: evidence from an enhanced disclosure regime. The British Accounting Review 2007, 39:303-322.
11. Beaver W. Financial Reporting: An Accounting Revolution 1998, 3rd edn, Prentice-Hall, Upper Saddle River, NJ
12. Beekes W, Brown P. Do better-governed Australian firms make more informative disclosures? Journal of Business Finance and Accounting 2006, 33:422-450.
13. Boyd T, Clegg B. AMP defends options as profit dives. Australian Financial Review 2002, 23 August
14. Bradbury M, Mak Y, Tan S. Board characteristics, audit committee characteristics and abnormal accruals. Pacific Accounting Review 2006, 18:47-68.
15. Brown L, Caylor M. Corporate governance and firm valuation. Journal of Accounting and Public Policy 2006, 25:409-434.
16. Bushman R, Smith A. Transparency, financial accounting information and corporate governance. Economic Policy Review 2003, 9:65-87.
17. Chen C, Jaggi B. Association between independent non-executive directors, family control and financial disclosures in Hong Kong. Journal of Accounting and Public Policy 2000, 19:285-310.
18. Cheng E, Courtnay S. Board composition, regulatory regime and voluntary disclosure. The International Journal of Accounting 2006, 41:262-289.
19. Clarkson P, Lammerts Van Bueren A, Walker J. Chief executive officer remuneration disclosure quality: corporate responses to an evolving disclosure environment. Accounting and Finance 2006, 46:771-796.
20. Conyon M, Mallin C, Sadler G. The disclosure of directors' share option information in UK companies. Applied Financial Economics 2002, 12:95-103.
21. Cooper K, Keim G. The economic rationale for the nature and extent of financial disclosure regulation: a critical assessment. Journal of Accounting and Public Policy 1983, 2:189-205.
22. Core J. A review of the empirical disclosure literature: discussion. Journal of Accounting and Economics 2001, 31:441-456.
23. Cotter J, Silvester M. Board and monitoring committee independence. Abacus 2003, 39:211-232.
24. Coulton J, James C, Taylor S. The effect of compensation design and corporate governance on the transparency of CEO compensation disclosure 2003, Working Paper, University of Technology, Sydney, NSW
25. Eng L, Mak Y. Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy 2003, 22:325-345.
26. Fama E, Jensen M. Separation of ownership and control. Journal of Law and Economics 1983, 26:301-325.
27. Felo A, Krishnamurthy S, Solieri S. Audit committee characteristics and the perceived quality of financial reporting: an empirical analysis 2003, Working Paper, Pennsylvania State University, Malvern, PA
28. Ferguson M, Lam K, Lee G. Voluntary disclosure by state-owned enterprises listed on the stock exchange of Hong Kong. Journal of International Financial Management and Accounting 2002, 13:125-152.
29. Ferrarini G, Moloney N. Executive remuneration in the EU: the context for reform. Oxford Review of Economic Policy 2005, 21:304-323.
30. Forker J. Corporate governance and disclosure quality. Accounting and Business Research 1992, 86:111-124.
31. Gallery G, Cooper E, Sweeting J. Corporate disclosure quality: lessons from Australian companies on the impact of adopting international financial reporting standards. Australian Accounting Review 2008, 18:257-273.
32. Gillan S. Recent developments in corporate governance: an overview. Journal of Corporate Finance 2006, 12:381-402.
33. Gillan S L, Starks L T. A survey of shareholder activism: motivation and empirical evidence. Contemporary Finance Digest 1998, 2:10-34.
34. Gompers P, Ishi J, Metrick A. Corporate governance and equity prices. The Quarterly Journal of Economics 2003, February:107-155.
35. Gujurati D. Basic Econometrics 2003, 4th edn, McGraw-Hill, Sydney
36. Healy P, Palepu K. Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature. Journal of Accounting and Economics 2001, 31:405-440.
37. Hepworth A, Durkin P. Demand for tough new rules on executive pay. Australian Financial Review 2008, 27:1-6.
38. Hill J, Yablon C. Corporate governance and executive remuneration: rediscovering managerial positional conflict. University of New South Wales Law Journal 2002, 25:294.
39. Ho S, Wong K. A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing and Taxation 2001, 10:139-156.
40. Hope O. Disclosure practices, enforcement of accounting standards and analysts forecast accuracy: an international study. Journal of Accounting Research 2003, 41:235-272.
41. Hossain M, Perera M, Rahman A. Voluntary disclosure in the annual reports of New Zealand companies. Journal of International Financial Management and Accounting 1995, 6:69-87.
42. Jensen M. Agency costs of free cash flow, corporate finance and takeovers. The American Economic Review 1986, May:323-329.
43. Jensen M, Meckling W. Theory of the firm: managerial behaviour, agency costs and ownership structure. Journal of Financial Economics 1976, 3:305-360.
44. John K, Senbet L. Corporate governance and board effectiveness. Journal of Banking and Finance 1998, 22:371-403.
45. Keller G, Warrack B, Bartel H. Statistics for Management and Economics 1990, 2nd edn, Wadsworth Publishing, Belmont, CA
46. Larcker D, Richardson S, Tuna I. Corporate governance, accounting outcomes, and organisational performance. The Accounting Review 2007, 82:963-1008.
47. Morris R, Ho B, Pham T, Gray S. Financial reporting practices of Indonesian companies before and after the Asian financial crisis. Asia-Pacific Journal of Accounting and Economics 2004, 11:194-221.
48. Naiker V, Navissi F. An empirical examination of the effectiveness of the 1999 Blue Ribbon Committee recommendations. 2005, Working Paper, The University of Auckland, Malvern, PA
49. Nelson J, Percy M. The transparency of executive stock option disclosures in Australian annual reports. Financial Reporting, Regulation, and Governance 2005, http://www.cbs.curtin.edu.au/business/research/journals/financial-reporting/-regulation-and-governance/volume-4-no-2-2005#Nelson, 4, Available from:
50. Nelson J, Percy M. Stock option disclosures of directors: where transparency can mask secrecy? Asian Review of Accounting 2008, 16:185-196.
51. Owusu-Ansah S. Factors influencing corporate compliance with financial reporting requirements in New Zealand. International Journal of Commerce and Management 2005, 15:141-157.
52. Owusu-Ansah S, Yeoh J. The effect of legislation on corporate disclosure practices. Abacus 2005, 41:92-109.
53. Street D, Gray S. Factors influencing the extent of corporate compliance with international accounting standards: summary of a research monograph. Journal of International Accounting, Auditing and Taxation 2002, 11:51-76.
54. Taplin R, Tower G, Hancock P. Disclosure (discernibility) and compliance of accounting policies: Asia-Pacific evidence. Accounting Forum 2002, 26:172-190.
55. Tower G, Hancock P, Taplin R. A regional study of listed companies' compliance with international accounting standards. Accounting Forum 1999, 23:293-305.
56. Uzun H, Szewczyk S, Varma R. Board composition and corporate fraud. Financial Analysts Journal 2004, 60:33-43.
57. Vafeas N. Board meeting frequency and firm performance. Journal of Financial Economics 1999, 53:113-142.
58. Wright D. Evidence on the relation between corporate governance characteristics and the quality of financial reporting. 1996, Working Paper, University of Michigan, Ann Arbor, MI
59. Yermack D. Higher market value of companies with a small board of directors. Journal of Financial Economics 1996, 40:185-211.
60. AASB1028: Accounting for employee entitlements 1995, AASB
61. Practice note 68: new financial reporting and procedural requirements. 1998, Reissued 20 July 2004