A computational approach to transparency in corporate governance across borders


  • Wil Martens
  • Diu Thi Huong Pham*
  • Justin Matthew Pang


This article delves into the intricate relationship between information asymmetry and financial reporting comparability, with a particular emphasis on earnings management (EM) in cross-border corporate governance settings. Utilising data from 2,475 non-financial firms across 19 frontier markets from 2003 to 2019, the study employs pooled OLS, fixed effects, and between-effects models to scrutinise the impact of factors like financial comparability, reputable auditing, analyst coverage, and legal systems on earnings management. The findings reveal that enhanced financial comparability, facilitated by strong governance mechanisms such as reputable auditors and analyst coverage, leads to a reduction in earnings management and information asymmetry. Interestingly, leverage does not serve as a constraining factor as commonly believed. The results contribute to the growing body of literature on the application of data science, and challenge the pecking order theory (POT), while lending support to the knowledge-based view (KBV) and convergence theories, thereby offering valuable insights into the role of corporate governance in mitigating information asymmetry.


accounting comparability, accruals earnings management, frontier markets, information asymmetry



Classification number


Author Biographies

Wil Martens

College of Management, National Sun Yat-Sen University, Kaohsiung, Taiwan

Diu Thi Huong Pham

Vietnam National University of Agriculture, Trau Quy Ward, Gia Lam District, Hanoi, Vietnam

Justin Matthew Pang

RMIT University, 521 Kim Ma Street, Ngoc Khanh Ward, Ba Dinh District, Hanoi, Vietnam




Received 2 November 2023; revised 10 November 2023; accepted 20 November 2023

How to Cite

Wil Martens, Diu Thi Huong Pham, & Justin Matthew Pang. (2023). A computational approach to transparency in corporate governance across borders. The VMOST Journal of Social Sciences and Humanities, 65(3), 51-65. https://doi.org/10.31276/VMOSTJOSSH.65(3).51-65



Economics and Business