Financial instruments disclosure: the case of Qatari listed banks

Abstract

The aim of this study is to investigate the determinants of International Financial Reporting Standard (IFRS) 7 disclosures on Qatari listed banks. An un-weighted disclosure index and multiple regression analysis were employed to conduct this study; a sample from 2007 (the first year of IFRS 7's implementation) to 2012. The banks' characteristics employed are bank size, the existence of a risk management committee (RMC), net assets value (NAV), the cost to income (CTI) ratio, earnings per share (EPS) and the price earnings (PE) ratio. The level of financial instruments (FIs) disclosure was 52% in 2007 and by the end of 2012 it had reached 71%. Moreover, the study found that the FIs disclosure is significantly and positively associated with a bank's size and the presence of an RMC. This study contributes to our knowledge in a number of ways: for example, it indicates how IFRS 7's implementation has impacted on banks' financial instruments disclosures.