An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

Michael Grüning
European University Viadrina

Abstract: A network of hypotheses linking four driving forces of corporate disclosure is developed. Factors are empirically evaluated simultaneously, hence, including secondary effects using structural equation modeling with a correct weight matrix based on a sample of 30 German and 30 Polish companies listed in the respective premium stock market segment. To obtain comparable results the European PRISM project approach is modified to measure corporate disclosure quality in seven communication dimensions formed from 118 items for each company. By analyzing the entire network of causal relations the linked and dependent factors driving corporate disclosure can be revealed. Firm size and industry do not directly influence corporate disclosure but are mediated by crosslisting. The home country effect is of a direct and indirect nature that is mediated by firm size and crosslisting. Accordingly, crosslisting plays a central role in mediating most of the secondary effects on corporate disclosure.

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