Corporate governance structures and systems vary greatly across countries. The corporate
governance system across the world can be classified, based on the degree of ownership and
control and the identity of controlling shareholders, into two broad categories—the outsider
systems (notably the US and the UK) characterized by widely dispersed ownership and the
insider systems (notably continental Europe and Japan) characterized by concentrated
ownership or control (Maher and Andersson, 1999). Firm ownership is an increasingly
influential form of corporate governance (Connelly et al., 2010).
Corporate governance and disclosure practices of firms are influenced by various variables
such as board size, board independence, board committees, cross-listing of firms, CEO duality,
auditor selection, nature of industry (manufacturing versus service firms, traditional versus knowledge-intensive firms, and tangible assets versus intangible assets dominated firms), and
firm characteristics (size, age, leverage, origin and types of firms, viz., public sector, private
sector and foreign firms). This study aims to contribute to the understanding of corporate
governance and disclosure issue by analyzing the specific governance variable, viz., ownership
concentration of the firm.