Additional Disclosure Research Articles

Washington Poised to Require Additional Financial Disclosures From Unions

Washington Poised to Require Additional Financial Disclosures From Unions

THE NEED FOR FORMATION OF ANALYTICAL SYSTEM OF CORPORATE GOVERNANCE

Introduction. The process of substantiating the decisions made by corporate governance entities requires reliable analytical tools. One of the most pressing issues of an applied nature is to improve the analytical support of corporate governance based on the specific information needs of its subjects, which were formed in recent years with the emergence of new information sources and complicating the environment of corporate structures. Methods. The methodological basis of the article is the fundamental provisions of modern economics and scientific works of scientists. The research used methods of analysis and synthesis – to study the object and subject of research, abstract and logical – for theoretical generalizations and conclusions, constructive – to form the variability of management decisions through analytical support. Results. The necessity of improving the analytical support of corporate governance is substantiated. The specific needs of corporate management of analytical information are not provided. Two main subsystems (corporate information system of analysis, analytical system of corporate management) are allocated as a part of system of analytical maintenance of corporate management. There are two approaches to building a corporate information analysis system (functional, object). The necessity to include in the system of analytical support of corporate management methods that would ensure the formation of an idea of the quality and transparency of the information support of the corporate reporting system is substantiated. The essence of the analytical system of corporate governance is substantiated, which provides the directions of analysis that provide the specific information needs of the subjects of corporate governance. Discussion. The obtained results are intended for the development of an analytical system of corporate governance, as one of the subsystems of the general system of its analytical support, which will ensure the following areas of analysis: transparency of corporate reporting; the level of specificity of assets; additional disclosure of information.

Voluntary Disclosure and Informed Trading

I study the impact of informed trading on voluntary corporate disclosure in the presence of two frictions: cost of disclosure and value of managerial information. In the absence of both frictions, informed trading has no impact on disclosure even when traders are not certain whether the manager has information. If disclosure is costly, then informed trading reduces disclosure. Since traders can discover favorable information about the firm, additional disclosure of the information is not necessary. If managerial information is valuable for the firm, then informed trading increases disclosure. Since traders can discover unfavorable information about the firm, the manager with such information has less incentives to pool with uninformed managers and discloses to show that he is informed. I also show that informed trading can have both a positive and a negative real effect on the firm value by crowding in or crowding out information production in the firm. These results hold for general information structures and are robust if traders can choose how much information to acquire.

Fair value's effects on closed-end funds' discounts and premia: is level 3 the sole perpetrator?

PurposeThis study examines the long-term link between fair valuation uncertainty and discounts/premia in closed-end funds. This study argues that, in exploring the close-end funds puzzle, prior research generally omits to consider the uncertainty surrounding the measurement of funds' financial disclosure, as reflected in the fair value hierarchy, when investment specialty differs across funds.Design/methodology/approachRegressions were employed to explore how the fair value hierarchy affects closed-end funds' discounts/premia when investment specialty differs. The authors also examine the effects pre- and post-2012 to explore if that relationship changes due to the additional disclosure requirements enacted at the end of 2011.FindingsThe authors find that the three levels of the fair value hierarchy have effects that vary according to a fund's specialty. For equity specialized funds, Level 3 significantly increases discounts and decreases premia, suggesting the impact of valuation uncertainty that underlies Level 3 estimates; this relationship disappears (decreases in severity) for premia (discount) experiencing funds post-2012. In contrast, Level 1 and Level 2 do not have any significant effect on discounts or premia except that post-2012, Level 2 begins to display discount decreasing effects. For bond specialized funds, no significant association was noted between premia and any of the fair value levels except that post-2012, Level 3 begins to display premium increasing effects. However, results are different for discounts. The authors note that Level 1 valuations significantly increase discounts, but only post-2012; Level 2 valuations significantly decrease discounts (pre- and post-2012), consistent with such estimates incorporating unique and relevant information; and Level 3 valuations do not have a significant effect on discounts.Originality/valueThe results of this study revisit prior evidence and indicate that results about the effects of fair value measurement and the closed-end funds' puzzle are sensitive to the period length being considered and the investment specialty of the fund. The authors also note that additional disclosure regarding Level 3 valuation inputs decreases market concern for valuation uncertainty and increases the liquidity benefits of investing in Level 3 carrying funds.

Comment on: The Geographic Diversity of Spinocerebellar Ataxias (SCAs) in the Americas.

