Level Of Corporate Disclosure Research Articles

Relationship Between Board Characteristics and Level of Corporate Disclosure Among Listed Companies in Tanzania

This paper examined the relationship between board characteristics and Level of corporate Disclosure (LCD) among Tanzanian listed companies. Relationships between board size, board independence; directors’ remuneration and LCD were examined. The 105 firm-year observations for 21 listed companies in Tanzania from 2016 to 2020 were used. The study used the agency theory. An explanatory research design was employed. Balanced panel data for analysis were gathered using a survey method. Data were analyzed using descriptive and inferential statistics. Regression analysis was used in testing hypotheses. Findings showed that board size, board independence, directors’ remuneration were positively related to LCD. It was recommended that listed companies should appoint a higher proportion of independent directors to their boards. Independent directors can provide impartial oversight and are more likely to prioritize transparency and disclosure. Companies are adviced to optimize board size aim for a board size that is appropriate for their specific needs and industry. Moreover, listed companies should adopt transparent and fair director remuneration practices. This includes disclosing the structure of director compensation, including; salaries, bonuses, stock options, and other benefits. Policymakers and regulators should consider implementing or strengthening regulations related to board composition, independence, and disclosure practices.

Determinants of corporate disclosures: An empirical test of political economy theory

The principle objective of this study was to employ political economy theory in order to examine the determinants that impact the corporate disclosure of listed companies in Sri Lanka. Data was gathered from 122 companies over a period of eight years, from 2012 to 2019. Corporate disclosures of Sri Lankan listed corporations were analysed using Partial Least Square Structural Equation Modelling (PLS-SEM). Determinants of corporate disclosures have been examined in light of political economy theory, namely legitimacy, isomorphic effects, and stakeholder power. The amount of corporate disclosure was quantified using an unweighted index in this research. This study found that legitimacy, isomorphic influences, and stakeholder power are positively associated with the level of corporate disclosure. Findings suggest that managers use corporate disclosures as a strategy to legitimize themselves, manage stakeholder power, and cope with isomorphic influences. This is the first research so far to utilize the PLS-SEM to identify the determinants of corporate disclosures. Considering emerging economies across the globe, the findings of the study provide valuable insights for companies to understand how political economy theory affects the level of corporate disclosures.

Insights into Disclosure Practices and Profitability: Empirical Findings from the Insurance Industry in Bangladesh

Corporate disclosure has a significant impact on meeting the information needs of the different stakeholders for rational decision-making. The study investigates the extent of disclosure in the annual reports. It examines the relationship between the level of corporate disclosure and profitability characteristics of the insurance companies operating in Bangladesh. In this current study, six insurance companies were taken as samples enlisted in the Dhaka Stock Exchange using the purposive sampling technique. The study results reveal that the mean values of the overall disclosure percentage of sample insurance companies have been increasing gradually in the first year and last year. The study results also reveal a significant difference in corporate disclosure percentages among the sample insurance companies. The multiple regression analysis with ordinary Least Squares (OLS) regression model is employed to assess the relationship between profitability characteristics and the corporate disclosure percentages. The results report a positive significant relationship between the corporate disclosure percentages and corporate profitability characteristics like earnings per share, gross premium, net premium, net profit after tax, return on assets, return on equity, and underwriting profit. Still, there is an insignificant relationship between net profit before tax and corporate disclosure percentages of the sample insurance companies over the period under study.

