Board Structure and Voluntary Disclosure

2021 ◽  
pp. 280-304
Author(s):  
Issal Haj-Salem
Keyword(s):  
Voluntary Disclosure ◽  
Boards Of Directors ◽  
Stock Exchange ◽  
Annual Reports ◽  
Board Structure ◽  
Financial Firms ◽  
Board Directors ◽  
Important Extension ◽  
Institutional Shareholders ◽  
The Impact

This chapter investigates the impact of board structure on the voluntary disclosure level in a Tunisian context. It aims to analyse the relationship between the different boards of directors characteristics of 51 companies listed on the Tunisian Stock Exchange for the year 2010. The empirical results affirm that the board independence and the presence of institutional shareholders in the board have a positive and significant influence on the voluntary disclosure in the Tunisian annual reports. However, the other characteristics presented in the chapter do not have significant impact on voluntary disclosure. This study could be considered as an important extension of prior research investigating the impact of governance mechanisms on voluntary disclosure, particularly those related to the impact of the board directors. It should be noted that, contrary to prior research, this chapter considers both financial and non-financial firms. Also, few studies examined the ownership structure within the board. The findings have potential implications for countries' regulators.

scholarly journals Ownership Structure, Board Composition and Voluntary Disclosure by Non-financial Firms Listed in )ASE)

2020 ◽  
Vol 13 (7) ◽  
pp. 93
Author(s):  
Dana Adel Alqatameen ◽  
Mahmoud Abd Alhaleem Alkhalaileh ◽  
Mohammad Nadeem Dabaghia
Keyword(s):  
Financial Reporting ◽  
Ownership Structure ◽  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Annual Reports ◽  
Board Composition ◽  
Financial Firms ◽  
The Board Of Directors ◽  
Financial Disclosures ◽  
The Impact

This study aims to examine the impact of ownership structure and board composition on the level of voluntary disclosure by non-financial firms listed in the Amman Stock Exchange (ASE). The study uses panel hand-collected data from 443 annual reports for a 5-year period (2012 – 2016) and employs an OLS-regression to test the study predictions. Compatible with the study predictions and most prior related studies’ findings, both higher managerial ownership and the CEO-duality produce low levels of voluntary disclosure, while foreign ownership is positively associated with the level of voluntary disclosure. Findings also indicate that larger firms deemed to provide higher levels of voluntary disclosures than smaller firms. Besides, companies audited by big4 firms disclose more voluntary information than those audited by others. The study findings have implications for policymakers and regulators. Policymakers and regulators may encourage, emphasize and enforce, if necessary, the regulation that enhances the quality of financial disclosures including the separation between the Chairman of the board of directors and CEO roles to improve the level of control and supervision and enhance the transparency of financial reporting by Jordanian firms.

scholarly journals The Impact of Corporate Governance on Dividend Decisions: Evidence from Non-Financial Sector of Pakistan

2021 ◽  
Vol 10 (1) ◽  
pp. 285-295
Author(s):  
IHTESHAM KHAN ◽  
MUHAMMAD SHAHID ◽  
SHAH RAZA KHAN
Keyword(s):  
Corporate Governance ◽  
Financial Institution ◽  
Stock Exchange ◽  
Annual Reports ◽  
Board Independence ◽  
Board Size ◽  
Financial Firms ◽  
Size Firm ◽  
The Impact ◽  
Individual Ownership

This study sought to ascertain the impact of corporate governance on dividend decisions of non-financial firms listed on Pakistan stock exchange (PSX). Panel data was collected from 2011to 2016. Data was collected from Non financial firms annual reports and State Bank of Pakistan (SBP) data base. The STATA software was used to analyze the data. The study investigates the association of firm’s performance and corporate governance. Specifically, this study investigate dividend decision (dividend per share(DPS)), corporate governance (board independence ,board size, size of firm, leverage, profitability, Insider ownership, individual ownership, and institutional ownership). A total of 42 non-financial firms are used to determine this relationship. The results show a positive significant relation between the Profitability, individual ownership with DPS. This study also found a negative and significant relationship between insiders ownership, financial institution ownership with DPS. It has also been found that Board independence, board size, firm size and leverage have negative and insignificant relationship with dividend per share (DPS). Keywords: Corporate Governance, Dividend Decisions, Dividend Policy.

scholarly journals CORPORATE GOVERNANCE AND FIRM PERFORMANCE NEXUS: A CASE OF CEMENT INDUSTRY OF PAKISTAN

2018 ◽  
Vol 1 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Abdul Ghafoor Kazi ◽  
Muhammad Asad Arain ◽  
Payal Devi Sahetiya
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Ownership Structure ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Study Data ◽  
Cement Industry ◽  
Annual Reports ◽  
Board Structure ◽  
The Impact

