Determinants of forward-looking disclosure: evidence from Bahraini capital market

Mousa, Gehan A.; Elamir, Elsayed A. H.

doi:10.1504/aajfa.2018.089189

Cited by 23 publications

(46 citation statements)

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“…According to the attributes of FLD quality, we find that the chairman's statement in Oman is dominated by non-financial, good, long-term and qualitative FLD, which is consistent with previous studies (e.g. Mousa and Elamir 2018; Al Lawati and Hussainey 2020), with an average of 51%, 86%, 65% and 80% respectively for each of the FLD quality dimension as follow: FinQaulity, Tone, TimeQuality and QLYOrientation. This indicates that Omani financial companies are moving forward towards disclosing high quality relevant information to help the shareholders in making appropriate decisions.…”

Section: Descriptive Statisticssupporting

confidence: 90%

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Disclosure quality vis-à-vis disclosure quantity: Does audit committee matter in Omani financial institutions?

Lawati

Hussainey

Sagitova

2021

Rev Quant Finan Acc

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We examine the impact of audit committee (AC) characteristics (e.g. AC foreign members, AC female members, AC members with multiple directorships, AC members with share ownership and AC with financial and supervisory expertise) on forward-looking disclosure (FLD) quality and quantity. Using a sample of Omani financial companies listed on Muscat Securities Market over a five-year period (2014–2018), we find that a number of AC characteristics (such as AC size, AC female members and AC with multiple directorships) improve FLD quality. We make no such observation for FLD quantity. The results suggest that the responsibility of AC extends to improving the quality of FLD. We provide an additional analysis on the impact of AC effectiveness (ACE) on FLD quality, which suggests that companies’ compliance with CG code is beneficial for disclosure quality. We also find that the impact of ACE on FLD quality is influenced by corporate performance, leverage and the quality of external auditors. Our findings carry implications for the regulatory bodies’ efforts in encouraging companies to improve disclosure quality by considering AC characteristics as well as appointing more effective AC directors.

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Section: Descriptive Statisticssupporting

confidence: 90%

“…There is a number of studies that examine FLD in developing countries (Aljifri and Hussainey 2007;Aljifri et al 2013;Alqatamin et al 2017;Elgammal et al 2018;Mousa and Elamir 2018;Al Lawati and Hussainey 2020). They find that some company characteristics (such as, company size, leverage and profitability) affect the level of FLD.…”

Section: Literature Reviewmentioning

confidence: 99%

Disclosure quality vis-à-vis disclosure quantity: Does audit committee matter in Omani financial institutions?

Lawati

Hussainey

Sagitova

2021

Rev Quant Finan Acc

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“…Hence, hypothesis H1 is accepted. This finding agrees with the results reported by Mousa and Elamir (2018).…”

Section: Regression Analysissupporting

confidence: 94%

The relationship between corporate forward-looking disclosure and stock return volatility

Mousa

Elamir

2018

Problems and Perspectives in Management

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(2018). The relationship between corporate forward-looking disclosure and stock return volatility. Problems and Perspectives in Management, 16(3), 130-149. doi:10.21511/ppm.16(3) AbstractThe study assesses corporate forward-looking disclosure by measuring four attributes, namely disclosure quantity, disclosure coverage, disclosure concentration and disclosure quality, through a sample of 34 listed firms in the Bahrain Bourse from 2014 to 2017. The study also investigates the relationship between these attributes and stock return volatility. Regression analysis has been employed with five different models to examine the relationship between the four attributes of corporate forward-looking disclosure and stock return volatility. The main finding of this study agrees with the results of Bravo et al. (2009) who found that the selection of a specific disclosure index could influence crucially the results of the analysis. In addition, stock return volatility has a statistically significant negative association with the three attributes of forward-looking disclosure, namely disclosure quantity, disclosure coverage and disclosure quality. In contrast, it has a non-significant association with the fourth attribute of forward-looking disclosure, disclosure concentration. This study provides a novel contribution to disclosure quality studies by being the first study to examine forward-looking disclosure quality attributes in the Kingdom of Bahrain.

