Determinant of Financial Instruments Disclosure Quality Among Listed Firms in Malaysia

2008 ◽  
Author(s):  
Mohamat Sabri Hassan ◽  
Norman Mohd-Saleh ◽  
Mara Ridhuan Che Abdul Rahman
Keyword(s):  
Financial Instruments ◽  
Disclosure Quality ◽  
Listed Firms

scholarly journals Corporate Governance, Disclosure Quality, and Cost of Equity: Evidence from Pakistan

2018 ◽  
Vol 6 (2) ◽  
pp. 63-91 ◽  
Author(s):  
Safia Nosheen ◽  
Naveed-Ul-Haq Naveed-Ul-Haq ◽  
Muhammad Faisal Sajjad
Keyword(s):  
Corporate Governance ◽  
Audit Quality ◽  
Financial Statements ◽  
Ordinary Least Squares ◽  
Cost Of Equity ◽  
Disclosure Quality ◽  
Listed Firms ◽  
The Cost ◽  
Governance Disclosure

The link between disclosure of corporate information and the cost of equity in firms is one of the most important issues in finance. This paper aims to examine the connection between corporate governance, disclosure quality of information, and the cost of equity in Pakistani-listed (PSX-listed) firms. Using the Generalized Methods of Movements (Sys-GMM) model, a sample of 167 non-financial firms listed on Pakistan Stock Exchange (PSX) for the period of 2011-2015was analyzed. Sys-GMM estimation was applied to overcome the problem of endogeneity among corporate governance variables. To test the robustness of GMM estimations, we compared the results of pooled ordinary least squares (OLS) and fixed-effect estimations and found they did not overcome the problem of endogeneity, providing spurious results. We found a negative association between cost of equity and disclosure quality of financial statements. The findings suggested that the board size, concentrated ownership and CEO duality, are found as significant factors in reducing the cost of equity of PSX-listed firms. Audit committee independence and audit quality of the firm showed a positive relationship with the firm’s cost of equity. Our findings suggest that employing a high-quality auditor and independent director’s results in increased cost of equity for PSX-listed firms. Furthermore, no significant relationship between independence of the boards and duration of the authorizations of financial statements by the board of directors is found. The results also revealed the investors demand more return on their investments if inadequate and incomplete information is disclosed in the annual reports of the firms. This study provides useful insights for Pakistani corporate governance regulators, the executive management of Pakistani firms, and their investors.

Disclosure Quality of Goodwill Impairment Testing: A Disclosure Index

2012 ◽  
pp. 5-30 ◽  
Author(s):  
Khairil Faizal Khairi ◽  
Nur Hidayah Laili ◽  
Dung Manh Tran
Keyword(s):  
Annual Reports ◽  
Mandatory Disclosure ◽  
Disclosure Quality ◽  
Quality Of Information ◽  
Listed Firms ◽  
Goodwill Impairment ◽  
Weighted Index ◽  
Disclosure Requirements ◽  
Compliance Level

This study sets out to offer proof of several important questions relating to the quality of information disclosed on goodwill impairment process under the new requirements of FRS 36. This study investigates the compliance level and disclosure quality of FRS 36 by top 20 of Singaporean listed firms in SGX at 2007 based on their market capitalization. In order to achieve the objective of this study, the weight- ed index is chosen because this index is able to differentiate the quality and impor- tance of each mandatory disclosure under FRS 36. The weighted index was developed by constructing a disclosure scoring sheet, obtaining annual reports of 20 sampled Singapore firms for particular year, complet- ing scoring sheet for each firms by assigned weighted for the disclosure items and calculating disclosure weighted index. The weighted index was analyzed to examine the firm’s compliance with the FRS 36 disclosure requirements. The results of this study revealed that 18 out of 20 (90%) firms in Singapore failed to comply with the most basic elements of the FRS 36 pertaining to goodwill impairment testing espe- cially in allocating goodwill into the CGUs and key assumptions used in determin- ing the recoverable amount of CGU assets.

