The Impact of External Monitoring and Public Reporting on Business Performance in a Global Manufacturing Industry
研究第三方监督和公开报告如何影响全球服装业企业的财务绩效和股票市场反应，发现外部监督能降低信息不对称并帮助评估全球运营风险。
This study examines the importance of external monitoring and public reporting on the performance of firms in the global apparel industry. By focusing on the relevance of company reputation in the global community, the authors examine financial performance and stock market reaction to the release of information describing the manufacturing practices of firms made available by a third-party monitor. Using agency theory as a predictive framework, industry-wide changes in market measures of company risk as a result of third-party monitoring are found, suggesting that society values such external reports. The authors’ findings are important to business and society because they bridge the gap in knowledge about how voluntary compliance programs are supplemented by external monitoring and reporting for firms operating in the global environment. This work suggests that external monitoring is valuable to business and society by reducing information asymmetry between the two groups and encouraging accurate assessment of the risks associated with global operations.