Determinants of risk disclosures in Kenyan listed companies

Wachira, Muturi

doi:10.5897/ajbm2018.8501

Cited by 20 publications

(34 citation statements)

References 44 publications

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“…The significance of the coefficient improves when unweighted RDI is considered. This result supports the fifth hypothesis, H5 and earlier studies such as Buckby et al (2015) and Muturi (2018). The implication is that leverage provides a greater incentive to disclose risk information so as to access cheaper financing.…”

Section: Multi-variate Analysissupporting

confidence: 87%

“…This is in line with prior studies (Tauringana and Chithambo, 2016); Domı ´nguez and G amez, 2014; Gonidakis et al, 2020). However, it contradicts the finding by Muturi (2018) Respondents B1 and B3 suggested that profit-making firms have the resources and capacity to manage risk than loss-making firms. Similarly, respondent F4 suggested that profitable firms have a high level of activities which expose them to different risks, hence, RD is useful.…”

Section: Multi-variate Analysissupporting

confidence: 79%

“…Equally, leverage was found to be a positive determinant of RD (Tauringana and Chithambo, 2016;Muturi, 2018) contrary to the finding of Dobler et al (2011), Aryani and Hussainey (2017) and Netti (2019). Regarding board-related attributes, Carmona et al (2016), Elshandidy and Neri (2015) and Nkuutu et al (2020) found a positive association between board size and RD, whilst Elzahar and Hussainey (2012), Allini et al (2016) and Khandelwal et al (2020) reported no association.…”

Section: Introductioncontrasting

confidence: 69%

“…For instance, Elshandidy and Shrives (2016), Gonidakis et al (2020) and Kiflee and Ali Khan (2021) reported a positive association between firm size and RD, whilst Rajab and Handley-Schachler (2009) and Mokhtar and Mellett (2013) reported insignificant association. Similarly, profitability was found to be a positive determinant of RD (Ntim et al , 2013; Muturi, 2018), whilst Hernández Madrigal et al (2015) and Tauringana and Chithambo (2016) found insignificant association.…”

Section: Introductionmentioning

confidence: 90%

“…Similarly, Deegan and Carroll (1993) argued that disclosure is a costly affair and a preserve for those who can afford it, hence, well-performing firms have the resources and capacity to meet the disclosure costs compared to poor-performing firms. Empirically, the majority of studies from multitheoretical perspectives suggest that profitability positively influences RD (Muturi, 2018;Ibrahim et al, 2019;Seta and Setyaningrum, 2017). Miihkinen (2012) H6.…”

Section: Firm-specific Factorsmentioning

confidence: 99%

See 4 more Smart Citations

An empirical examination of board-related and firm-specific drivers on risk disclosure by listed firms in Kenya: a mixed-methods approach

Mbithi

Moloi²,

Wang’ombe³

2022

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Purpose This study aims to examine the effect of board-related and firm-specific drivers on quality of risk disclosure (RD) by listed firms in Kenya. Design/methodology/approach This study uses explanatory sequential mixed-method. The quantitative approach uses content analysis to measure quality of RD and panel data regression to examine the effect of board-related and firm-specific factors on quality of RD. The results of regression analysis are informed by qualitative analysis through interviews with preparers of the annual report. Findings The results reveal that quality of RD is low but greater in the post-regulation than in the pre-regulation period. Additionally, the results of regression and interview analysis show that board-related (board independence and board gender diversity) and firm-specific factors (firm size and leverage) positively influence the quality of RD. Research limitations/implications This study focused on listed non-financial firms; this may affect the generalisation of the findings among financial firms. Practical implications The findings highlight the effectiveness of the Companies Act in improving RD practice in Kenya. However, the low-quality RD suggests that more consideration should be taken to review the current regulations. This study also suggests that board independence, board gender diversity, leverage and firm size are attributes that require regulatory focus to enhance quality of RD. Social implications This study contributes to the ongoing discussions about RD to improve worldwide. Originality/value This paper adds to the limited studies investigating RD and drivers using mixed methods in developing countries. Specifically, this study develops a novel measure of RD and examines its drivers (board-related and firm-specific) using agency and institutional theories.