We have read with interest the review by Teive and colleagues1 that described the prevalence and clinical phenotypes of spinocerebellar ataxias (SCAs) across the Americas. The authors showed, based on the results of the so far only study published from a single center in Argentina including 20 patients, that in Argentina the most frequent SCAs were SCA2 (8 cases; 40%) followed by SCA1 and SCA3 (5 cases; 25% for each subtype), SCA6 (1 case; 5%), and SCA7 (1 case; 5%).2 We would like to add unpublished data obtained from the largest genetic and molecular biology center in Argentina from 2008 to 2019. A total of 272 patients with progressive ataxia were tested for SCA1, SCA2, SCA3, SCA6, SCA7, or SCA8. Among the 48 (18%) cases that proved positive for SCA, the most frequent was SCA2 (22 cases; 46%) followed by SCA3 (13 cases; 27%), SCA1 (10 cases; 21%), SCA6 (2 cases; 4%), and SCA7 (1 case; 2%). These results based on a larger cohort confirm Teive and colleagues’1 report that SCA2 is the most frequent genetic subtype in our country, in concordance with Cuba, but different to most countries of the Americas where SCA3 is the most prevalent SCA subtype.1, 3 An explanation for the higher frequency of SCA2 in Argentina in comparison with other SCAs could be because the majority of its people have a European ancestry, mainly from Spain and Italy, where SCA2 is highly prevalent.3 Knowing which SCA subtypes are the most prevalent in different countries or regions is critical for genetic testing when diagnostic resources, such as comprehensive gene panels, are not universally available or affordable. (1) Research Project: A. Conception, B. Organization, C. Execution; (2) Manuscript Preparation: A. Writing of the First Draft, B. Review and Critique. M.G.: 1A, 1B, 1C, 2A M.R.: 1A, 1B, 1C, 2A A.Z.: 1A, 1B, 1C, 2B P.I.: 1A, 1B, 1C, 2B Ethical Compliance Statement: We confirm that we have read the Journal's position on issues involved in ethical publication and affirm that this work is consistent with those guidelines. The authors confirm that the work received approval of an institutional review board. Funding Sources and Conflicts of Interest: The authors declare that there are no conflicts of interest relevant to this work. Financial Disclosures for Previous 12 Months: The authors declare that there are no additional disclosures to report.

The Proxy Problem: Using Nonprofits to Solve Misaligned Incentives in the Proxy Voting Process

Proxy advisory firms and their influence on the proxy voting process have recently become the subject of great attention for the Securities and Exchange Commission (“SEC”) among other constituencies. A glance at recent proxy season recaps and reports, many of which devote space to discussing proxy advisory firm recommendations, reveal the significance of this influence on institutional voting. As Sagiv Edelman puts it, “proxy advisory firms exist at the nexus of some of the most high-profile corporate law discussions—most notably, the shareholder voting process, which has recently been the subject of much scholarly and legal debate.” The SEC has responded by announcing that it intends to reform the regulations, or lack thereof, surrounding proxy advisory firms. Recently, the SEC issued proposed amendments to Exchange Act Rule 14(a)-1 which would effectively codify their earlier interpretation of solicitation under this rule. The proposed amendment would “condition the availability of certain existing exemptions from the information and filing requirements . . . for proxy voting advice businesses upon compliance with additional disclosures and procedural requirements.” Furthermore, the amendments would clarify when a lack of disclosure of certain information in proxy voting advice compromises the accuracy of the advice and misleads within the meaning of the rule. The SEC believes that these extra requirements will “help ensure that investors who use proxy voting advice receive more accurate, transparent, and complete information on which to make their voting decisions.” Based on this proposal, it is apparent that the SEC is intent on rectifying some of the problems of transparency and conflicts of interest associated with proxy advisory firms. Given the increasing influence of proxy advisory firms, the misalignment of incentives between proxy firms and the institutional shareholders who use proxy firm services is troubling. This Note identifies inherent problems and concerns with proxy advisory firms and offers solutions to these issues with a focus on eliminating conflicts of interest. Using Henry Hansmann’s theory of ownership, this Note argues that nonprofit ownership of proxy advisory firms eliminates both information asymmetry and conflicts of interest inherent to the current ownership structure. Part I provides a brief overview of the problems and concerns associated with proxy advisory firms. Part II suggests two potential solutions: that Rule 206(4)-6 of the Investment Adviser Act of 1940 should be repealed or alternatively, that nonprofit ownership through investment company associations is a more effective way for investment management companies to comply with their fiduciary duties. Because profit incentive has created conflicts of interest that lead to proxy advice that may not always be in the best interest of investment manager clients, nonprofit ownership promotes transparency that allows parties who rely on the advice to make more independent decisions. Part III argues that nonprofit ownership is the most viable alternative to the status quo.

