This model contains causal mechanisms that relate a number of project governance variables to project performance.
This paper contributes to the literature by documenting the improved performance of bankruptcy prediction models after including corporate governance variables.
The information for governance variables is reported by the risk governance framework.
The exceptions include (log) per capita real GDP in 1990, the governance variables, which were averaged over 1996 2011, and the dummy variable for small island developing states.
On the other hand, the traditional determinants documented in previous studies, such as size, leverage, corporate governance variables, etc., do have significant impact on disclosure decisions.
For corporate governance variables, CSR_Score (CSR_Rate) is negatively and significantly related to State control (0/1), demonstrating that state-owned entities have a relative lower CSR performance than non state-owned entities.
The governance variables are from the Worldwide Governance Indicators (Kaufmann et al. 2010), the UN classification of small island developing states was employed to create the dummy variable (see http://www.un.org/special-rep/ohrlls/sid/list.htm), and the remaining variables are from the World Development Indicators World Bankk 2013).
Table 1 Definitions of governance variables Variable Definition Sources Voice and accountability The extent to which a country's citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association, and a free media.
The quality of institution, in general is measured by some governance variables such as lack of corruption, accountability, and transparency etc.
