DO BOARD COMMITTEES’ FEATURES AFFECT CORPORATE GOVERNANCE DISCLOSURE? – THE CASE OF FINANCIAL INSTITUTIONS

Abstract

The purpose of our empirical study is to assess the relationship between board committees features and the level of disclosure in case of banking institutions listed on London Stock Exchange. The research methodology used for achieving our goal is based on econometric analysis using statistical tools - correlations for identifying the relationships and regressions for assessing them - all of these being performed using SPSS software. In this respect, firstly, we developed a disclosure index made of three sub-indices, one for each type of disclosure: mandatory, recommended and voluntary. The main features considered for assessing board committees: their existence and independence of membership. The results of the performed analysis reveal significant positive influences of board committees features on the level of disclosure, thus confirming our assumptions that the higher the quality of board committees, the higher the level of disclosure.

DOI: http://dx.doi.org/10.5755/j01.em.17.2.2211