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Article
Publication date: 12 November 2018

Mohammed M. Elgammal, Khaled Hussainey and Fatma Ahmed

The purpose of this paper is to examine the impact of corporate governance on risk and forward-looking disclosures in Qatar.

Abstract

Purpose

The purpose of this paper is to examine the impact of corporate governance on risk and forward-looking disclosures in Qatar.

Design/methodology/approach

The authors automatically measure levels of risk and forward-looking disclosures in the annual reports of Qatari firms for the period 2008–2014. The authors also use two ways clustered error pooled panel regressions to examine the determinants of these disclosures.

Findings

The authors find that firms with a higher percentage of foreign ownership disclose more forward-looking information; conversely, board size has a negative impact on the forward-looking disclosure. Financial firms tend to disclose less forward-looking information, however, they tend to disclose more forward-looking information after the 2008 global financial crisis. The authors also find negative relationships between the risk disclosure and both the number of non-executive members of the board of directors and duality role of the CEO.

Research limitations/implications

The study uses the quantity of disclosure as a proxy for the quality of disclosure.

Practical implications

The findings should help the users of corporate annual reports in Qatar to understand managerial incentives for reporting risk and forward-looking information. This should help regulators to set a proper set of disclosure rules. Moreover, this study increases our understanding of the behavior of international investors and the board characteristics (i.e. board size) in motivating risk and forward-looking disclosures in Qatari firms.

Originality/value

The authors provide the original empirical evidence on the impact of corporate ownership and board characteristics on risk and forward-looking disclosures for Qatari firms using two ways clustered error pooled panel regressions.

Details

Journal of Applied Accounting Research, vol. 19 no. 4
Type: Research Article
ISSN: 0967-5426

Keywords

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Article
Publication date: 20 August 2019

Issal Haj Salem, Salma Damak Ayadi and Khaled Hussainey

The purpose of this paper is to investigate the potential influence of corporate governance mechanisms on risk disclosure quality in Tunisia.

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1068

Abstract

Purpose

The purpose of this paper is to investigate the potential influence of corporate governance mechanisms on risk disclosure quality in Tunisia.

Design/methodology/approach

The authors examine 152 annual reports of Tunisian non-financial-listed firms during 2008–2013, and use the manual content analysis method to measure the risk disclosure quality.

Findings

The authors find that the quality of risk disclosure in Tunisian companies is relatively low, and also find that the quality of risk disclosure is positively associated with institutional ownership, board independence, the presence of women on the board, the presence of family members on the board and the independence of audit committee. Managerial ownership has a negative effect on risk disclosure quality. Finally, the authors find that the revolution decreases the influence of concentration ownership, government ownership, family ownership and audit committee size on risk disclosure quality.

Originality/value

Using a comprehensive set of corporate governance mechanisms and a new measure for risk disclosure quality in Tunisia, the authors provide the first empirical evidence on the impact of corporate governance mechanisms on risk disclosure quality in a developing country. The study has theoretical and practical implications for both developed and developing countries.

Details

Journal of Accounting in Emerging Economies, vol. 9 no. 4
Type: Research Article
ISSN: 2042-1168

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Article
Publication date: 21 April 2020

Noha Elberry and Khaled Hussainey

The authors examine the impact of corporate investment efficiency on corporate voluntary disclosure for a sample of UK non-financial companies.

Abstract

Purpose

The authors examine the impact of corporate investment efficiency on corporate voluntary disclosure for a sample of UK non-financial companies.

Design/methodology/approach

The authors use a sample of FTSE All-Share firms for the period of 2007–2014. Disclosure scores are collected from Corporate Financial Information Environment (CFIE). They follow Biddle et al. (2009) and Chen et al. (2011) in measuring corporate investment efficiency.

Findings

The authors find that high level of performance-related disclosure is associated with high level of corporate investment efficiency, while high level of good news information is associated with low level of corporate investment efficiency. They also find evidence on a bidirectional relation between disclosure and corporate investment efficiency.

Research limitations/implications

The authors’ findings would be of importance to stakeholders and corporations. Stakeholders' investment decisions could be facilitated by understanding the disclosures provided by their firms and how these firms' performance is presented. Corporations become aware of the language which must be used to signal their performance.

Practical implications

Corporations become aware of the language which must be used in their disclosures. As firms may reflect their efficient investments but not in the form of good news in order to avoid revealing their competitive advantage to competitors.

Originality/value

This paper adds to disclosure studies by introducing a new variable, corporate investment efficiency, as a determinant of corporate disclosure practice.