scholarly journals Corporate Governance Score and the Quality of Financial Disclosures: Evidence from the French Context

2016 ◽  
Vol 6 (2) ◽  
pp. 217
Author(s):  
Mondher Kouki ◽  
Bilel Ben Attia
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Research Paper ◽  
Financial Disclosure ◽  
Disclosure Quality ◽  
Listed Firms ◽  
Financial Disclosures

This research paper examines how corporate governance is related to the quality of financial disclosures for a sample of French listed firms during the period 2003-2009. We find that the level of financial reporting is positively influenced by corporate governance score. Managers and blockholders are more likely to disclose less information. These results are consistent with the belief that effective corporate governance is associated with higher financial disclosure quality while entrenched insiders do not improve this effect.    

scholarly journals Corporate governance disclosure quality: exploratory evidence from the UK

2014 ◽  
Vol 11 (2) ◽  
pp. 120-135
Author(s):  
Mark Mulgrew ◽  
Mulgrew Reynolds
Keyword(s):  
Corporate Governance ◽  
Investment Decision ◽  
Fundamental Aspect ◽  
Disclosure Quality ◽  
Listed Firms ◽  
Investment Decision Making ◽  
Governance Practices ◽  
Corporate Governance Practice ◽  
The Uk ◽  
Governance Disclosure

A fundamental aspect of good corporate governance is the protection of shareholders and their investments. These stakeholders are now demanding increasing levels of transparency in all aspects of business with a greater emphasis being placed on non-financial information for investment decision making. While the majority prior research has examined the corporate governance practices of the firm, research investigating the actual disclosure of corporate governance practice is scarce. This study contributes to this debate by providing exploratory evidence on the levels of corporate governance disclosure quality and compliance in a sample of 40 UK listed firms throughout the period 2002 to 2009. Findings report a notable increase in disclosure quality and compliance over this period with the greatest increase occurring from 2002 to 2004/05 and suggest that firms are responding to calls from investors.

scholarly journals Corporate Governance and Disclosure Quality: Taxonomy of Tunisian Listed Firms Using the Decision Tree Method based Approach

2013 ◽  
Vol 3 (2) ◽  
pp. 46-68 ◽  
Author(s):  
Wided Khiari
Keyword(s):  
Corporate Governance ◽  
Decision Tree ◽  
Disclosure Quality ◽  
Governance System ◽  
Listed Firms ◽  
Governance Practices ◽  
Governance Strategy ◽  
Decision Tree Method ◽  
Tree Method

This study aims to establish a typology of Tunisian listed firms according to their corporate governance characteristics and disclosure quality. The paper uses disclosed scores to examine corporate governance practices of Tunisian listed firms. A content analysis of 46 Tunisian listed firms from 2001 to 2010 has been carried out and a disclosure index developed to determine the level of disclosure of the companies. The disclosure quality is appreciated through the quantity and also through the nature (type) of information disclosed. Applying the decision tree method, the obtained Tree diagrams provide ways to know the characteristics of a particular firm regardless of its level of disclosure. Obtained results show that the characteristics of corporate governance to achieve good quality of disclosure are not unique for all firms. These structures are not necessarily all of the recommendations of best practices, but converge towards the best combination. Indeed, in practice, there are companies which have a good quality of disclosure but are not well governed. However, we hope that by improving their governance system their level of disclosure may be better. These findings show, in a general way, a convergence towards the standards of corporate governance with a few exceptions related to the specificity of Tunisian listed firms and show the need for the adoption of a code for each context. These findings shed the light on corporate governance features that enhance incentives for good disclosure. It allows identifying, for each firm and in any date, corporate governance determinants of disclosure quality. More specifically, and all being equal, obtained tree makes a rule of decision for the company to know the level of disclosure based on certain characteristics of the governance strategy adopted by the latter.

