Loading...
Firm Value and Regulatory Transparency: Evidence from the Adoption of a Centralized Electronic Disclosure System
Citations
Altmetric:
Video URL
Date
2026-01
Author
Collections
Files
Abstract
This paper examines the impact of adopting the Centralized Electronic Disclosure System (CEDS) on firm performance. A panel dataset of 19,149 firms across 28 countries from 1990 to 2023 is analyzed. The central argument is that firms adopting CEDS are more likely to experience improved performance with increased transparency, market liquidity, and informed trading, and reduced information asymmetry, cost of equity, and informed trading. The empirical results found by implementing fixed effect model indicate a positive relationship between CEDS implementation and firm value. The results remain consistent across different platform designs like in platforms with both high and low machine readability, high industry search features, high and low government-operated designs as well as with less user-friendly platforms, with the strongest effect observed with high search functionalities and low machine readability. In addition, we found that the impact of the implementation is weaker in countries with stronger institutional quality which might be due to the diminishing marginal effect, while in a weaker regulatory setting, the adoption of the system could result in major improvements in firm value as they might act as a governance system. Moreover, the positive impact can also be observed after running robustness test with restrictions made to the sample period, treatment status, as well as on an entropy balanced sample. Overall, the findings suggest that the regulators should place greater emphasis on the implementation of the system, particularly in countries with weaker regulatory environment, as the group benefits the most with its implementation.