WORLD CLASS BUSINESS: Common regulatory themes in disclosure, PSI, and governance

Common regulatory themes in disclosure, PSI, and governance (A pilot study)

Prof. John Holland (University of Glasgow)

Project reference 5-366

Main objectives

A pilot study of governance, disclosure and PSI regulation to investigate how the regulatory process takes into account the relationship between corporate voluntary disclosure, price sensitivity and corporate governance: what problems do regulators experience with the current regulating process and how are these problems managed?

Progress to date

In the past 12 months I have conducted the following interviews with:

  • The UKLA (UK Listing authority) to discover how the price sensitive information guidelines are changing with the SEC Fair Disclosure (FD) rules.
  • The NYSE to probe the ideas behinds FD in the USA
  • The ASB to understand how the ASB regulates public disclosure in financial statements.
  • The IASC - for the same research purpose
  • I have previously interviewed participants in the corporate governance regulatory process.

I have also completed interviews with the DTI, Treasury, and the Hampel Report secretary in 1998. In April 1998 I presented a paper at the EAA. This was based on old field work and was an attempt to think through the eventual ICAEW report. It covered the main areas of the ICAEW project.

I have completed a chapter in new book on regulation - this just looks at the regulation of price sensitive information. However, it has linked the research to a wider literature on regulation. The book is part of an EU funded programme on the general impact of regulation. This was published in June 1999. I have also improved my conceptual framework for this research through my lecture and tutorial work on a new course at Glasgow University on 'Financial markets and financial institutions ' - 1998 -2001.

This was intended to be a pilot study before the main project. I have conducted the agreed pilot interviews with members of the three UK regulatory bodies, the ASB, the Stock Exchange and the Hampel committee. As part of my other research projects I have interviewed 30 FTSE 200 companies, 40 out of the top 50 financial institutions, and briefly investigated their views on this regulation.

Outputs to date

A working paper - which now has to be updated in light of recent field work.

Future work, intended outputs and completion date

The above has allowed me to clarify the research problem and to identify the main questions for further research. Perhaps we should now consider writing a research report which summarises the literature, my recent interviews and come up with some analysis of what the regulatory problems are here in the connected fields of corporate disclosure, PSI, and governance. The most likely form of publication would be an exploratory research report for ICAEW and an academic article.

Information updated 1 May 2001.