Accounting Disclosure, Governance Standards and Innovation Activities in Emerging Markets

  • Zhenxiang Chen Wuhan Yangze Business University
  • Ming Li Wuhan Yangze Business University
  • Liang Song Michigan Technological University
  • Yanan Xing Huaxin Trust Limited Company
  • Zhaoguo Zhang Huazhong University of Science and Technology


We investigate how investor protection resulted from country-level and firm-level governance standards influence the relationship between market disciplines resulted from firm-level accounting disclosure and innovation activities. Employing a sample across 14 emerging markets, evidence confirms that the effects of firm-level accounting disclosure on innovation activities are more important in a country with weaker governance standards and for firm with poor corporate governance. The results suggest that market disciplines can substitute for investor protection.

Author Biography

Liang Song, Michigan Technological University
Asistant Professor of Accounting
Research Articles