Working Paper

The Dark Side of Disclosure : Evidence of Government Expropriation from Worldwide Firms

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Liu, Tingting
dc.contributor.author
Ullah, Barkat
dc.contributor.author
Wei, Zuobao
dc.contributor.author
Xu, Lixin Colin
dc.date.accessioned
2015-06-02T14:50:22Z
dc.date.available
2015-06-02T14:50:22Z
dc.date.issued
2015-05
dc.description.abstract
This paper studies the effects of voluntary accounting information disclosure through auditing on firm access to finance, exposure to corruption, and sales growth. Relying on a data set of more than 70,000 firms in 121 countries, the analysis finds that disclosure can be a double-edged sword. On the one hand, audited firms exhibit a slightly lower level of financial constraints than unaudited firms. On the other hand, audited firms face a significantly higher level of corruption obstacles. The net effects of voluntary information disclosure on firm growth are negative, which can largely be explained by the fact that most of the countries in the sample are developing countries where institutions are weak. The beneficial effect of disclosure increases as a country’s property rights protection improves. The qualitative results are robust to considerations of the endogeneity of auditing and to alternative measures of corruption and financial constraints. The findings reveal the dark side of voluntary information disclosure: exposing firms to government expropriation where institutions are weak.
en
dc.identifier
http://documents.worldbank.org/curated/en/2015/05/24440274/dark-side-disclosure-evidence-government-expropriation-worldwide-firms
dc.identifier.uri
http://hdl.handle.net/10986/21989
dc.language
English
dc.language.iso
en_US
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 7254
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
GROWTH RATES
dc.subject
LINE OF CREDIT
dc.subject
DEPOSIT
dc.subject
LINES OF CREDIT
dc.subject
COMPETITORS
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RED TAPE
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INSTITUTIONAL ENVIRONMENT
dc.subject
FINANCIAL MARKET DEVELOPMENT
dc.subject
FINANCING
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INFORMAL SECTOR
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COUNTRY FIXED EFFECTS
dc.subject
INCOME
dc.subject
FOREIGN OWNERSHIP
dc.subject
CONSUMER PRICE INDICES
dc.subject
PRIVATIZATION
dc.subject
GOVERNMENT
dc.subject
PROPERTY RIGHTS
dc.subject
EXCHANGE
dc.subject
LIQUIDITY
dc.subject
DEVELOPING COUNTRIES
dc.subject
TAX COLLECTION
dc.subject
POLITICAL ECONOMY
dc.subject
CAPITAL STRUCTURE
dc.subject
WORLD DEVELOPMENT INDICATORS
dc.subject
COMPANIES
dc.subject
FINANCIAL STATEMENTS
dc.subject
INFORMATION SHARING
dc.subject
LOAN
dc.subject
FINANCIAL STATEMENT
dc.subject
FIRM SIZE
dc.subject
PRICE
dc.subject
TAX
dc.subject
CORRUPTION
dc.subject
INVESTMENT OPPORTUNITY
dc.subject
DISCLOSURE
dc.subject
INDEPENDENCE
dc.subject
BANK LENDING
dc.subject
EXTERNAL FINANCE
dc.subject
SMALL BUSINESS
dc.subject
STATES
dc.subject
FUTURE PROSPECTS
dc.subject
STATE OWNERSHIP
dc.subject
CREDIT RATINGS
dc.subject
LEGAL CONSTRAINTS
dc.subject
CURRENCY
dc.subject
INITIAL PUBLIC OFFERINGS
dc.subject
MARKET DEVELOPMENT
dc.subject
FINANCIAL INSTITUTION
dc.subject
REAL GROWTH RATE
dc.subject
FOREIGN COMPANY
dc.subject
FINANCIAL OBSTACLES
dc.subject
CORPORATE FINANCE
dc.subject
MARKETS
dc.subject
FIRM
dc.subject
GOVERNANCE INDICATORS
dc.subject
LENDERS
dc.subject
PRIVATE SECTOR DEVELOPMENT
dc.subject
ECONOMIC REFORMS
dc.subject
LICENSING
dc.subject
ENTERPRISES
dc.subject
TAX COLLECTIONS
dc.subject
AGENCY COSTS
