Board characteristics and the level of compliance with IAS 1 in Bahrain

Abstract

This paper aims to investigate the association between board characteristics and the level of compliance by Bahraini listed firms with International Accounting Standards (IAS 1). A disclosure index is used to measure the extent of compliance with IAS 1. A multiple linear regression model was used to assess the association of board characteristics with the extent of compliance with mandatory IAS 1 disclosure requirements. The findings indicate that there is a significant and negative relationship between CEO non-duality, board size, ownership of top stockholders, and the level of compliance with IAS 1 disclosure. The results of the analysis provided in this research should be particularly relevant to regulatory bodies and standard setters. This study might also help when formulating forward-looking disclosure strategies by managing the composition and characteristics of the board of directors. Additionally, the study contributes to financial reporting literature relating to the GCC countries, mainly Bahrain.