Accounting disclosure and its impact on the performance of companies and financial institutions in the Republic of Yemen

Abstract

The purpose of this study is to study the impact of accounting disclosure in terms of legal factors, culture, profitability, and size on the value of the company in Sana’a Governorate in the Republic of Yemen. Therefore, the lack of accounting disclosures in most of these companies led to a decrease in the value of the companies. The theoretical model based on agency theory was used to discover the effect of accounting disclosures on company value. A probability sampling method, which is a random sampling method, was used to collect data. Four hypotheses were tested through 86 questionnaires. Listed companies were included in the community, and all accountants were selected in the sample. This study's analysis was conducted using the partial least squares method. The findings demonstrated that size and culture variables have a positive and significant influence on firm value. Others believe that legal and financial considerations are unimportant. As a result, corporate management may be motivated and encouraged to share information that influences stakeholder decisions favorably and increases company value.