Forward-Looking Information Disclosure and Corporate Governance: Empirical Evidence from Year 2013 Listed Firms in Ghana

2018 ◽  
Vol 17 (4) ◽  
pp. 311-339 ◽  
Author(s):  
Ben K. Agyei-Mensah
Keyword(s):  
Corporate Governance ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Annual Reports ◽  
Significant Variable ◽  
Financial Reports ◽  
Listed Firms ◽  
Future Performance ◽  
Ghana Stock Exchange ◽  
Forward Looking

Abstract This study investigated the influence of corporate governance on the disclosure of forward looking information by firms listed on the Ghana Stock Exchange. The forward-looking information used in this study were obtained from statements made for management in either the Managing Director or Board Chairman’s reports regarding future operating outcomes. The results of the extent of disclosure of forward looking information, mean of 35%, indicate that most of the firms listed on the Ghana Stock Exchange did not disclose sufficient forward looking information in their annual reports. The low level (35%) of forward looking information disclosure will also make it very difficult for the firms’ stakeholders to determine future performance of the company. In a country where corruption, even within the judiciary, is high one way of hiding corrupt practices is to hide information from the users of the financial reports. The results of the regression analysis indicate that board ownership concentration is the significant variable that explain the level of forward looking information disclosure.

scholarly journals The impact of structure-related variables on forward-looking disclosure in the annual reports of non-financial Egyptian companies

2013 ◽  
Vol 11 (1) ◽  
pp. 111-125
Author(s):  
Bassam Baroma
Keyword(s):  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Annual Reports ◽  
Listed Firms ◽  
The Impact ◽  
Egyptian Stock Exchange ◽  
Forward Looking

The main objective of this study is to test the relationship between numbers of variables representing firm characteristics (structure-related variables) and the extent of voluntary disclosure levels (forward-looking disclosure) in the annual reports of Egyptian firms listed on the Egyptian Stock Exchange. This study uses empirically investigate hypothesized impacts of structure-related variables on the extent of forward-looking disclosure. This study uses a list of forward-looking keywords to determine the differences in the level of forward looking disclosure between firms in different sectors. The sample includes 49 non-financial firms listed on the Egyptian Stock Exchange for the years 2008, 2009 and 2010. Statistical analysis is implemented using a multiple linear regression analysis. The results show that firm size is significantly positive (in all the three years) with the level of forward-looking disclosure. Firm age also is, only for the year 2008, and with insignificant association with the level of forward-looking disclosure in years 2009 and 2010. On the other hand, leverage and ownership dispersion variables are found being insignificantly associated with the level of forward-looking information disclosed in the annual reports for all the three years. There are some limitations in this study. First, the study uses the same list of forward-looking items as applied in previous studies. Second, the selected items do not show observed importance levels by financial information users. Third, the study applies an “unweights” approach to measure the level of forward-looking disclosure. Finally, the study concentrates on non-financial listed firms on the Egyptian Stock Exchange and excluded financial and insurance firms. Few studies have examined the forward-looking information disclosure in developing countries, particularly in the Middle East; no study has yet tested disclosure of forward-looking information in the annual reports for Egyptian firms. Furthermore, all previous studies examined the forward-looking disclosure in the annual reports for a sole year: this study examines it for a somewhat longer period (three years).

scholarly journals Do corporate governance practices affect the performance of firms listed on the Ghana Stock Exchange?

