Transparency and information disclosure practices have been considered as a
comprehensive corporate governance mechanism, both to mitigate agency costs by
increasing the monitoring of management actions and limiting manager’s
opportunities, and to promote the integrity of the securities market (Ashbaugh et al.,
2004; Chi, 2009). This study found that overall property companies that were
positively associated with the TM indicated that better transparency set a stronger
corporate governance mechanism, leading to good corporate performance.