Details

Journal of Applied Accounting Research, vol. 21 no. 2
Type: Research Article
ISSN: 0967-5426

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Article
Publication date: 11 October 2021

Mahmoud Elmarzouky, Khaldoon Albitar and Khaled Hussainey

This paper aims to investigate whether Covid-19 related information is associated with a higher level of performance disclosure in the annual reports. Furthermore, it…

Abstract

Purpose

This paper aims to investigate whether Covid-19 related information is associated with a higher level of performance disclosure in the annual reports. Furthermore, it examines the moderating effect of corporate governance on the relationship between Covid-19 and the performance disclosure by using three governance mechanisms: board size, board independence and gender diversity.

Design/methodology/approach

The authors use quantitative content analysis. The authors applied an automated textual analysis technique to measure the level of Covid-19 information and performance disclosure for the UK Financial Times Stock Exchange all-share non-financial firms.

Findings

The authors found a significant positive relationship between the Covid-19 disclosure and the firm performance disclosure in the annual reports. The authors also find that both board independence and gender diversity moderate the relationship between the Covid-19 related information and the level of performance disclosure in the annual reports. The authors further run a robustness analysis, which confirms the main results.

Practical implications

The finding is beneficial for the regulatory setters to better understand whether firms provide generic or meaningful Covid-19 information linked to the firm’s performance. The unique findings of this paper are relevant to regulators, governments, management, shareholders and academics.

Originality/value

The authors contribute to the literature in a unique and core research area not researched previously. The paper links the Covid-19 disclosure with the firm performance from the corporate narrative perspective. The paper underlines governance factors as a moderating role in this relationship by considering three main mechanisms: board size, board independence and gender diversity.

Details

International Journal of Accounting & Information Management, vol. 29 no. 5
Type: Research Article
ISSN: 1834-7649

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Article
Publication date: 28 January 2020

Tawida Elgattani and Khaled Hussainey

The purpose of this study is to investigate the influence of corporate governance mechanisms on Accounting and Auditing Organization for Islamic Financial Institution…

Abstract

Purpose

The purpose of this study is to investigate the influence of corporate governance mechanisms on Accounting and Auditing Organization for Islamic Financial Institution (AAOIFI) governance disclosure in Islamic Banks.

Design/methodology/approach

To test the research hypotheses, the authors created a comprehensive AAOIFI governance disclosure index and used regression analysis for a sample of Islamic banks for the financial years within the period 2013-2015.

Findings

The authors found that audit committee size is the main determinant of the AAOIFI governance disclosure.

Research limitations/implications

This study has a number of limitations that could be taken as avenues for a future study such as, the study used the six variables of CG and the four variables of firm characteristics, based on available data. This research is limited to just Islamic banks.

Originality/value

The research contributes to Islamic accounting literature by identifying the driver for the AAOIFI governance disclosure for Islamic banks that mandatorily adopt AAOIFI standards.

Details

Journal of Financial Reporting and Accounting, vol. 18 no. 1
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 21 May 2020

Mohamed A.K. Basuony, Ehab K.A. Mohamed, Ahmed Elragal and Khaled Hussainey

This study aims to investigate the extent and characteristics of corporate internet disclosure via companies’ websites as well via social media and networks sites in the…

Abstract

Purpose

This study aims to investigate the extent and characteristics of corporate internet disclosure via companies’ websites as well via social media and networks sites in the four leading English-speaking stock markets, namely, Australia, Canada, the UK and the USA.

Design/methodology/approach

A disclosure index comprising a set of items that encompasses two facets of online disclosure, namely, company websites and social media sites, is used. This paper adopts a data science approach to investigate corporate internet disclosure practices among top listed firms in Australia, Canada, the UK and the USA.

Findings

The results reveal the underlying relations between the determining factors of corporate disclosure, i.e. profitability, leverage, liquidity and firm size. Profitability in its own has no great effect on the degree of corporate internet disclosure whether via company websites or social media sites. Liquidity has an impact on the degree of disclosure. Firm size and leverage appear to be the most important factors driving better disclosure via social media. American companies tend to be on the cutting edge of technology when it comes to corporate disclosure.

Practical implications

This paper provides new insights into corporate internet disclosure that will benefit all stakeholders with an interest in corporate reporting. Social media is an influential means of communication that can enable corporate office to get instant feedback enhancing their decision-making process.

Originality/value

To the best of the authors’ knowledge, this study is amongst few studies of corporate disclosure via social media platforms. This study has adopted disclosure index incorporating social media as well as applying data science approach in disclosure in an attempt to unfold how accounting could benefit from data science techniques.