2019 ◽  
Vol 17 (1) ◽  
pp. 107-115 ◽  
Author(s):  
Paul Adjei Onyina ◽  
Daniel Kojo Gyanor
Keyword(s):  
Corporate Governance ◽  
Business Performance ◽  
Stock Exchange ◽  
Annual Reports ◽  
Listed Firms ◽  
Weak Evidence ◽  
Governance Practices ◽  
Size Growth ◽  
And Performance ◽  
Ghana Stock Exchange

This paper investigates whether the performance of a firm matters if it has strong corporate governance practices and listed on the Ghana Stock Exchange. It uses annual financial statements between 2007 and 2016 from firms that have been certified by the Security and Exchange Commission and listed firms on the Ghana Stock Exchange. By means of the random effects model, the study does not provide statistically compelling evidence that listed corporate governance variables affect the performance of firms listed on the Ghana Stock Exchange. However, the study found weak evidence in favour of board size, leverage, firm size, growth, and asset tangibility. We find that many of the corporate governance variables used in the model have no significant impact on the performance of the firms. The relevance of the study is that it shows the relationship between policies on corporate governance and performance of firms, and governing bodies of firms informed about the type of corporate governance practices that will support business performance. Hence we recommend that policymakers take this up to embark on rigorous modification of practices on corporate governance involving listed companies in Ghana to ascertain first-hand how these firms are practising what has been documented in their annual reports

scholarly journals Gender diversity on boards and forward-looking information disclosure: evidence from Jordan

2018 ◽  
Vol 8 (2) ◽  
pp. 205-222 ◽  
Author(s):  
Zakaria Ali Aribi ◽  
Rateb Mohammad Alqatamin ◽  
Thankom Arun
Keyword(s):  
Information Disclosure ◽  
Family Firms ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Financial Information ◽  
Female Representation ◽  
Financial Reports ◽  
Content Type ◽  
Final Sample ◽  
Forward Looking

Purpose The purpose of this paper is to provide empirical evidence of the relationship between female representation on the board and forward-looking information disclosures (FLIDs). Design/methodology/approach The study uses the content analysis to analyze the narrative evidence from the annual financial reports of non-financial Jordanian companies listed on the Amman Stock Exchange. The final sample consists of 1,206 firm-year observations during the period 2008-2013. Findings The study provides evidence that gender diversity on boards positively affects the level of FLIDs. Further to this, the study reveals that family firms disclose more information than non-family firms. Practical implications Results of this study could be beneficial for a number of users of financial information such as, regulators, investors, auditors and lenders. The users might consider the findings of this study when they are using the company’s financial information. Consequently, users of this information could be better assisted to make right decisions. Originality/value This study contributes to the literature by identifying the role of gender on the level of FLID, particularly on family and non-family, a relatively little researched area.

scholarly journals OPAQUE FINANCIAL REPORTS AND STOCK PRICE CRASH RISK IN INDONESIA

2014 ◽  
Vol 13 (1) ◽  
Author(s):  
Lukas Purwoto ◽  
Eduardus Tandelilin
Keyword(s):  
Corporate Governance ◽  
Information Disclosure ◽  
Stock Price ◽  
Negative Information ◽  
Bad News ◽  
Crash Risk ◽  
Binary Outcome ◽  
Financial Reports ◽  
Listed Firms ◽  
Lack Of Information

Stock price crash risk is explained in perspective of corporate governance which refers to the lack of information disclosure. This research investigates the effects of opaque financial reports on stock price crash risk of Indonesia-listed firms from 2005 to 2008.The results show that the degree of crash risk is high. Analyses of binary outcome models, which are controlled by company characteristics, show that crash risk is higher in firms with more opaque financial reports. These results of analysis validate the findings of Hutton et al. (2009) so consistent that insiders or managers hide bad news or negative information when submitting poor financial reports.

scholarly journals Company Size, Profitability, Tax, and Good Corporate Governance On The Company’s Decision To Transfer Pricing (Empirical Study on Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2015-2018 Period)

2020 ◽  
Vol 5 (2) ◽  
pp. 141-150
Author(s):  
Atwal Arifin ◽  
Africo Al-Dua Saputra ◽  
Heppy Purbasari
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Secondary Data ◽  
Annual Reports ◽  
Company Size ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Good Corporate Governance