Corporate governance is the system of rules, practices and method by that business corporations are directed and controlled. The aim of this research is to examine the impact of the corporate governance on the financial performance of the enlisted cement industry on the Pakistan Stock Exchange from the year 2013-17. This research is a “quantitative research” which focuses on numbers and results based on empirical analysis of actual data and logic. Ten out of seventeen cement firms listed at PSX from the period 2013-17 are selected as sample of the study. Data was collected from documents and records. Descriptive statistics, Pearson’s correlation and multiple regressions were used for data analysis. The results showed that there is no significant relationship between leverage and firm performance, the board structure has no significant relationship with firm performance, and firm size has an insignificant relationship with firm performance. The results however suggested that ownership structure has significant relationship with firm performance. The future investors in cement industry of Pakistan must consider above factors before investments. This study helps shareholders and management in decision making about the effect of ownership structure on firm performance and how these can change ownership structure. This study helps students to gain knowledge and understanding about good corporate governance and its impact on firm performance. It will also help them to go through the annual reports of companies and to analyse the financial statements so that they could learn how to analyse the performance of the firm in terms of ROE. Moreover, the study would also be a direction for future researchers and students to further add value to the subject of corporate governance and firm performance.

scholarly journals Institutional Investors Ownership and Financial Performance: Examining the Nexus in Nigerian Deposit Money Banks

2020 ◽  
Vol 11 (6) ◽  
pp. 177
Author(s):  
Damilola Felix Eluyela ◽  
Wisdom Okere ◽  
Adegbola Olubukola Otekunrin ◽  
John Nonso Okoye ◽  
Asamu Festus ◽  
...  
Keyword(s):  
Panel Data ◽  
Financial Performance ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Time Frame ◽  
Annual Reports ◽  
Growth And Survival ◽  
Performance Examining ◽  
Institutional Shareholders ◽  
The Impact

The main aim of this paper is to examine the impact of institutional investor’s ownership on the financial performance of deposit money banks listed on Nigerian stock exchange (NSE). The time frame for this study is 2011-2018. Data was generated from annual reports of 15 deposit money banks listed on NSE. The result of the panel data methodology shows a positive and significant relationship between institutional investor’s ownership and banks financial performance. The study recommended that management of banks should give more attention to the large institutional shareholders due to their influence on the growth and survival of the company.

scholarly journals AUDIT COMMITTEE CAPABILITIES AND INTERNET FINANCIAL REPORTING OF LISTED FINANCIAL FIRMS IN NIGERIA

2021 ◽  
Vol 11 (3) ◽  
Author(s):  
Johnson Kolawole Olowookere ◽  
Tirimisiyu Kunle Lasisi
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
Secondary Data ◽  
Annual Reports ◽  
Future Research ◽  
Corporate Website ◽  
Financial Firms ◽  
Statistical Inferences ◽  
The Impact

The aim of this research is to look into the impact of audit committee capabilities and internet financial reporting on Nigerian listed financial firms. For this study, a correlation research design was used. All fifty-two (52) financial firms listed on the Nigerian Stock Exchange as of April 2020 make up the study's population. A total of 44 financial firms listed on the Nigeria Stock Exchange were sampled using a judgemental sampling process. Secondary data for measuring internet financial reporting transparency was extracted from the investor relations sections of each sample firm's corporate website, while secondary data for measuring audit committee capabilities came from the non-financial information section of the sampled firms' annual reports for a five-year period spanning the 2014 to 2018 financial years. The researchers used a pool of ordinary linear regressions to analyse the results. The validity of statistical inferences was tested using a diagnostic test. The study's results reveal that audit committee operation and competency have a significant positive relationship with internet financial reporting. Meanwhile, there is no connection between audit committee independence and audit committee size and internet financial reporting. As a result, the study suggests that regulators allow businesses to disclose financial details through their websites. A series of lectures or workshops should be held to inform the board and management about how the implementation of internet financial reporting will draw in more shareholders, increase transparency, and save money, according to the analysis. This study is restricted to only listed financial firms in Nigeria. Therefore, the findings of this study cannot be generalised. Because this study is limited to listed financial firms in Nigeria, future research can be expanded to other business sectors.

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 An exploration of the effect of organisational demography on board size and leadership structure: Evidence from the Greek manufacturing sector

2018 ◽  
Vol 14 (3) ◽  
pp. 46-57
Author(s):  
Dimitrios N. Koufopoulos ◽  
Ioannis P. Gkliatis
Keyword(s):  
Stock Exchange ◽  
Manufacturing Sector ◽  
Annual Reports ◽  
Board Structure ◽  
Board Size ◽  
Board Characteristics ◽  
Leadership Structure ◽  
Research Findings ◽  
Athens Stock Exchange ◽  
The Impact

