Hierarchical complexity and corporate opaqueness

This study examines the impact of hierarchical complexity on corporate opaqueness and how this relationship varies under moderating effect diversification. We hypothesise that increases in firms’ are related to greater between firm outside investors capital market. Using a sample U.S. firms spanning 5 years from 2012 2016, we find statistically economically significant, positive opaqueness. The results further imply is alleviated when there diversification involved business operations structures.