Purpose This study aims to investigate the association between corporate environmental disclosure (CED) and earnings management (EM) in a Gulf Cooperation Council (GCC) emerging market, namely, Kuwait. Design/methodology/approach Using panel data from firms listed on the Kuwaiti stock exchange from 2010 to 2014, this paper applies a fixed-effects model to examine the CED-EM nexus. This analysis was supplemented with estimating a two-stage least-squares (2SLS) model and a generalised method of moment model to address any concerns regarding endogeneity problems. Findings The results are suggestive of a significant and negative relationship between CED and EM in Kuwait. This implies that the environmentally responsible managers are less likely to be engaged in EM practices in Kuwait. Research limitations/implications The theoretical implication of the results of this study is that managers in Kuwait seem to use CED as a method to decrease the possibility of any formal or informal actions that could be imposed upon their activities. Originality/value So far, a limited number of studies focused on examining the CED-EM nexus internationally. Furthermore, studies carried out to examine the CED-EM link within a GCC market is virtually non-existent. This study, therefore, presents the first empirical analysis of this relationship in Kuwait. Also, this study is of a significant value stemming from the environmental challenges that are facing Kuwait as an oil-reliant economy coupled together with the crucial economic development in Kuwait and its critical contribution to the GCC economy.

Purpose This study aims to examine whether the size of internal audit functions (IAFs) is significantly related to factors documented by related prior auditing research, namely, diffusion of ownership, firm size, affiliation to the financial services industry, proportion of assets in the form of receivables and inventory, audit committee’s size and the presence of risk management committee. Design/methodology/approach Using data related to companies listed on the Kuwait Stock Exchange, this study uses a regression model to examine research hypothesis related to factors predicted to have an association with the size of the firm’s IAF. Findings The results of the current study provide evidence of a significantly positive relation between the size of the IAF and firm’s affiliation to the finance sector, audit committee’s size and the presence of a separate risk management committee. Such empirical evidence, which stems from the Kuwaiti market, is expected to be valuable for regulators and policy makers as well as audit researchers interested in linking it to the international empirical findings about this issue documented in other audit markets. Originality/value This study is original because it is the first to empirically examine factors associated with the size of IAFs in the GCC region, including Kuwait.

The current study aims at extending prior accounting research on the association between Corporate Social Responsibility Disclosure (CSRD) and Corporate Financial Performance (CFP) using a sample of listed firms on Kuwait Stock Exchange (KSE) from 2011 to 2012. It conducts a regression analysis to investigate the association between CSRD and CFP, as well as investigates the impact of firm size, leverage, and industry affiliation as the key determinants suggested by prior research on the level of CSRD. The results of the present study reveal that both CFP and firm size have significant positive associations with CSRD, whereas, in contrast, firm’s leverage and firm’s industry affiliation show non-significant associations with CSRD.

Purpose -The study aims to examine the role of unrealized gains and losses recognized under international accounting standards (IAS) 39 in explaining stock prices for investment companies listed on the Kuwait Stock Exchange (KSE), and how the inclusion of unrealized gains and losses in income numbers affect the incremental explanatory power of earnings. Design/methodology/approach -The study utilizes Ohlson's (1995) valuation model combined with a technique developed by Theil (1971) that has been applied in several prior studies. Findings -The results of the cross-sectional regression indicate that net income and book values jointly and individually are positively and significantly related to stock prices; the incremental information content of net income is greater than that of book values; the inclusion of unrealized gain in income numbers increases the explanatory power of the model; and the incremental information content of net income before unrealized gains and losses is lower than that of book value. Thus, including unrealized gains and losses from investment in net income enhances the incremental information content of earnings. Our overall results show that unrealized gains and losses play an important role in explaining stock prices for investment companies in Kuwait, and that including them in the income numbers increases the incremental explanatory power of earnings. Originality/value -This study is original because it is the first to empirically investigate the role of unrealized gains and losses recognized under IAS 39 in explaining stock prices for investment companies listed on the KSE and how the inclusion of unrealized gains and losses in income numbers affect the incremental explanatory power of earnings.

Concerns about the potential harm of the increased economic bond between the audit firm and the audit client resulting from the joint provision of audit and NAS have been investigated extensively in the audit literature. However, much of this research was conducted in developed countries’ settings, with very little, if any, carried out in the context of a developing country. The current study aims at filling this gap in audit research by investigating two important issues related to the joint provision using data from the Kuwaiti audit market. First, this study examines whether there is an association between the provision of NAS to the audit client and audit firm’s tenure as a surrogate of audit independence. Second, the current study aims at examining factors expected to influence clients’ purchase of NAS in the Kuwaiti audit market. Contrary to expectations, the results reveal a negative relationship between the joint provision and external audit firm’s tenure, suggesting that such a joint provision does not lead to the impairment of auditor independence. Results obtained from the NAS purchase logistic regression also show that audit client’s purchase of NAS from their audit firms is positively related to the amount of audit fees and client’s financial leverage.

Although auditor choice has been studied extensively in the audit literature, research examining this issue in developing markets has been scarce thus far. The objective of this study is to investigate the impact of corporate governance (CG) on external auditor choice in the context of the small Kuwaiti emerging market. Specifically, the present study uses both a survey and hand-collected 2012 fiscalyear data pertinent to 53 Kuwaiti listed companies to examine whether firm's auditor choice is influenced by company's board size, board independence, directors' shareholdings, Audit Committee (AC) size, and/or AC independence. Using a logistic regression model, the study's results reveal evidence of a meaningful relation between auditor choice and AC size, company's leverage, and company's belonging to the finance sector. These findings could be useful to market regulators and corporate executives, especially in Kuwait, in improving CG practices within corporations. The research findings should also be of value to international researchers interested in carrying out related research.

Purpose: The purpose of the current study is to examine factors influencing Audit Committee (AC) meeting frequency in the Kuwaiti market. In particular, this study aims at investigating whether AC meeting frequency is significantly related to ownership concentration, board ownership, board characteristics, AC characteristics, and certain firm organizational characteristics. A regression model is used to examine the research questions of interest using data related to firms listed on the Kuwait Stock Exchange (KSE). The study's results show that AC meeting frequency is positively related to ownership concentration, the audit firm type, and firm's affiliation to the finance industry, but is negatively related to board independence and firm's financial leverage. The results, however, reveals no significant relationship between AC meeting frequency and board size, or any of the AC characteristics examined.

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