Relationship between the Corporate Disclosure and Profitability: An Empirical Analysis of the Commercial Banks in Bangladesh

Disclosure is essential for interested users to make logical decisions. This study evaluates the extent of corporate disclosure and its relationship with the profitability attributives of banking companies in Bangladesh. To achieve the study purpose, this study has taken five private commercial banks in Bangladesh for five years from 2016 to 2020. The required data have been collected mainly from secondary sources. To reach the study findings per study objectives, the researcher has employed different statistical techniques, analyzed the various annual reports to calculate the level of corporate disclosure, and identified the different profitability attributives. The results of descriptive statistics show that the highest mean value is visible in the case of SB_3, and the lowest mean value is visual in the case of SB_4, but SB_4 and SB_5 show the lowest and highest standard deviation values. The ANOVA test results show significant variation in the level of corporate disclosure and different profitability attributes among the sample banks over the study period. The simple regression results show a substantial relationship between the corporate disclosure scores and profitability attributives. The effects of multiple regression present that other profitability attributes like profit before tax and earnings per share significantly impacted corporate disclosure scores. However, the remaining attributes, like operating profit, profit after tax, return on equity, and return on asset, had an insignificant positive impact on the corporate disclosure scores of the sample banks over the study period. This research study has recommended that the management of the banking companies should take necessary steps to ensure an adequate level of corporate disclosure in reporting practices because the different stakeholders make any decision based on disclosing information.

Relationship between Corporate Disclosure Score and Different Corporate Determinants: Evidence from Conventional Banks in Bangladesh

The main goal of this study is to evaluate the relationship between corporate disclosure scores and their different determinants. To achieve this aim, secondary data have been employed and collected from the five years annual reports of the ten sample banks. To reveal consolidated disclosure scores, this study used an unweighted disclosure checklist. It has been found that the mean value of the tight disclosure score of the sample bank_9 is 76.45 percent which is higher, and the lowest mean value of the consolidated disclosure score is 71.24 percent, which is visible in the case of sample bank_8. Furthermore, there is no significant variation in tight disclosure scores among the sample banks over the study period. This study has considered the various corporate determinants and employed the ANOVA test and multiple regression analysis to evaluate the relationship between the different corporate determinants and corporate disclosure scores. The results of the ANOVA test illustrated that there is significant variation in other determinants of corporate disclosure among the sample banks. The findings of multiple regression analysis indicate that the R square value is 0.717, which confirms that the dependent variable, like the level of corporate disclosure, is explained by 71.70% of the independent variables, such as total assets, total revenues, number of branches, number of employees, meal members, female members, independent directors, audit committee members, capital adequacy ratio, debt equity ratio, loan deposits ratio and debt assets ratio. The results of the model summary report that the significance level of the overall model is lower than 5%, which means that the entire independent variables have significantly influenced the corporate disclosure score.

Re-examination of the internet financial reporting determinants

PurposeThe purpose of this paper is to shed light on the relationship between the Internet Financial Reporting (IFR) levels and corporate characteristics. It is assumed that the relationship between the disclosure level and its determinants is known. Nevertheless, the results of the empirical studies confirm that it is a naive assumption. As a result, the author suggests refusing the conventional methods of econometric analysis.Design/methodology/approachThe research methodology consisted of four stages: First, the author tried to select the “best” model using the Akaike Information Criterion (AIC). Second, the author checked out the stability of the relationship between corporate disclosure level and its determinants. Third, the regression analysis was used. Finally, the author proposed a “genetic-fuzzy system” for studying the determinants of corporate disclosure. The firms' yearly data collected consisted of a random sample of 152 Tunisian companies' websites.FindingsThe results show that the variables that should be used to explain the level of IFR are firm size, ownership concentration, firm performance and liquidity. The Chow forecast test shows that there is a significant and large difference between the actual and the predicted values. Consequently, the author suggests using non-parametric methods, particularly a methodology based on fuzzy logic concepts and genetic algorithms. This technique would allow the author to discover the true form of the relationship between the disclosure level and its determinants. Regarding the hypotheses of this study, the findings of the “genetic-fuzzy system” validate all the hypotheses. Indeed, the arguments of the agency theory, the signaling theory, and the political cost hypothesis were supported using the “genetic-fuzzy system.”Originality/valueThe originality of the paper lies in providing a new research methodology based on several statistical tools for dealing with an important research topic in accounting and finance, i.e. the determinants of IFR. The results of this study can be considered as a starting point to develop a unified methodology.