Shareholder Voting: A Complementary Mechanism to Mandatory Disclosure Regulation

We offer that, when regulators require firms to obtain stakeholder approval of a corporate decision through voting on a resolution, firms disclose additional information that is needed for stakeholders to understand the optimal nature of the proposal and to vote in favor of it. We suggest that this indirect regulatory approach to disclosure can improve transparency over and beyond that achieved through mandated disclosures alone. The study documents the effectiveness of this indirect regulatory mechanism in the context of Say-on-Pay rules relating to executive compensation. The analyses reveal that, even though firms were previously required to provide detailed compensation-related disclosures, the passage of the SoP rule increased disclosures further, especially among firms that had seemingly excessive pay packages. Also, firms that had previously failed their SoP voting or had received an ‘Against’ recommendation from a proxy advisor increase their compensation-related disclosures disproportionately. These additional disclosures also help the firms achieve better subsequent SoP voting outcomes. We conclude that stakeholder-voting regulations can be an effective tool to improve corporate transparency.

Disclosure of AGM Minutes on Corporate Website: An Assessment of Malaysian Listed Companies

Disclosure of annual general meeting (AGM) minutes on the corporate website is considered as additional disclosure. Consequently, Listing Requirements states compulsory disclosure of corporate information. In this regard, the awareness of compulsory disclosure of information among all Malaysian listed companies in 2017 was below expectations. Despite the role of AGM minutes as documented proof of meeting, the management had been reluctant to disclose AGM minutes on the corporate website unless demanded by the shareholders. This paper focuses on previous mandatory disclosure of discussions on key matters after AGM minutes among 261 listed companies based on the financial year ended December 31, 2016. The findings indicated that shareholder activism and the role of grey directors exerted influence on the disclosure of AGM minutes on the corporate website. Undoubtedly, management and investors have contributed toward voluntary disclosure in line with the government’s role to enhance shareholder rights. Besides, grey directors’ contribution towards information disclosure has remained relatively unexplored.

Quality of Independent Expert Reports Used in Australian Takeovers

In this article, the authors investigate whether there has been an improvement in the quality of independent expert reports following ASIC's revisions to RG111 and RG112. These revisions include additional disclosures on the valuation methodologies used and explanation if the valuation was materially different from the company's recent trading price. It was expected that these revisions have led to an improvement in report quality where quality is determined by the accuracy of the expert's valuation. Results show that after the 2011 revisions, valuations became more accurate based on updated measures of report quality. However, experts with higher fees did not provide higher quality reports on average. The findings indicate that the independence provisions within the new rules were effective. Furthermore, they warn commissioning firms that higher fees are not necessarily indicative of higher quality reports.

Розвиток звіту про управління в системі інформаційного забезпечення корпоративного управління

One of the directions for the development of additional disclosure of accounting information in the corporate governance system is to improve the content and the procedure for the presentation of the Management Report by corporate structures. As the European experience in reporting shows, which includes non-financial indicators, today the development of the content of the Management Report on the basis of improving its regulatory regulation is relevant taking into account the requirements and needs of stakeholders of corporate structures. The purpose of the article is to find ways to improve the Management Report as a means of additional disclosure of accounting information in corporate structures. To achieve this goal, methods of analysis and synthesis, modeling, a tabular research method were used. The relevance of the development of the content of the Management Report was substantiated based on the improvement of its regulatory regulation. The analysis of the regulatory features of the disclosure of non-financial information was carried out. As a basis for comparison, the Guidelines for the preparation of the management report, Directive 2013/34/EU and Directive 2014/95/EU were selected. The analysis of existing forms of punishment in case of non-compliance with the requirements for the publication of non-financial information in the EU countries was carried out. Proposals concerning the punishment in case of untimely disclosure, distortion or concealment of non-financial information by Ukrainian companies were submitted. The composition of indicators for such sections as Environmental Aspects, Social Aspects and Personnel Policy, Research and Innovation of the Management Report was disclosed. The result of the study is the author's suggestions for improvement the Guidelines for the preparation of a management report. In addition, the necessity of forming a common policy at the corporate structure level on the disclosure of additional accounting information in the form of financial and non-financial indicators was substantiated.