The research is aimed to analyze the effect of company size, profitability, tax, and good corporate governance on the company’s decision to transfer pricing. The dependent variable in this study is transfer pricing which is proxied by the value of the related party transaction sale. The independent variables in this study are company size, profitability, tax, and KAP quality. This research used secondary data on financial reports or annual reports on manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2018 period. Determination of the sample employed purposive sampling method. The sample in this study were 22 companies with 88 data. The results in this study found that (1) company size had a positive effect on transfer pricing, (2) profitability had no effect on transfer pricing, (3) tax had no effect on transfer pricing, and (4) KAP quality had no effect on transfer pricing.

scholarly journals Pengaruh Good Corporate Governance (GCG), Profitabilitas, dan Leverage Terhadap Nilai Perusahaan

2020 ◽  
Vol 1 (2) ◽  
pp. 113-123
Author(s):  
Indriana Damaianti
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Secondary Data ◽  
Sampling Technique ◽  
Total Sample ◽  
Annual Reports ◽  
Financial Reports ◽  
Mining Companies ◽  
Good Corporate Governance

Abstract: The purpose of purpose of this study is to determine the influence of Good Corporate Governance (GCG), profitability, and leverage on firm value in mining companies. This study used secondary data from financial reports, annual reports, and other related information of mining companies listed on Indonesia Stock Exchage (IDX) in the 2014-2018 period. The research method used is the explanatory method. The population in this study were mining companies listed on the Indonesia Stock Exchange (IDX) in the 2014-2018 period, which were 41 companies with total sample 30 companies that matches the criteria. The sampling technique used is a purposive sampling. Data analysis technique used is multiple linear regression. The result showed that only Good Corporate Governance (GCG) variable measured by board of director has a positive and significant effect on the firm value, meanwhile profitability variable measured by Return On Asset (ROA), leverage variable measured by Debt to Equity Ratio (DER), and Good Corporate Governance (GCG) variable measured by board of commissioner independent not significantly impact on the firm value in mining companies.

scholarly journals PENGARUH CORPORATE GOVERNANCE DAN POLITICAL CONNECTION TERHADAP TAX AVOIDANCE DAN DAMPAKNYA PADA NILAI PERUSAHAAN

SIMAK ◽  
2020 ◽  
Vol 18 (01) ◽  
pp. 21-46
Author(s):  
Suwandi Ng ◽  
Felicia Katrin Phie
Keyword(s):  
Corporate Governance ◽  
Significant Influence ◽  
Firm Value ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Tax Avoidance ◽  
Annual Reports ◽  
Political Connection ◽  
Financial Reports ◽  
Governance Practices

This study aims to investigate the influence of corporate governance and political connection to tax avidance, and its impact on value of firm. The population used is all companies listed on the Indonesia Stock Exchange (IDX) with the study period 2015-2017. The sample size is 102 companies per year, selected by purposive sampling method. This study uses documentary data, namely annual reports and financial reports. Path analysis was used to analyze data and hypothesis test of mediation was done by sobel test. The results of this study indicate that corporate governance has a negative and significant influence on tax avoidance, while the political connection has a positive and significant effect on tax avoidance. Tax avoidance has a negative and significant influence on firm value. In addition, tax avoidance can mediate the influence of political connection on firm value. The implications of this research are companies with high levels of corporate governance practices that have better controls, thus reducing tax avoidance. While the relationship of political connection encourage companies to act more aggressively in tax avoidance action. Tax avoidance conducted by the company shows the practice of tax avoidanceso as to lower the level of investor confidence in investing its capital that impact on the decline in corporate value.

scholarly journals The Determinants Of Corporate Social Responsibility Disclosure: Evidence From China

2013 ◽  
Vol 29 (6) ◽  
pp. 1833 ◽  
Author(s):  
Jianling Wang ◽  
Lin Song ◽  
Shujie Yao
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Annual Reports ◽  
Listed Firms ◽  
Corporate Social Responsibility Disclosure ◽  
Low Profile ◽  
Environmentally Sensitive ◽  
Corporate Social