Comparative Analysis on Corporate Disclosure Practices of Listed Companies in ASEAN-5 after the Adoption of the Renewal Regional Disclosure Standards

This study aims to assess and compare the extent of corporate disclosure of the countries that have already implemented the renewal ASEAN disclosure standards with the countries that have not implemented yet. The empirical result indicates that overall picture of corporate disclosure in the ASEAN is in a good progression, with an increasing trend. Then, an independent t-test analysis addresses that the renewal ASEAN disclosure standards could have an effect on the level of corporate disclosure, especially in terms of non-financial and strategic information. But, it has no impacts on financial information. Therefore, it can be concluded that the regional disclosure standards might be one of the supportive factors for enforcing businesses to disclose more corporate information to the public. With this finding, it could alert regional regulators by providing the weaknesses of the current activities related to economic integration and guiding the direction for further development.

The Effects of Board Compositions and Audit Committee Characteristics on Information Disclosure Practices: A Case of Singapore

This paper aims to investigate the effects of board compositions and audit committee characteristics on disclosure practices in Singapore. The ASEAN Disclosure Index, covering 212 items in 3 domains: Financial Information, Non-Financial Information, and Strategic Management Information, was constructed to capture disclosed information of 22 listed companies from 2011-2015, made out of 110 observations. In the analytical procedure, multiple regression models were tested through EVIEWS 10 with an ordinary least squares (OLS) method to estimate the connection between the predictors and the dependent variable. An empirical result reports that board size, audit committee independence, a number of audit committee meetings and a number of audit committee participation rates have a positive relationship with the level of corporate disclosure while CEO duality has a negative association with information disclosure practices. For other variables covering board independence, a number of board meetings, a number of director participation rates and gender diversity, no significant relationship was found. The findings might help regulators in enhancing the level of corporate disclosure in Singapore as well as neighboring countries in Southeast Asia region. Furthermore, this study also contributes to the literature by offering a new instrument for assessing the extent of corporate disclosure in Southeast Asia region and also providing some insight into the relationship between corporate governance mechanisms on information disclosure practices based on the Asia’s developed country perspective.

Corporate boards, ownership structures and corporate disclosures

PurposeThe purpose of this paper is to investigate the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and voluntary disclosure behaviour.Design/methodology/approachMultivariate regression techniques are used to estimate the effect of corporate board and ownership structures on mandatory and voluntary disclosures of a sample of Libyan listed and non-listed firms between 2006 and 2010.FindingsFirst, the authors find that board size, board composition, the frequency of board meetings and the presence of an audit committee have an impact on the level of corporate disclosure. Second, results indicate that ownership structures have a non-linear effect on the level of corporate disclosure. Finally, the authors document that firm age, liquidity, listing status, industry type and auditor type are positively associated with the level of corporate disclosure.Research limitations/implicationsFuture research could investigate disclosure practices using other channels of corporate disclosure media, such as corporate websites. Useful insights may be offered also by future studies by conducting in-depth interviews with corporate managers, directors and owners regarding these issues.Practical implicationsThe evidence relating to the important role that corporate governance mechanisms play in shaping the expectations relating to the level of corporate voluntary and/or mandatory disclosures may be useful in informing investor decisions, as well as future policy and regulatory initiatives.Originality/valueThis paper contributes to the existing literature by examining the governance-disclosure nexus relating to both mandatory and voluntary disclosures in both listed and non-listed firms operating in a developing country setting.

