Internet-based voluntary disclosure by French companies
The objective of this doctoral research is to study Internet-based disclosure practices in France. First, we examine the impact of corporate governance on Internet-based disclosure strategy. The results indicate that firms with more dispersed ownership disclose more information on the Internet; companies with a two-tier board system disseminate less information on their website than firms with a one-tier board; for companies in the one-tier system, we found that the level of Internet-based disclosure is negatively related to CEO-Chairman duality. Moreover, the creation of monitoring committees inside the board can improve online information transparency. Second, we examine the economic impact of Internet-based disclosure in the French capital market. The results show a negative relation between the amount of discretionary information published via Internet and the relative spread. We also observe that enhanced Internet-based disclosure can reduce the stock's volatility. These results indicate that quoted companies can reduce information asymmetry and investor uncertainty by enhancing information transparency via Internet. Third, we study the tone of financial announcements in order to complete our analysis of discretionary disclosure. Results from a content analysis show that the level of optimism in the tone of a financial announcement can be an indicator of future firm performance. Moreover, framing the financial announcement in a more optimistic angle causes investors to think positively about the future outlook of a firm.