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“…Finally, they explained that the market was too powerful to depend on historical data only but on both forward looking and backward information disclosures in order to decrease the amount of asymmetry of information between investors and managers. In contrast, Arya, Mittendorf and Ramanan (2017) and Mousa and Elamir (2018) argued that there are some debates concerning the disclosure of forward-looking-information ; Firstly, because of the uncertainties and risks related to the future, it might be very hard and tricky to forecast with certainty, and firms may try to push their actual performance towards their forecasted performance level. Secondly, some inaccurate projections might result in having lawsuits; it was compati-ble with the hypothesis of litigation risk.…”

Section: Information With Forward-looking Naturementioning

confidence: 99%

“…Forward-looking information is the information disclosed by companies about forecasts such as cash flows, revenues prediction, and sales volume. It also in-volves data related to non-financial projections such as factors that might influence the performance of the company in the future for example, ambiguity of future business operations, evaluation, agency relationship, risk, analysis and other company"s relevant information (Aljifri and Hussainey, 2007;Kılıç and Kuzey, 2018;Menicucci, 2018;Mousa and Elamir, 2018). This type of information is very helpful because information about the past can be used as an indicator of performance but cannot guarantee future results.…”

Section: Introductionmentioning

confidence: 99%

تأثیر خصائص مجلس الإدارة علی الإفصاح عن المعلومات المستقبلیة دلیل من بورصة الأوراق المالیة المصریة (باللغة الانجلیزیة)

الدیب¹,

الشرقاوی²

2019

مجلة الاسکندریة للبحوث المحاسبیة

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Purpose -The paper aims to empirically test the impact of the corporate governance mechanisms related to the board characteristics on the forward-looking disclosures of companies listed in the Egyptian stock market.Design/methodology/approach-This study used Board size, Board independence, Board CEO duality, and gender diversity as measures for corporate governance mechanism in relation to the board characteristics. Forward looking disclosures were investigated using a checklist that included 24 items distributed over 4 categories of disclosure (1-environment around the company, 2-Goals, strategies and business policies, 3-organization, management and corporate structure and 4-Financial issues) through a content analysis where a score was calculated by adding the sum of disclosed items in the company"s annual report and then divide them by the total number of items. Two control variables were used: firm size which was measured by the natural logarithm of total assets and auditor type which is a dummy variable taking a value of 0 for non-Big 4 audit firms and 1 for Big 4). The sample included the most active 30 companies (EGX30) in the Egyptian stock exchange market covering the period from 2010 till 2017. Data were analyzed using regression analysis.The Impact of Board …….… 2 FindingsThe research findings showed a positive significant correlation between that CEO duality and the forward-looking disclosure, and a negative significant correlation between Board gender diversity and the disclosure of forward-looking information. The content analysis results for the company"s annual reports indicated that management is disclosing more qualitative forward-looking disclosures than the quantitative forward-looking disclosures. In addition, results showed that the auditor type and board company size have a positive impact on the disclosure of the forward-looking information. In contrast, the results did not show a significant correlation between board independence and the board size with the disclosure of the forward-looking information. Research QuestionsThis research aims to provide answers to the following main question: Q1. Is there a significant correlation between the board characteristics and disclosure of forward-looking information?The main question can be divided into the following sub-questions:Q1a. Is there a significant correlation between the board size and disclosure of forward-looking information?Q1b. Is there a significant correlation between board independence and disclosure of the forward looking information?Q1c. Is there a significant correlation between duality of CEO and disclosure of the forward looking information?Q1d. Is there a significant correlation between gender diversity of the board and disclosure of the forward looking information?

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Determinants of forward-looking disclosure: evidence from Bahraini capital market

Cited by 23 publications

References 0 publications

Disclosure quality vis-à-vis disclosure quantity: Does audit committee matter in Omani financial institutions?

Disclosure quality vis-à-vis disclosure quantity: Does audit committee matter in Omani financial institutions?

The relationship between corporate forward-looking disclosure and stock return volatility

تأثیر خصائص مجلس الإدارة علی الإفصاح عن المعلومات المستقبلیة دلیل من بورصة الأوراق المالیة المصریة (باللغة الانجلیزیة)

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