The relationship between corporate governance and information disclosures: Evidence from the Philippines

This paper aims to investigate the impact of board characteristics and auditors on the disclosure practices of listed companies in the Philippines. This study used a self-constructed research instrument, namely the ASEAN Disclosure Index, to assess the extent of corporate disclosure of 21 the Philippines’ listed companies from 2011-2015, made out of 105 observations. The index covers 212 information items, with three attributes: financial information (76 items), non-financial information (68 items) and strategic information (68 items). An empirical result reports that the result reveals that an audit committee independence is positively significant at 95% level while board size and a number of board meetings held in the year are negatively significant at 95% level. For other variables covering board independence, a number director participation rates, gender diversity, CEO duality, a number of audit committee meetings, a number of audit committee participation rates and quality of external auditors, no significant relationship was found. This study contributes to the literature by offering a new instrument for assessing the extent of corporate disclosure in Southeast Asia region and also providing a novel viewpoint into the relationships between corporate governance mechanisms on information disclosure practices in a context of developing countries like the Philippines. Definitely, the contributed empirical evidence of this study might also help regulators for enhancing the level of corporate disclosure in the Philippines as well as neighboring countries in Southeast Asia region.

Firm Performance and Corporate Disclosure Level of Listed Companies in Nigeria

The study investigates the relationship between firm performance (proxied by profitability and liquidity) and corporate disclosure in Nigerian listed firms. The data used in the study were obtained from the annual reports of 60 companies listed on the Nigerian Stock Exchange from the various sectors of the country’s economy. The study covers the post International Financial Reporting Standards (IFRSs) adoption period of three years (2012 – 2014). Corporate disclosure (dependent variable) was disaggregated into mandatory, voluntary and total disclosure. The data were analysed using both descriptive statistics and the Ordinary Least Squares (OLS) regression. Findings from the descriptive statistics reveal that, contrary to prior findings, there is a steady improvement in mandatory disclosure by Nigerian companies since the country’s adoption of IFRSs. However, voluntary disclosure still remains relatively low. The regression results show no significant relationship between profitability and the three components of corporate disclosure. But liquidity shows a significant positive relationship with mandatory and total disclosure. The combined effect of profitability and liquidity shows no significant relationship with any of the components of corporate disclosure. The findings suggest that improved performance of companies does not necessarily induce them to disclosure more information as widely reported by previous researchers. These findings notwithstanding, the decision to disclose sufficiently and timely must be accorded priority attention by companies, considering the critical role of adequate and timely information disclosure in the global marketplace.

Corporate Attributes and Corporate Disclosure Level of Listed Companies in Nigeria: A Post-IFRS Adoption Study

This study examines the determinants of corporate disclosure level of listed companies in Nigeria. Specifically, the study investigates the relationship between two structure characteristics and corporate disclosure in Nigerian listed firms. The data used in the study were obtained from the annual reports of 60 companies listed on the Nigerian Stock Exchange from the various sectors of the Nigerian economy. The study covers the post International Financial Reporting Standards (IFRSs) adoption period of three years (2012 – 2014). The structure characteristics (independent variables) are firm size and leverage. Corporate disclosure (dependent variable) was disaggregated into mandatory, voluntary and total disclosure. The data were analysed using both descriptive statistics and the Ordinary Least Squares (OLS) regression. Findings from the descriptive statistics reveal that contrary to prior findings, there is a steady improvement in mandatory disclosure by Nigerian companies since the country’s adoption of IFRSs. However, voluntary disclosure still remains relatively low.Our empirical results show a significant positive association between firm size and mandatory disclosure. The results also reveal a significant negative relationship between leverage and mandatory disclosure. Both leverage and firm size showed a significant positive relationship with voluntary disclosure. The combined effect of leverage and firm size show a significant positive relationship with total disclosure. Based on these findings, we recommend that the Financial Reporting Council of Nigeria and other regulatory agencies should intensify efforts towards enforcement of companies’ compliance with the requirements of IFRSs and other relevant statutory provisions.

Determinants of Voluntary Disclosure: A Study in the Brazilian Banking Sector

Disclosure theory assumes the wide availability of information to users, increasing the level of corporate transparency and reducing information asymmetry common to the business environment. This research aims to investigate the factors influencing the level of voluntary disclosure by companies in the Brazilian banking sector. Corporate reputation (REP), firm size (TAM), performance (DES), and internationalization (ADR) were the variables used as factors influencing the level of disclosure. The sample was composed of the 100 largest Brazilian banks in relation to total assets in 2012. The methodology technique used multiple linear regression. The evidence revealed that the corporate reputation and the size of the companies had a significant and positive relationship with the level of voluntary disclosure. In this sense, the larger the company and higher the standard of corporate reputation, the higher the level of corporate disclosure. Performance and internationalization were not statistically significant.