The Effect of Disclosing Key Audit Matters and Accounting Standard Precision on the Audit Expectation Gap

To try and improve the communicative value of the audit report and therefore help reduce the expectation gap there is a new requirement for auditors to identify and disclose key audit matters (KAMs) in the audit report. This study reports an experiment using non-professional financial report users to investigate the effect of disclosing KAMs on the audit expectation gap. Associated with the relevance of the KAM disclosure is the nature of the matter that the KAM relates to. In relation to accounting matters, an important disclosure issue relates to the level of precision of the accounting standards. This study also explores how differences in precision of accounting standards interacts with the auditor’s reporting of KAMs to affect users’ perceptions. We find that disclosing KAMs per se in the audit report did not affect the audit expectation gap, which is consistent with prior research on the effect of additional disclosures in audit reports. However, the expectation gap actually increased on measures associated with perceptions on the reliability of the audited financial reports when the audit report included a KAM that follows a precise accounting standard, suggesting some potential unintended consequences of this reporting change.

Compensation Disclosures and Corporate Governance through Shareholder Voting

ABSTRACTThere are several measures of equity compensation that may provide shareholders with distinct and useful information for evaluating CEO pay. We examine whether shareholders consider additional disclosures of equity compensation measures beyond the grant date fair value when participating in corporate governance. We find that CEO equity compensation expense, a distinct measure of equity compensation, is a determinant of shareholder voting for management sponsored equity plans and voting for directors that serve on the compensation committee. After controlling for ISS recommendations, we find that voting outcomes remain significantly related to abnormal equity compensation expense. Consistent with shareholders considering the equity compensation expense, we document that firms shorten equity compensation vesting periods when they are no longer required to disclose the equity compensation expense. Our findings suggest that shareholders rely on multiple, distinct measures of equity compensation when participating in corporate governance.JEL Classifications: M12; M52; G34.Data Availability: Data are available from the public sources cited in the text.

The usefulness of intangible assets’ disclosure for financial analysts. Insights from Purchase Price Allocation conditional on deal quality

Les actifs incorporels nouvellement acquis sont pleinement comptabilisés lors de regroupements d’entreprises (FASB, 2001). La pertinence informationnelle pour les analystes financiers des informations fournies sur les actifs incorporels à la suite de regroupements d’entreprises est examinée. La comptabilisation des actifs incorporels fait l’objet d’un débat entre les défenseurs d’une communication et d’une reconnaissance accrue et les défenseurs du régime actuel de communication principalement volontaire avec une reconnaissance limitée. Cet article vise à contribuer à ce débat. Nous étudions le contenu informationnel des informations publiées sur les actifs incorporels suite aux regroupements d’entreprises et à leur comptabilisation. A partir d’un échantillon manuellement collecté de 447 affectations de prix d’acquisition pour les transactions importantes réalisées entre 2002 et 2011 aux États-Unis, nous étudions les effets de la communication relative aux actifs incorporels sur les révisions des prévisions de résultats des analystes. Nous testons séquentiellement l’impact du niveau de communication sur les actifs incorporels total, ainsi que la communication de chaque élément du score de communication, avec et sans contrôle de la qualité de la transaction. Les informations fournies sont positivement associées à l’ampleur des révisions des prévisions des analystes, en particulier pour les transactions qui ont été reçues négativement par les acteurs de marché lors de leur première annonce (Bad Deals). Certains composants individuels des informations à fournir sont individuellement informatifs pour les analystes financiers, tels que la communication du montant d’actifs incorporels identifiés séparément ou des informations sur leur amortissement. L’écart d’acquisition est associé à une révision à la baisse des prévisions de résultats des analystes et confirme que l’écart d’acquisition est un indicateur du montant des surprix d’acquisition pour les analystes. Dans l’ensemble, nos résultats indiquent que les informations fournies et les montants relatifs aux actifs incorporels récemment acquis fournissent des informations pertinentes aux analystes financiers.

