APPENDIX A. Control variables indicators

APPENDICES

APPENDIX A. Control variables indicators

Table A1: Financial development indicator (2005)

Source: World Bank

Table A2: Rule of law indicator (2005)

Country Rule of law index

Argentina -0.56

Brazil -0.41

Chile 1.20

Mexico -0.48

Source: Kaufmann et al. (2006)

Country Market

capitalization/GDP

Argentina 33.6%

Brazil 59.6%

Chile 118.4%

Mexico 31.1%

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APPENDIX B. Expected signs from the independent variables coefficients

Table B1: Expected signs

Hypotheses Independent variables (expected sign)

Firm size (H1) Assets (+), Market Capitalization

(+) External capital dependence

(H2)

Leverage (+), ROA (-), Cash balance (-)

Ownership concentration (H3)

Largest shareholder (-)

Cross-listing status (H4) Single-listing status (-) Financial development (H5) Market cap/GDP (+) Rule of law (H6) Rule of law indicator (+)

APPENDIX C. Summary of voluntary disclosure scores per country

Table C1: Observed website disclosure by country

Countr

y Webs

ite AR20

06 CG-

Secti on

Mgr- Name s

Board - Name s

Owne rs Byla

ws Insid e share s

Disclos ure score

N

Argenti na

0.92 0.57 0.3 0.3 0.3 0.4 0.05 0 2.85 20

Brazil 0.98 0.37 0.93 0.93 0.93 0.93 0.90 0.03 6 31 Chile 0.94 0.5 0.34 0.92 0.92 0.86 0.24 0 4.63 26 Mexico 0.93 0.41 0.57 0.71 0.78 0.32 0.53 0 4.27 28 Total 0.94 0.46 0.53 0.71 0.73 0.63 0.43 0.007 4.44 10 5

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APPENDIX D. Descriptive statistics for the model

Table D1: Descriptive statistics

Mean Standard

Deviation Min Max N

Leverage 0.52 0.22 0.01 1.99 105

ROA 0.08 0.06 0 0.31 105

Cash balance

0.06 0.08 0 0.47 104

Total assets 21.58 1.55 15.14 25.32 105

Market Cap 21.59 1.93 14.83 25.79 104

Largest

owner 0.47 21.96 7.12 90.37 102

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APPENDIX E. Summary of the statistical model

Table E1: Regression results (Voluntary website disclosure)

Web disclosure (1) (2) (3) (4) (5) Total assets 0.347 0.367 0.413 0.400

(2.83) *** (3.01) *** (3.35) *** (3.25) ***

Market cap 0.272

( 2.75) ***

Leverage 1.618 (1.06)

Cash balance -0.586

( 0.256)

ROA 0.665

( 0.195)

Largest owner -0.046 -0.048 -0.048 -0.049 -0.050 (4.81) *** (5.001) *** (4.99) *** (5.08) *** (5.19) ***

Listing status -0.839 -0.848 -0.980 -0.962 -9.12 (2.19) ** (2.19) ** (2.48) ** (2.49) ** (2.37) **

Market cap/GDP 1.481

(2.80) ***

Rule of law 4.62

(1.86) *

Observations 105 105 105 105 105

Chi-square 56.389 *** 51.432 *** 55.376 *** 62.799 *** 57.976 ***

Pseudo R

0 .429 0.403 0.426 0.464 0.438

Robust z statistics in parenthesis, * significant at 10%, **significant at 5%, ***significant at 1%

2

See note.

2

We could not find statistical significance for hypothesis 2 after running other regressions not included in Table 1, using the proxies for external capital dependence with the different possible combinations.

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