scholarly journals Disclosure Quality and Dividend Payout in Saudi Firms

2018 ◽  
Vol 12 (1) ◽  
pp. 16
Author(s):  
Rashidah Abdul Rahman ◽  
Eman Saleh Fadel ◽  
NajlaAbdul Rahman ◽  
Amal Awad
Keyword(s):  
Cash Flow ◽  
Saudi Arabian ◽  
Free Cash Flow ◽  
Disclosure Quality ◽  
Dividend Payout ◽  
Listed Firms ◽  
Flow Problems ◽  
Quality Disclosure ◽  
Excess Cash

This study examines how disclosure quality influences the dividend payouts of firms, and provides further evidence concerning the outcome hypothesis and substitution hypothesis. Using a sample of non-financial Saudi Arabian listed firms during 2012-2014, our results provide support for the substitution hypothesis in which outsiders demand higher dividends in a low-quality disclosure environment as a “substitute” for opacity. Further analysis shows that managers pay a higher dividend in an opaque environment not only to establish a reputation among outside capital suppliers but also because they have to disgorge excess cash to circumvent free cash flow problems.

scholarly journals Constructing a Financial Reporting Disclosure Quality Model of Listed Firms in Malaysia

2021 ◽  
Vol 22 (2) ◽  
pp. 1034-1046
Author(s):  
Daw Tin Hla ◽  
Sharon Cheuk ◽  
Abu Hassan Md Isa ◽  
Shaharudin Jakpar
Keyword(s):  
Financial Reporting ◽  
Service Sector ◽  
Audit Quality ◽  
Essential Feature ◽  
Accounting Standards ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Disclosure Quality ◽  
Listed Firms ◽  
Financial Reporting Standards

The national accounting standards set by the Malaysian Accounting Standards Board (MASB) is largely converged with the International Financial Reporting Standards (IFRS). The benefit arising from this is to enable foreign investors to analyse their investments via a standardised financial reporting system in Malaysia. Financial reporting disclosure quality by the listed firms in the consumer product and service sector on Bursa Malaysia is an essential feature in the firms’ financial reporting to the public. This research evaluates the development of financial reporting disclosure quality assurance by firms listed on Bursa Malaysia, by examining financial reporting disclosure quality and subsequent compliance with the International Financial Reporting Standards. This study uses a content analysis approach to identify a financial reporting standard compliance disclosure index, based the financial statements issued by firms listed on Bursa Malaysia from 2008 – 2016. A panel regression model is utilised to construct a model of financial reporting disclosure quality of the firm, based the extent of compliance with IFRS disclosure requirements from the following perspectives: corporate governance practice, audit quality and corporate social responsibility. The sustainability of financial reporting disclosure quality by the listed firms and subsequently the Malaysian capital markets will enable the same to attain a competitive edge in the international markets. In addition, this study will discuss financial reporting disclosure quality implications relevant to the policy makers in Bursa Malaysia, and it is envisaged that such model can be utilised in the improvement of future financial reporting policies.

scholarly journals Corporate governance and information transparency in Taiwan’s public firms: The moderating effect of family ownership

2016 ◽  
Vol 22 (5) ◽  
pp. 662-679 ◽  
Author(s):  
Yunshi Liu ◽  
Alix Valenti ◽  
Yi-Jung Chen
Keyword(s):  
Information Disclosure ◽  
Family Ownership ◽  
Board Independence ◽  
Disclosure Quality ◽  
Socioemotional Wealth ◽  
Information Transparency ◽  
Public Firms ◽  
Listed Firms ◽  
Governance Practices ◽  
The Relationship

AbstractThis study incorporates insights from both institutional and family socioemotional wealth perspectives with agency theory to examine the relationships among governance practices, family ownership, and information disclosure quality. Employing a sample of 516 publicly listed firms in Taiwan over a period of 5 years (2006–2010), we found that high levels of board independence and board activity have a significant positive effect on disclosure quality. Further, family ownership positively moderated the relationship between board independence and disclosure quality. This relationship is stronger with a higher level of family ownership. The results support the institutional proposition that family-owned firms that pursue socioemotional wealth are more likely to promote information transparency to gain legitimacy and enhance their reputations with outside stakeholders.

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