Corporate financial disclosure in emerging markets: Does economic development matter?

Salter, Stephen B.

doi:10.1016/s0020-7063(98)90027-9

Cited by 93 publications

(71 citation statements)

References 19 publications

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“…However, they suffer from low investor protection practices, especially expropriation of minority shareholders both by managers and controlling shareholders (Gonenc and Aybar, 2006). They have higher information asymmetry between managers and investors (Gul and Leung, 2004;Chau and Gray, 2010), and have lower level of disclosure than those in developed market economies (Salter, 1998;Tower et al, 2011;And Wang et al, 2008).These two factors (i.e. low minority investor protection and low disclosure level) might be detrimental by keeping foreign investors away from the marketplace, and set an obstacle to the international capital flow toward these economies.…”

Section: Literature Review and Development Of Hypothesismentioning

confidence: 99%

Firm Characteristics and the Extent of Voluntary Disclosure: The Case of Egypt

Soliman

2013

SSRN Journal

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In a society depending on real time information, corporate disclosure is crucial for the capital market efficiency. The more disclosures a company makes, the more transparent becomes the information to investors, the lower becomes the information asymmetry and more credible the firms will be for the market. The purpose of this study is to investigate the association between the voluntary disclosure level in annual reports and firm characteristics of more active 50 Egyptian companies listed on the Egyptian Stock Exchange of the non-financial sector during the period 2007-2010. The firm characteristics used in the study are: firm size, auditor size, profitability, and firm's age. A disclosure checklist consisting of 60 voluntary items of information is developed and statistical analysis is performed using multiple regression analysis. The results of univariate and multivariate analyses indicated that firm size and profitability have significant positive association with voluntary disclosure level in annual reports. On the other hand, auditor size and firm's age do not have any significant association with voluntary disclosure level. However, this paper has contributed to the academic literature that firms in the Middle East provide voluntary corporate information which builds a confidence to the investors in general.

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Section: Literature Review and Development Of Hypothesismentioning

confidence: 99%

Firm Characteristics and the Extent of Voluntary Disclosure: The Case of Egypt

Soliman

2013

SSRN Journal

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“…Moreover, financial disclosures by firms listed on stock exchanges can be influenced by total market capitalization (e.g., Adhikari and Tondkar, 1992;Salter, 1998), and also by the disclosure requirements of stock exchanges. Based on this evidence, we expect that there will be a positive association between financial disclosures and market capitalization.…”

Section: Capital Marketsmentioning

confidence: 99%

“…The IFRI scores, which are calculated from actual disclosures and not from disclosure requirements, have been considered reliable and used by other studies (for example, Salter, 1998). Cooke and Wallace (1989) audited the database and concluded that the scores were developed with great care and every attempt was made to prevent inadequacies and pitfalls.…”

Section: Financial Disclosuresmentioning

confidence: 99%

“…The model shows that socio-political and economic environments of a country influence financial disclosures through intervening variables (see for example, Cooke and Wallace, 1990;Riahi-Belkaoui, 1995, 1997Salter, 1998;Salter and Niswander, 1995). Several institutions in a society are the outgrowth of a socio-political environment, and these institutions include LSs, family groups, social groups, educational groups, etc.…”

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confidence: 99%

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Impact of Culture, Market Forces, and Legal System on Financial Disclosures

Jaggi

Low

2000

The International Journal of Accounting

410

259

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This study examines the impact of legal systems (LSs) on financial disclosures by firms from different countries. The results indicate that firms from common law countries are associated with higher financial disclosures compared to firms from code law countries. The findings also reveal that cultural values have an insignificant impact on financial disclosures by firms from common law countries, and the results on firms from code law countries provide mixed signals. The results for multinationals are similar to the results for the total sample. The cultural values have no impact on financial disclosures of multinationals from common law countries, and there are mixed signals for multinationals from code law countries.Influence of cultural environment on accounting standards and practices has been examined by several studies (e.g

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“…This method for measuring the level of disclosure varies and is dependent on the composition of the information, even on the basis of the subject researched and the degree of importance attached to certain parts of the information by the researcher. With reference to this last observation, it is important to specify that in research focusing on disclosure, most researchers created ad-hoc indexes for the analysis they were undertaking (on the basis of the aspects of interest to the study), but it is not uncommon for cases where in order to measure the level of quality of disclosure using a score, the authors (e.g., Patel, Balic, & Bwakira, 2002;Ali et al, 2007;Barron, Kile, & O'Keefe, 1999;Salter, 1998;Hope, 2003a;2003b) have relied on indexes created by external parties such as financial analysts or professional organizations (such as, for example, CIFAR "Centre for International Financial Analysis and Research"). The advantage of this approach, highlighted by Marston and Shrives (1991), is that it provides a greater possibility for comparison with studies previously conducted using the same indexes.…”

Section: Disclosure Indexesmentioning

confidence: 99%

Assessing Disclosure Quality: A Methodological Issue

Scaltrito¹

2015

JMAA

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The voluntary disclosure studies conducted until today, in social accounting and related fields, use different approaches to evaluate the so-called "disclosure quality". Disclosure quality is not so easy to measure, and it is derived from the application of different methodologies. In particular, the methodologies to assess the level of disclosure could be classified as subjective or objective. To the first category belong all the "tools" that are used directly without relying on the analysis of the original source of the information studies (Imhoff, 1992;Coleman & Eccles, 1997;Welker, 1995). The objective measurements used to assess the disclosure quality are, instead, based on the direct study of the original information source in order to obtain the information required (Krippendorff, 1980;Weber, 1985;Botosan, 1997;Lang & Lundholm, 2000). The aim of the paper is to give scholars and researchers a brief framework to understand the different methodologies used in accounting literature to assess the disclosure quality, providing examples of the application of the same in different research contexts.

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Corporate financial disclosure in emerging markets: Does economic development matter?

Cited by 93 publications

References 19 publications

Firm Characteristics and the Extent of Voluntary Disclosure: The Case of Egypt

Firm Characteristics and the Extent of Voluntary Disclosure: The Case of Egypt

Impact of Culture, Market Forces, and Legal System on Financial Disclosures

Assessing Disclosure Quality: A Methodological Issue

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