Abstract:
Purpose – The purpose of this paper is to examine the interaction between corporate disclosure and
foreign share ownership on the Ghana Stock Exchange (GSE).
Design/methodology/approach – The paper follows the trinary procedure of Aksu and Kosedag
and uses the Standard & Poor’s transparency and disclosure items in the construction of the disclosure
index. Therefore, the paper adopts a panel data analysis covering a period from 2002 to 2007 using the
seemingly unrelated regression approach.
Findings – The results indicate a statistically significant interaction between corporate disclosures
and foreign share ownership among the sample firms. The market value of equity and market-to-book
value ratio is documented; free cash flow and financial leverage have statistically significant
relationships with foreign share ownership.
Originality/value – This is the first of its kind in the country that considers the impact of corporate
governance and disclosure on foreign share ownership despite the numerous studies carried out on the
GSE.
