Does expanding disclosure regulation sanctions improve market liquidity?

Theories and empirical evidence seem to support the argument that better corporate disclosures improve liquidity, which is important because it helps lowering cost of capital. Disclosure regulations around the world are enacted to force more timely and equal disclosure from firms, some explicitly states enhancing market liquidity as one of their goals [see Corporate disclosure: Strengthening the financial reporting framework: Department of Treasury 2002, Commonwealth of Australia, p.129]. To improve corporate compliance with these regulations, regulators around the world have made changes to these laws in the recent years and many involved expanding sanctions.