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Section: Multi-variate Analysissupporting

confidence: 87%

Section: Multi-variate Analysissupporting

confidence: 79%

Section: Introductioncontrasting

confidence: 69%

Section: Introductionmentioning

confidence: 90%

Section: Firm-specific Factorsmentioning

confidence: 99%

See 3 more Smart Citations

An empirical examination of board-related and firm-specific drivers on risk disclosure by listed firms in Kenya: a mixed-methods approach

Mbithi

Moloi²,

Wang’ombe³

2022

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COVID-19-related accounting disclosures in the financial statements: evidence from an emerging economy

Karim,

Reza,

Shetu

2024

ARJ

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Purpose This study aims to explore COVID-19-related accounting disclosures using sociological disclosure analysis (SDA) within the context of the developing economy of Bangladesh. Design/methodology/approach COVID-19-related accounting disclosures from listed banks’ annual reports have been examined using three levels of SDA: textual, contextual and sociological interpretations. Data were gathered from the banks’ 2019 and 2020 annual reports. The study uses the legitimacy theory as its theoretical framework. Findings The research reveals a substantial shift in corporate disclosures due to COVID-19, marked by a significant increase from 2019 to 2020. Despite regulatory and professional directives for COVID-19-specific disclosures, notable non-compliance is evident in subsequent events, going concern, fair value, financial instruments and more. Instead of assessing the implications of COVID-19 and making disclosures, companies used positive, vague and subjective wording to legitimize non-disclosure. Practical implications The study’s insights can inform regulators and policymakers in crafting effective guidelines for future crisis-related reporting like COVID-19. The research adds to the literature by methodologically using SDA to explore pandemic-specific disclosures, uncovering the interplay between disclosures, legitimacy and stakeholder engagement. Originality/value This study represents a pioneering effort in investigating COVID-19-specific disclosures. Moreover, it uses the SDA methodology along with the legitimacy theory to analyze accounting disclosures associated with COVID-19.

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Audit committee attributes, board of director’s independence and energy disclosure for environmental sustainability in Nigeria

Jibril,

Isa,

Maigoshi

et al. 2023

IJIS

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Purpose This study aims to examine how audit committee (AC) attributes influence quality and quantity disclosure of energy consumed by the listed nonfinancial firms for the period of five years (2016–2020). The study aims at providing empirical evidence on how board of director’s independence influences the relationship between AC attributes and firms’ energy in achieving sustainable development goals (SDGs) on world climate policy. Design/methodology/approach The study obtained data from a sample of 83 listed nonfinancial firms, content analysis technique was used to compute energy disclosure indexes using global reporting initiative standards, while regression analysis was conducted to test the relationship among research variables. Findings The study revealed that AC independence, diversity and meetings were significantly related with energy disclosure. Also, the study found that other variables were insignificantly related with energy disclosure. Research limitations/implications The study is constrained for not considering all listed firms in the country. Furthermore, the study considered selected attributes, other important audit-committee size attributes such as audit-committee size, audit-committee size tenure could be study in by the future study. Practical implications The study’s findings would have practical implications for corporations and other business organizations seeking to actively involve the energy-related SDGs 7 and 13 in their business models and successfully communicate these efforts to stakeholders. Originality/value To the best of author’s knowledge, this is the first study that provides empirical evidence on the effect of AC attributes on the energy disclosure using effect of board independence as moderator in Nigeria.

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Determinants of risk disclosures in Kenyan listed companies

Cited by 20 publications

References 44 publications

An empirical examination of board-related and firm-specific drivers on risk disclosure by listed firms in Kenya: a mixed-methods approach

An empirical examination of board-related and firm-specific drivers on risk disclosure by listed firms in Kenya: a mixed-methods approach

COVID-19-related accounting disclosures in the financial statements: evidence from an emerging economy

Audit committee attributes, board of director’s independence and energy disclosure for environmental sustainability in Nigeria

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