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This paper analyze the association between compensation disclosure and firm value based on the notion that comprehensive information on compensation provides higher transparency signals and lower agency conflict. The evidence shows that firms voluntarily disclosing comprehensive information on director and executive compensation have higher market value. However, the comprehensive disclosure provided by firms using large proportion of reserved bonus and the partial or required disclosure help fewer for the increased market value. Furthermore, when the level of board independence is lower, that is, the ownership is concentrated or controlled by fewer outsiders.
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