Factors affecting the corporate governance disclosure: An analysis of manufacturing firms of Pakistan

This study analyzes the impact of different governance related variables on the corporate governance disclosure level of Pakistani manufacturing firms. The study period is one year i.e. 2014 and it used a sample of 50 manufacturing firms which areclassified into five different categories. The analyses are done through OLS regression. A comprehensive disclosure index consisting the thirty different disclosure items is developed which served as dependent variable. Thirty disclosure items are included in the index according to the disclosure requirements of SECP code of corporate governance. Board independence, managerial ownership, foreign ownership, block holdings and audit firm status areused as corporate governance related independent variables. The results indicate that the CG disclosure level of selected manufacturing firms is positively influenced by board independence, foreign ownership, block holding ownership and audit firm status. However the results of managerial ownership variable are not statically significant and the hypothesis regarding to this variable is rejected. The study found that all the independent variables except managerial ownership are the important determinants of CG disclosure.