THE INFLUENCE OF CORPORATE DISCLOSURE LEVEL ON COST OF EQUITY CAPITAL: EVIDENCE FROM INDONESIA

This research investigates the level of corporate disclosure in Indonesia and how corporate disclosure may influence company’s cost of equity capital. Moreover, this research is also wanted to investigate the profile of corporate disclosure in Indonesia.The samples used in this research are companies that are listed in LQ-45 from 2006 to 2010. The corporate disclosure information is derived from the annual report. Moreover, related information required are also extracted from annual report, such as leverage, total asset and auditor quality. For data analysis, this research will employ a multiple regression to determine the association among variables. The result shows the disclosure level in Indonesia is actually affected cost of equity capital even though the level of significant is considered as low. As the conclusion, although most of companies does not disclosed information as the expected number of regulation, Indonesia capital market still can be considered as semi strong since the information that are available for public are actually affecting investors decision on investment.

Hubungan Kausalitas antara Kinerja Sosial dan Ekonomi Perusahaan

The purpose of this study is to investigate the causality of relationship between the corporate economic performance and corporate social performance and also to get a picture about disclosure of Corporate Social Reporting (CSR) performance of companies in Indonesia that have deployed and published Standalone Sustainability Reports, and/or has disclosed Social and Environmental Responsibility or Sustainability in Annual Report, and the company website. The variables used to measure corporate economic performance are company size, profitability, leverage, and growth. The corporate social performance is measured by using an CSR disclosure index. The Causality relationship between corporate economic and social performance is based on the Slack Resource Theory and Good Management Theory. As the pilot study, a sample of 34 companies listed on JSX is taken using stratified random sampling method with 2010 data as the focus of the report analysis. The result of this study shows that there’s no significant relationship between Corporate Economic and Corporate Social Performance. The study also shows the low level of corporate disclosure of CSR.

Corporate governance attributes, firm characteristics and the level of corporate disclosure: Evidence from the Indian listed firms

Article history: Received July 25, 2012 Accepted October 10, 2012 Available online October 18 2012 This study investigates the association between firm characteristics, corporate governance attributes and the level of corporate disclosure of listed firms in India. The research paper has been based on a sample of 60 firms listed in the Bombay Stock Exchange (BSE) / National Stock Exchange (NSE) during the study period from 2000-01 to 2009-10. The study has used the Standard & Poor (2008) model for measuring the level of corporate disclosure. To examine the association between explanatory variables and the level of corporate disclosure, multiple regression model has been used. The results suggest a positive relationship between board size, ratio of audit committee members to total board members, family control, CEO duality, firm size, profitability, liquidity and the extent of corporate disclosure. However, the degree of corporate disclosure is negatively related to board composition, leverage and age of the firm. © 2013 Growing Science Ltd. All rights reserved.

Determinants of disclosures of A‐, B‐ and H‐share companies

PurposeThis study attempts to examine the issues relating to corporate financial reporting of Chinese listed companies under specified institutional settings as companies with different share‐categories are required to prepare annual reports under various General Accepted Accounting Principles (GAAP).Design/methodology/approachThis study selects Chinese companies that issue negotiable shares to examine whether corporate disclosure patterns are different under various institutional settings. Negotiable shares can be traded on stock exchanges and are divided into A‐, B‐ and H‐shares. The extent of corporate disclosure is obtained from the content analysis of annual reports for 191 sampled Chinese listed companies with various share categories. The association are hypothesized and tested between the level of corporate disclosure and the following corporate determinants: company size, profitability, auditor, leverage, industry and ownership structure.FindingsThe extensive regulations and different standards influence on disclosures of companies with foreign investment participation and overseas listing status. By reconciliation of their annual reports according to the IFRSs or the GAAP of the listing country, these companies increased information disclosure voluntarily in order to enhance their reputation and credibility. Some corporate factors, such as company size, profitability and the size of auditor, have influenced the level of corporate disclosure in annual reports of domestic and foreign share‐based companies. Ownership structure has positive impact on the level of disclosure for companies with domestic investors.Originality/valueThis study advances knowledge of the influence that legislative circumstances and ownership structures can have on disclosure decisions made by management in their annual reports. This information is of high interest to domestic and foreign investors and regulators in understanding of financial reporting in Chinese listed companies.

