Public corporations in East Asia typically have low levels of transparency and disclosure quality. Some commentators and policy advisors believe that a closer adherence to international disclosure rules and the adoption of international accounting standards are essential for improving corporate transparency in the region (World Bank, 1998). Despite efforts to impose stricter reporting rules and standards, the general perception is that corporate transparency has been declining (Asian Wall Street Journal, November 24, 1999). While the new accounting rules may have increased the quantity of accounting information, investors have reservations about the quality of the reported Therefore, it is important for regulators and policy makers to understand the causes.
