Abstract
The paper intended to evaluate the extent of corporate disclosure compliance and its effect on the financial performance of Bangladeshi pharmaceutical companies listed on the DSE during a twelve-year period, from 2007 to 2020. The study explored the affinity between the Corporate Governance Disclosure Index (CGDI) and firm financial performance employing econometric techniques, such as fixed effect and random effect models. The study calculated the disclosure scores as a percentage of a given firm's overall score to the probable score it could achieve. The CGDI of the sample companies showed a positive and substantial effect on company performance as an accounting measure ROA and an insignificant effect as a market measure Tobin’s Q. The study also revealed that sample firms followed the BSEC guidelines partially. These findings have implications for companies that fail to comply with the full disclosure principle, which holds that a company must disclose all material information in its financial statements in order to touch the reader's comprehension of those statements. In addition, these results imply that the code of CG requires a thorough examination to make essential modifications.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: International Journal of Research in Business and Social Science (2147- 4478)
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.