Disclosure Strategies: Corporate Transparency Enactment and Investor Trust
Abstract
This paper explores the effect of structurally enacted governance, such as board membership rules, versus process enacted governance, such as disclosure practices, on investor trust. Certain organizational factors are proposed due to their ability to inform trust propensity and transparency enactment. Regulatory oversight, organizational structure and investor salience are considered in light of their effect on relational and transactional approaches to a company’s investors