Abstract
Purpose: The paper aims to access the impact of financial transparency and disclosure
on stock market capitalization. The financial transparency and disclosure measure the
extent to which the firms have open firm-specific information for the investors. More
transparency leads to strong investor protection.
Design/methodology: The study has been conducted on the Pakistan Stock Exchange
from period 2008 to 2017. Descriptive Statistics, Correlation, and Regression Analysis
have been used to find out the impact of the above-mentioned variables on the Stock
market Capitalization.
Findings: The results support our hypothesis that information disclosure and strength of
investor protection has a positive significant impact on market capitalization.
Research Limitation: While our study focuses on the significance of information
disclosure and transparency, it does not measure the quality and accuracy of the
information disclosed.
Practical Implication: The results might be of interest to potential investors who will be
able to diversify their investment in a way that minimizes risks based on the disclosure
practices of the firms.
Originality/value: The research contributes to the finance literature by finding out the
impact of information disclosure on stock market capitalization in the Pakistan Stock
Exchange on recent data.
Areeba Khan, Sulaman Hafeez Siddiqui, Ayusha Fayyaz. (2020) THE IMPACT OF TRANSPARENCY AND DISCLOSURE ON STOCK MARKET CAPITALIZATION THROUGH THE DIVIDEND YIELD EIDOLON , International Journal of Management Research and Emerging Sciences, Volume 10, Issue 1.
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