Details

Accounting Research Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1030-9616

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Article
Publication date: 30 April 2018

Modest Paul Assenga, Doaa Aly and Khaled Hussainey

This paper aims to investigate the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside…

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2285

Abstract

Purpose

This paper aims to investigate the impact of board characteristics on the financial performance of listed firms in Tanzania. Board characteristics, including outside directors, board size, CEO/Chair duality, gender diversity, board skill and foreign directors are addressed in the Tanzanian context by applying two corporate governance theories, namely, agency theory and resource dependence theory.

Design/methodology/approach

The paper uses balanced panel data regression analysis on 80 firm-years observations (2006-2013) from annual reports, and semi-structured interviews were conducted with 12 key stakeholders. The study uses also a mixed methods approach and applies a convergent parallel design (Creswell and Plano Clark, 2011) to integrate quantitative and qualitative data.

Findings

It was found that in terms of agency theory, while the findings support the separation of CEO/Chairperson roles, they do not support outside directors-financial performance linkage. With regard to resource dependence theory, the findings suggest that gender diversity has a positive impact on financial performance. Furthermore, the findings do not support an association between financial performance and board size, PhD qualification and foreign directors.

Practical implications

The study contributes to the understanding of board-performance link and provides academic evidence to policy makers in Tanzania for current and future governance reforms.

Originality/value

The findings contribute to the literature by providing new and original insights that, within a developing setting, extend current understanding of the association between corporate governance and financial performance. This is predicated, also, on the use of uncommon mixed methods approach.

Details

Corporate Governance: The International Journal of Business in Society, vol. 18 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

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Article
Publication date: 6 November 2017

Kais Baatour, Hakim Ben Othman and Khaled Hussainey

The study aims to examine the effect of multiple directorships on accrual-based earnings management and real earnings management. It analyses whether earnings management…

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1510

Abstract

Purpose

The study aims to examine the effect of multiple directorships on accrual-based earnings management and real earnings management. It analyses whether earnings management practices in the Saudi context increase or decrease with the average number of multiple directorships.

Design/methodology/approach

The study uses the approach by Roychowdhury (2006) to capture the level of real earnings management and uses the cross-sectional model by Jones (1991) to measure accrual-based earnings management.

Findings

The paper provides partial evidence supporting the “busyness” hypothesis where earnings management practices increase with the number of multiple directorships. The evidence shows that multiple directorships have a positive and significant effect on real earnings management in the Kingdom of Saudi Arabia. However, we find no significant impact of multiple directorships on accrual-based earnings management.

Originality/value

This is the first study that empirically investigates the relationship between multiple directorships and earnings management in the Kingdom of Saudi Arabia. The paper contributes to the limited literature on multiple directorships in developing countries by examining their impact on opportunistic real earnings management.

Content available
Article
Publication date: 2 October 2017

Khaled Hussainey and Ahmed Hassanein

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499

Abstract

Details

Journal of Financial Reporting and Accounting, vol. 15 no. 3
Type: Research Article
ISSN: 1985-2517

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Article
Publication date: 9 February 2021

Stuart Mcchlery and Khaled Hussainey

This paper contributes to risk management research with reference to disclosure of risk specific information within the oil and gas industry. This paper provides empirical…

Abstract

Purpose

This paper contributes to risk management research with reference to disclosure of risk specific information within the oil and gas industry. This paper provides empirical evidence regarding voluntary and mandatory disclosure behaviour from both a quantitative and qualitative perspective.

Design/methodology/approach

A longitudinal empirical study examines probabilistic reserve quantum reporting of UK companies, over a time-period spanning voluntary and mandatory disclosure. The researchers analyse disclosure behaviour under voluntary and mandatory time spans using a logistical regression approach to measure determinants of risk reporting. Form of regulation is considered as the fundamental driver for disclosure whilst controlling for other relevant variables. Implications for developing international regulation are presented with suggestions for further research.

Findings

Mandatory reporting is not seen as a significant influence to disclosure. Degree of risk, quality of audit firms, level of stock exchange and organisational visibility each impact on disclosure. The findings indicate that a mandatory disclosure approach is ineffective, partially explained by mimetic and normative forces and a balancing of agency-related costs and benefits. There is an inverse relationship between level of risk and risk reporting.

Research limitations/implications

Generalisation of the findings is limited due to the specific context of the extractive industry.

Practical implications

The paper seeks to inform the International Accounting Standards Board's (IASB) on-going consideration of risk reporting and also its extractive industries deliberations.

Originality/value

The paper provides original insight into the area of risk management with particular focus on risk specificity and quantitative metrics for risk profiling not previously tested. The paper introduces risk profiling as a variable in risk disclosure.

Details

Journal of Applied Accounting Research, vol. 22 no. 3
Type: Research Article
ISSN: 0967-5426

Keywords

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