dc.subject
CAPITAL INVESTMENTS
dc.subject
FINANCIAL HEALTH
dc.subject
TAXES
dc.subject
INFORMATION ASYMMETRY
dc.subject
INVESTMENT DECISIONS
dc.subject
EXPENDITURE
dc.subject
CLIENT
dc.subject
FISCAL
dc.subject
INVESTORS
dc.subject
FIRMS
dc.subject
INDIVIDUAL FIRM
dc.subject
ECONOMIC PERFORMANCE
dc.subject
BUSINESS ENVIRONMENTS
dc.subject
OWNERSHIP STRUCTURE
dc.subject
TRANSPARENCY
dc.subject
STATE GOVERNMENT
dc.subject
FINANCIAL CRISIS
dc.subject
STARTUPS
dc.subject
PARTIES
dc.subject
FUTURE
dc.subject
REPUTATION
dc.subject
COUNTRY DUMMY
dc.subject
STATE-OWNED ENTERPRISES
dc.subject
UNDERDEVELOPED MARKETS
dc.subject
ENTERPRISE
dc.subject
FIRM PERFORMANCE
dc.subject
TAX RATES
dc.subject
MARKET
dc.subject
LOCAL CURRENCY
dc.subject
GOVERNMENT EXPROPRIATION
dc.subject
COMPANY
dc.subject
REGULATION
dc.subject
FINANCIAL OBSTACLE
dc.subject
DIVERSIFICATION
dc.subject
CITIZENS
dc.subject
GOVERNANCE
dc.subject
EXPOSURE
dc.subject
INSURANCE
dc.subject
SOCIAL CAPITAL
dc.subject
TAXATION
dc.subject
MANUFACTURING INDUSTRIES
dc.subject
ECONOMIC DEVELOPMENT
dc.subject
STATE
dc.subject
INVESTOR
dc.subject
GOVERNMENT OWNERSHIP
dc.subject
FIXED ASSETS
dc.subject
SECURITY
dc.subject
FINANCIAL DEVELOPMENT
dc.subject
LEGAL SYSTEM
dc.subject
FINANCIAL MARKET
dc.subject
GROWTH RATE
dc.subject
INVESTMENT
dc.subject
FINANCIAL INTERMEDIATION
dc.subject
SHARE
dc.subject
INVESTOR PROTECTION
dc.subject
GOVERNANCE INDICES
dc.subject
FINANCIAL INFORMATION
dc.subject
SALES GROWTH
dc.subject
BUSINESS ENVIRONMENT
dc.subject
BANKING
dc.subject
BUSINESS LICENSING
dc.subject
INSTITUTIONAL DEVELOPMENT
dc.subject
FOREIGN COMPANIES
dc.subject
LAW
dc.subject
INVESTMENTS
dc.subject
EXTERNAL FINANCING
dc.subject
CORPORATE DISCLOSURES
dc.subject
SMALL FIRMS
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POOR GOVERNANCE
dc.subject
AUDIT
dc.subject
CUSTOMERS
dc.subject
SUPPLIERS
dc.subject
FIRM GROWTH
dc.subject
STRONG GOVERNANCE
dc.subject
CAPITAL INVESTMENT
dc.subject
GOVERNMENTS
dc.subject
BUSINESS PERFORMANCE
dc.subject
SEE
dc.subject
FINANCIAL CONSTRAINTS
dc.subject
POLITICAL INSTABILITY
dc.subject
PRICES
dc.subject
COST OF CAPITAL
dc.subject
COMPETITION
dc.subject
CORPORATE GOVERNANCE
dc.title
The Dark Side of Disclosure
en
dc.title.subtitle
Evidence of Government Expropriation from Worldwide Firms
en
dc.type
Working Paper
en
okr.crosscuttingsolutionarea
Public-Private Partnerships
okr.date.disclosure
2015-05-04
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/2015/05/24440274/dark-side-disclosure-evidence-government-expropriation-worldwide-firms
okr.globalpractice
Governance
okr.globalpractice
Finance and Markets
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-7254
okr.identifier.externaldocumentum
090224b082e40ce3_3_0
okr.identifier.internaldocumentum
24440274
okr.identifier.report
WPS7254
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/05/05/090224b082e40ce3/3_0/Rendered/PDF/The0dark0side00from0worldwide0firms.pdf
en
okr.topic
Finance and Financial Sector Development :: Financial Regulation & Supervision
okr.topic
Finance and Financial Sector Development :: Microfinance
okr.topic
Finance and Financial Sector Development :: Securities Markets Policy & Regulation
okr.topic
Governance :: Governance and the Financial Sector
okr.topic
Governance :: Multinational & Corporate Governance
okr.topic
Governance :: National Governance
okr.topic
Private Sector Development :: Corporate Data and Reporting
okr.topic
Private Sector Development :: Legal Regulation and Business Environment
okr.unit
Finance and Private Sector Development Team, Development Research Group

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