РОЗВИТОК СТРУКТУРИ ІНТЕГРОВАНОЇ ЗВІТНОСТІ ПІДПРИЄМСТВА

Реалізація фундаментальних засад і принципів формування інтегрованої звітності, що закладені Міжнародними основами інтегрованої звітності, потребує розроблення її належної структури. Необхідність у загальноприйнятій структурі інтегрованої звітності обумовлюється браком як у нормативних актах, так і в науково-практичних коментарях відповідної інформації. Це актуалізує питання впорядкування інформації суб’єкта господарювання, що розкривається в інтегрованій звітності, та розроблення відповідної структури інтегрованої звітності для її розкриття.Метою дослідження є удосконалення структури інтегрованої звітності шляхом розкриття складу елементів такої структури. Для досягнення поставленої мети застосовуватимемо такі наукові методи як аналіз, синтез, індукція, дедукція, абстрагування, ідеалізація, узагальнення і моделювання.Запропонований перелік елементів структури інтегрованої звітності не може вважатися всеохоплюваним, оскільки специфіка діяльності кожного підприємства вимагає або додаткового розкриття потрібної інформації в таких елементах структури інтегрованої звітності або виключення окремих елементів з її структури, якщо вони не є характерними для конкретного виду діяльності. У порівняльній структурі елементів інтегрованої звітності за Міжнародними основами інтегрованої звітності та підходами авторів систематизовано найбільш суттєві їхні елементи, які розширюють інформаційні можливості такої звітності, а їхнє безпідставне ігнорування знижує повноту розкриття інформації в інтегрованій звітності.За результатами проведеного дослідження надано пропозиції щодо удосконалення структури інтегрованої звітності шляхом розкриття інформації за кожним елементом інтегрованої звітності, що забезпечить достатній рівень деталізації інформації для цілей ухвалення економічних рішень відповідними групами зацікавлених користувачів.

Market valuations of bargain purchase gains: are these true gains under IFRS?

This study investigates stock market valuations for bargain purchase gains (BPGs) in the context of International Financial Reporting Standards (IFRS) between 2005 and 2014. Motivated by the increased frequency and high concentration of BPGs in Europe, we study a sample of acquirers listed on the London Stock Exchange to assess the value relevance of BPGs (a) under discrepant disclosure practices (i.e. disclosure versus non- disclosure of the reasons for the gains), (b) before and after the revision of IFRS 3, and (c) considering different income classifications for BPGs (operating or non-operating earnings). BPGs, on average, are not significantly valued by the stock market. However, the post-IFRS 3 revision period, marked by stricter measurement criteria and additional disclosure requirements, witnessed a significant shift in firm valuations. BPGs for which the reason for the gain is disclosed are positively valued only in the post-IFRS 3 revision period. BPGs are consistently perceived as value irrelevant for those firms which fail to comply with mandated IFRS 3 disclosure requirements regarding the reason for the gain. Finally, BPGs classified as a component of non-operating income with sufficient note disclosure on the reason for the gain are significantly associated with prices and returns.

Intellectual Property from a Global Environmental Law Perspective: Key Lessons from the Implementation of Patent Disclosure Requirements for Genetic Resources and Traditional Knowledge

This commentary considers the intellectual property (IP) system from a global environmental law perspective by exploring the extent to which patent-related treaties, such as the World Trade Organization (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights and the World Intellectual Property Organization (WIPO) Patent Cooperation Treaty, can facilitate implementation of global environmental standards in the field of biodiversity law. The commentary aims to provide practical guidance to countries that wish to introduce patent disclosure-related mechanisms into their legal systems with a view to mainstreaming instances of global justice, fairness and equity, and raises awareness of the limitations arising from their extant IP obligations. Global environmental law standards have exercised an undeniable influence on the political discourse in international IP policy making in the field of patent disclosure. However, many pre-Nagoya Protocol patent disclosure requirements only apply to genetic resources whose provenance is the same country that has established the requirement. However, if a country designates its patent or IP office as a compliance checkpoint under the Nagoya Protocol, then the disclosure requirement should encompass at least the genetic resources originating from all countries that are contracting parties to this instrument. This could allow fulfilling a core monitoring obligation of the Nagoya Protocol, while enabling wider synergies and transparency within the IP system. Section 1 contextualizes the discussion of technical areas of international law – i.e. IP, access to genetic resources and associated traditional knowledge, and the fair and equitable sharing of benefits arising from their use (ABS) – and explains the relevance of the ensuing legal analysis for global environmental law and global justice. Section 2 further illustrates the frictions between global environmental law and the international IP system in the field of biodiversity. Section 3 considers the relationship between global ABS obligations and additional patent disclosure requirements. Section 4 explains selected features of patent disclosure requirements in national law and illustrates the influence of global environmental law in the development of such features. Section 5 examines patent disclosure-related mechanisms by assessing their compatibility with relevant IP law treaties. The final section concludes by drawing key lessons learned and considers their implications for the emergence of global environmental law exigencies and standards of transparency, fairness, equity and global justice under the UN Convention on Biological Diversity (CBD) and its Nagoya Protocol on ABS.