<p>Employing the content analysis approach, this paper aims to identify the determinants of corporate social responsibility disclosure (CSRD) in China using the annual reports of over 800 A-share listed firms on the Shanghai Stock Exchange. We find that CSRD is positively associated with firm size, media exposure, share ownership concentration and institutional shareholding. Moreover, firms in High-Profile environmentally sensitive industries tend to disclose more corporate social responsibility (CSR) information than those in Low-Profile environmentally sensitive industries, supporting the view that political cost is the primary constraint for Chinese listed firms. Our results provide important insights for academics interested in the CSR issue in emerging economies, for enterprise managers interested in exploiting the annual reports as a strategy to legitimize their corporate social conduct, and for government regulators committed to improving CSR activities and information disclosure.</p>

Impact of Adopting IFRS in Ghana

2016 ◽  
pp. 191-230
Author(s):  
Ben K. Agyei-Mensah
Keyword(s):  
Internal Control ◽  
Financial Information ◽  
Annual Reports ◽  
Disclosure Quality ◽  
Accounting Disclosure ◽  
Financial Reports ◽  
Listed Firms ◽  
Control Information ◽  
Forward Looking

This chapter reports on the impact of the adoption of IFRS in Ghana. It first traced the history of accounting standards in Ghana and the reason for the adoption of IFRS in 2007. One of the key issues that IFRS talk about is the disclosure of financial and non financial information in corporate financial reports. Hence this chapter provides evidence on the extent of disclosures, the quality of the disclosures and the determinants of the disclosures. The disclosure of financial ratios, forward-looking information and internal control information in corporate annual reports were extensively studied and findings reported in this chapter. The results of the quality of financial information disclosure mean of 76.80% (pre adoption) and 87.09% (post adoption) for the two years indicate that the quality of financial reports has improved significantly after adopting IFRSs. The findings thus confirms that the implementation of IFRSs generally reinforce accounting disclosure quality. However, the low levels of other disclosures (accounting ratio disclosure quality 6.64%, level of disclosure 60%; forward looking information 35%; internal control information 42%) by listed firms in Ghana do not support signaling theory which suggests that firms with good performance will wish to signal their quality to investors, hence are more likely to disclose their performance by disclosing more voluntary information. It is therefore important for the SEC and The Ghana Stock Exchange to do more by enforcing adherence to the corporate code of corporate governance.

Corporate governance in Ghana

2019 ◽  
Vol 27 (2) ◽  
pp. 126-140 ◽  
Author(s):  
Larry Amartei Amartey ◽  
Mei Yu ◽  
Osita Chukwu-lobelu
Keyword(s):  
Corporate Governance ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Audit Committees ◽  
Annual Reports ◽  
Content Type ◽  
External Auditors ◽  
Governance Systems ◽  
Code Of Corporate Governance ◽  
Ghana Stock Exchange

Purpose This study aims to examine the mechanisms that were being used to enhance board accountability of Ghanaian listed banks, and how board accountability can be improved. Design/methodology/approach The 2011 and 2016 annual reports of listed banks on the Ghana Stock Exchange were examined, and a survey questionnaire was sent to board members of nine banks. Findings The results show that the directors of Ghanaian listed banks prioritise a shareholder approach to accountability, with a shift towards stakeholders. Audit committees, external audits and internal audits were the main mechanisms used by these banks to enhance board accountability. Some of these mechanisms were not used effectively by a number of these banks. Practical implications Board accountability can be improved by appointing very competent people to the board, the national adoption of a mandatory code of corporate governance, regular rotation of external auditors and requiring non-executive directors to stand for re-election more frequently. Our research identifies weaknesses of accountability mechanisms and offers timely recommendations for banks and regulators to build stronger corporate governance systems. Originality/value This study obtained valuable opinions of the boards of directors, provides insights on boards of Ghanaian listed banks and contributes to the literature of corporate governance and accountability in Africa.

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