This study examines how organisational demography (organizational age, organisational size and number of years listed in the Athens Stock Exchange, ATHEX), may impact the board structure (board size, CEO duality and CEO dependence/ independence). The relationships are proposed, under the light of data collected from the annual reports of all 140 manufacturing organisations quoted in the Athens Stock Exchange. Research findings revealed a significantly positive relationship of organisational size, organisational age and number of years that a firm is listed in the Stock Exchange with board size. However, these organisational characteristics do not influence the leadership structure or dependency/independency of the Chairperson to the CEO. While many studies examining the impact of board characteristics on various organisational outputs, including performance, reputation and effectiveness, there are limited studies investigating variables that affect board characteristics and as such the study opens discussion on potential predictors of board.

scholarly journals Investigating the Impact of Board of Directors on Accounting Conservatism in Kuwait

2020 ◽  
Vol 13 (9) ◽  
pp. 46
Author(s):  
Mejbel Al-Saidi
Keyword(s):  
Boards Of Directors ◽  
Stock Exchange ◽  
Accounting Conservatism ◽  
Board Independence ◽  
Agency Conflicts ◽  
Listed Firms ◽  
Independent Variables ◽  
Financial Firms ◽  
Kuwait Stock Exchange ◽  
The Impact

This study aims to study the influence of boards of directors on the accounting conservatism of non-financial listed firms in Kuwait Stock Exchange (KSE). According to agency theory, accounting conservatism and boards of directors can be considered effective mechanisms for reducing agency conflicts, thereby protecting the interests of investors that used the financial information while also increasing firms’ performance and value. This study sought to build a link between accounting conservatism and boards of directors by using a sample of 87 non-financial firms listed on the KSE at the end of 2019. The study used three independent variables (i.e., board size, board independence, and family directors) and found that none affected accounting conservatism. This study contributes to the literature by identifying the impact of boards of directors on accounting conservatism in Kuwait as no work has been done in this area before.

scholarly journals Investigasi Pengaruh Luasnya Pengungkapan Sukarela atas Keberadaan Komite Pengawas Manajemen Pada Perusahaan Manufaktur Di Indonesia

2020 ◽  
Vol 9 (1) ◽  
pp. 23-30
Author(s):  
Dinalestari Purbawati ◽  
Agung Budiatmo
Keyword(s):  
Risk Management ◽  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Management Committee ◽  
Oversight Committee ◽  
The Impact ◽  
Risk Management Committee

This study investigated the impact the existence from the oversight committee on the extent from voluntary disclosure of manufacturing company in Indonesia. The oversight committee consist of risk management committee and nomination and remuneration committe. The existence from the oversight committee of manufacturing companies who have never been broad mandatory will have an influence on the differences in the voluntary disclosure between the company which one with a company that other. Data was collected used a documentation technique from the annual reports manufacturing companies listed on the Indonesian Stock Exchange period 2015 until 2017. Sampling method used purposive sampling. The number of samples were 81 companies each year. Multiple linear regression analysis is tools used in this model. The final results showed that in parsial the existence from the risk management committee (RMC) had a positive significant effect of the extent from voluntary disclosure. In simultan test showed that oversight committee had a positive significant effect on the extent of voluntary disclosure. Suggestions for further research is to be able to add the use of data collection method as questionnaires and interviews in knowing more information about the existence of an oversight committee.

Voluntary information disclosure and sell-side analyst coverage intensity

2017 ◽  
Vol 16 (2) ◽  
pp. 260-280 ◽  
Author(s):  
Amal Hamrouni ◽  
Ramzi Benkraiem ◽  
Majdi Karmani
Keyword(s):  
Voluntary Disclosure ◽  
Information Disclosure ◽  
Stock Exchange ◽  
Annual Reports ◽  
Analyst Coverage ◽  
Content Type ◽  
Corporate Managers ◽  
Financial Firms ◽  
High Level ◽  
The Relationship

Purpose This paper aims to investigate whether a high level of voluntary disclosure attracts sell-side analysts. In other words, the authors check whether the number of analysts following a given firm increases with the extent of voluntary information that corporate managers provide in annual reports. Design/methodology/approach The paper relies on regression analyses to study the relationship between the level of coverage by sell-side analysts and the extent of voluntary disclosure for a sample of 155 non-financial firms listed on the Euronext Paris stock exchange and members of the SBF 250 index. Findings The empirical results show that the number of analysts following a given firm increases with the extent of voluntary disclosure. Consequently, the authors conclude that analysts are interested in the volume of information provided voluntarily by corporate managers. Their interest varies across the voluntary-information categories (strategic, financial, non-financial and governance) disclosed in annual reports. Originality/value This study extends previous research by investigating sell-side analysts’ preferences in terms of voluntary-information categories in annual reports. A better understanding of the effects of sub-categories of voluntary information is useful to corporate managers wishing to meet market expectations and attract sell-side analysts. In fact, the authors verify how each category of disclosed information (strategic, financial, non-financial and governance) affects the analyst coverage intensity. In addition, the authors apply our study in the rather interesting empirical setting that is France, which is characterized by a low investor protection and a large number of active analysts.

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