This analysis reveals how foreign and domestic institutional investors enhance contingent liabilities disclosure, indicating a need for improved transparency standards.
Key Points
Institutional ownership significantly enhances contingent liabilities disclosure, with foreign investors exerting greater influence than domestic investors.
Regression analysis of 5,483 firm-year observations shows larger firms generally have higher disclosure levels due to increased scrutiny from institutional investors.
The study highlights the roles of institutional investors in reducing information asymmetry and improving corporate transparency in India.
Sectoral analysis indicates stricter compliance and disclosure in Basic Materials and Consumer Non-Cyclicals, compared to lower levels in Financial and Technology sectors.