The effect of corporate disclosure level on cost of equity capital

In today s changing business environment, the on going debate is between proponents and opponents of greater disclosure. The Asian financial crisis in 1997 further led to a wider recognition of the importance of quality corporate disclosure. However the benefits of greater disclosure are not well established and have proven difficult to quantify. This study attempts to examine the association between corporate disclosure score and cost of equity capital. While majority ofprior research in this discipline concentrated on the US and UK securities, this paper provides Malaysian evidence on this issue. Contrary to other research findings the results indicate that there is no significant relationship between the disclosure score and cost of equity which could be due to the loss of timeliness of information. As for the disclosure score, all companies showed an improvement over the years indicating the awareness for disclosure. NACRA companies showed good improvement on disclosure score as compared to the Industrial Products companies.

TINGKAT KELUASAN PENGUNGKAPAN SUKARELA DALAM LAPORAN TAHUNAN DAN HUBUNGANNYA DENGAN CURRENT EARNINGS RESPONSE COEFFICIENT (ERC)

This study examines whether voluntary corporate disclosure level that is published in annual report affects the return-earnings relationship. The study hypothesizes that the informativeness of earnings and voluntary disclosure is complementary to each other. This hypothesis implicitly presumes that investor will use the information provided in annual report disclosures together with information in earnings as one of the guidance in investment decisions. To test the hypothesis, current stock returns are regressed against current earnings changes. The sample consists of 90 annual reports of companies listed on the JSX as of December 31, 1998. The amount of voluntary disclosure provided in annual reports is measured by disclosure items and weighted scores developed by Botosan (1997), Sitanggang (2002), and Suripto (1999). Before deciding to use the weighted score, this study examines the differences between weighted scores and the equally weighted ones. The findings of the test of differences support the hypothesis that the two kinds of score measurement are statistically different, meaning that investors place different interests to each disclosure items. The findings of regression test support the hypothesis of complementary relationship, which remain consistent after controlling for other factors that have been identified in previous studies influence the earnings response coefficients. The findings are also robust with respect to different holding period returns and different earnings measurement.

Influencing Limits to Arbitrage: Corporate Disclosure in Inefficient Markets

Much of the work in behavioral corporate finance has been dedicated to analyzing how firms respond to limits to arbitrage in setting corporate policy. In this paper, we provide a theory of corporate disclosure that seeks to emphasize the existence of an alternate direction of causality: that when operating amongst noise traders, firms may set corporate policy with a mind to influence the limits to arbitrage. By controlling the amount of information arbitrageurs have on firm value, managers can affect the severity of the limits to arbitrage. As the information possessed by arbitrageurs decreases, they will be less willing to take large positions against noise trader demand, and hence, firm prices will less closely track their fundamental value. We show that this effect can lead to an equilibrium level of disclosure that is not fully revealing, and that is decreasing in the level of noise trader sentiment. In this equilibrium, in periods of high sentiment, managers will attempt to increase the effect of noise traders on stock price by decreasing the level of corporate disclosure, which will, in turn, serve to exacerbate market mispricing. In addition, we examine the benefits of disclosure regulation and show that there are important interactions between mandatory disclosure requirements and discretionary disclosure choices, which serve to greatly increase the benefit of disclosure regulation in an inefficient market.