The Transparency and Stock price: A study on CAC40

• Main Authors: Paul KALIN, 蔡家寶
• Other Authors: Te-Kuang Chou
• Format: Others
• Language: en_US
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/3wwx3a

碩士 === 南台科技大學 === 企業管理系 === 100 === Transparency & Disclosure are strongly related to corporate governance. They provide useful and reliable information about a company’s management to stakeholders and public. Companies in developed economy market have higher disclosure level than developing countries. According to a study of Standard & Poor (2003), France ranked the highest in the amount of information disclosed in the market. The purpose of this paper examines the relationship between transparency share price. With this objective, this paper explores the method to assess transparency and disclosure’s level and analyze the effect the share price on French stock market. Using Standard & Poor’s T&D rating, this paper examines the transparency and disclosure practices in a sample of 40 companies listed on CAC40. This methodology contents 98 attributes classified into 3 categories (ownership structure and investor relations, financial transparency and information disclosure, and board and management structures and processes) already used in many countries. The data are collected from the annual reports of these companies in 2010. The level of disclosure varies considerably across firms and numerous factors effect in the companies’ disclosure. Then, an analysis will be conducted to measure the effect of transparency on the share prices of these companies. This paper provides evidence that only stock turnover ratio is significantly related to the level of transparency. The higher the level of disclosure and the lesser the stock turnover ratio will be.