Market Valuations of Bargain Purchase Gains: Are These True Gains under IFRS?

This study investigates stock market valuations for bargain purchase gains (BPGs) in the context of International Financial Reporting Standards (IFRS) between 2005–2014. Motivated by the increased frequency and high concentration of BPGs in Europe, we study a sample of acquirers listed on the London Stock Exchange to assess the value relevance of BPGs (a) under discrepant disclosure practices (i.e., disclosure versus non- disclosure of the reasons for the gains), (b) before and after the revision of IFRS 3, and (c) considering different income classifications for BPGs (operating or non-operating earnings). BPGs, on average, are not significantly valued by the stock market. However, the post-IFRS 3 revision period, marked by stricter measurement criteria and additional disclosure requirements, witnessed a significant shift in firm valuations. BPGs for which the reason for the gain is disclosed are positively valued only in the post-IFRS 3 revision period. BPGs are consistently perceived as value irrelevant for those firms which fail to comply with mandated IFRS 3 disclosure requirements regarding the reason for the gain. Finally, BPGs classified as a component of non-operating income with sufficient note disclosure on the reason for the gain are significantly associated with prices and returns.

Men with childhood sexual abuse histories: Disclosure experiences and links with mental health.

There is limited research on the disclosure experiences of men who have experienced childhood sexual abuse and on how such experiences might impact mental health outcomes. The current study described men's disclosure experiences and examined the role of disclosure characteristics on mental well-being (internalizing and externalizing behaviors, substance use, resilience). Men (N = 253) from across Canada and the U.S. were recruited through websites for males with sexual abuse histories. Men aged 18-59 years anonymously completed an online study on their sexual abuse, disclosure experiences, and mental health outcomes. Findings indicated that 77.9% of men disclosed their sexual abuse, although they waited an average of 15.4 years before sharing their experience. Once disclosed, 64.4% of the men reported a positive response (e.g., support), while 35.6% reported a negative response (e.g., blame). Regression analyses indicated that a greater delay in disclosure predicted greater externalizing behaviors (B = .49, p < .05), although this was a small effect (Cohen's f2 = 0.02). Additional disclosure variables were associated with components of externalizing (aggressive and rule-breaking behaviors) and internalizing (somatic complaints) behaviors. These results require replication in future studies. However, they do suggest that efforts need to be undertaken to address the barriers that hinder men from disclosing their sexual abuse and to ensure that men are supported once they disclose.

A Current Evaluation of Independence as a Foundational Element of the Auditing Profession in the United States

SUMMARYThis paper summarizes '“Auditor Independence in the United States: Cornerstone of the Profession or Thorn in Our Side?”' (Church, Jenkins, and Stanley 2018). Their paper maintains that while the concept of independence is theoretically appealing, it is fraught with practical problems. Church et al. (2018) analyze the current oversight of auditor independence in the U.S. and the need for auditor independence from the perspective of various parties involved in the financial reporting process. In doing so, the paper discusses implications and challenges affecting one or more of these parties. Finally, Church et al. (2018) evaluate alternatives to the current regulatory approach of prohibiting various auditor client relationships to manage auditor independence. The paper concludes that increasing audit committees' responsibilities for monitoring auditor independence, along with additional disclosure about threats and safeguards to auditor independence, is worthy of further discussion and debate as a path toward addressing the auditor independence conundrum.

Does corporate governance influence the working capital management of firms: evidence from India

The study explores the impact of corporate governance on the working capital management of Indian firms. The investigation has been performed using balanced panel data procedures for a sample of 323 Indian non-financial firms listed in the Bombay Stock Exchange for the period 2007-2017. Findings of our study indicate that the CEO duality, one of the nine board indicators play a role in improving the working capital management of the sample firms. The default tax payment of the legal indicator and the additional information disclosure of the proactive indicators also have an effect on the working capital management of the Indian non-financial firms. This study is unique as it reveals the impact of corporate governance on the working capital management of Indian non-financial firms.