Search results

1 – 10 of 187
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.

1314

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

Article
Publication date: 17 January 2023

Engy ELsayed Abdelhak, Khaled Hussainey and Khaldoon Albitar

This study aims to examine the impact of internal corporate governance and audit quality on the level of COVID-19 disclosure in Egypt.

Abstract

Purpose

This study aims to examine the impact of internal corporate governance and audit quality on the level of COVID-19 disclosure in Egypt.

Design/methodology/approach

The authors use manual content analysis to measure levels of COVID-19 disclosure in the narrative sections of annual reports. The authors analyze all companies listed on the Egyptian Stock Exchange over 2020–2021. The authors use different regression models to test the research hypotheses.

Findings

The analysis adds to the literature in two crucial respects. First, it provides a measure for COVID-19 disclosure in Egypt. Second, it provides evidence that governance mechanisms (board diversity, audit committee [AC] independence), auditor type and audit opinion affect the level of COVID-19 disclosure. The higher level of COVID-19 disclosure is associated with firms with more female directors on the board, being audited by one of the big four audit firms and receiving standard clean audit opinion. While the inexistence of an AC and more executives on the AC negatively affect COVID-19 disclosure levels.

Originality/value

To the best of the authors’ knowledge, it is the only paper that examines COVID-19 disclosure in the Egyptian context. It is also the first paper that provides evidence on the impact of internal governance and audit quality on COVID-19 disclosure.

Details

International Journal of Accounting & Information Management, vol. 31 no. 1
Type: Research Article
ISSN: 1834-7649

Keywords

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.

2057

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

Keywords

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.

1181

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

Keywords

Article
Publication date: 7 November 2023

Hidaya Al Lawati, Khaled Hussainey and Roza Sagitova

This study aims to examine the impact of a firm’s financial performance on forward-looking disclosure (FLD) tone and assess whether managers are engaging in impression management…

Abstract

Purpose

This study aims to examine the impact of a firm’s financial performance on forward-looking disclosure (FLD) tone and assess whether managers are engaging in impression management or providing truthful explanations when their companies have good or poor performance.

Design/methodology/approach

This study used the content analysis method to measure the tone of FLD in the chairman’s statements of Omani financial institutions for the period 2014–2018. Regression analysis is then used to test the research hypotheses.

Findings

The authors found that good-performing firms are disclosing more good news, whereas poor-performing firms disclose more bad news. The results provided evidence that managers in Oman are providing truthful explanations in their narratives.

Practical implications

This study offered interesting policy and practical implications for policymakers, managers and stakeholders. This paper provided insights to policymakers regarding the FLD tone practices used in the chairman’s reports in Oman. Policymakers should be aware of the importance of the chairman’s reports in the eye of multiple stakeholders and, therefore, need to set guidelines on the type and quality of non-financial voluntary information that should be disclosed in such reports in the context of emerging economies. For academics, evidence has been provided by this study’s results regarding the impact of corporate performance on disclosure tone.

Originality/value

This study offered a novel contribution to disclosure studies by being the first to examine the performance-disclosure narrative tone relation, in the context of Oman.

Details

International Journal of Accounting & Information Management, vol. 31 no. 5
Type: Research Article
ISSN: 1834-7649

Keywords

Article
Publication date: 24 May 2023

Hidaya Al Lawati, Khaled Hussainey and Roza Sagitova

This study aims to examine whether, and which type of, busy audit committee (AC) directors affect the quality and quantity of forward-looking disclosure (FLD).

Abstract

Purpose

This study aims to examine whether, and which type of, busy audit committee (AC) directors affect the quality and quantity of forward-looking disclosure (FLD).

Design/methodology/approach

The authors use content analysis to measure the quality and quantity of FLD. The authors use a sample of Omani financial institutions listed on the Muscat Securities Market for the period 2014–2018.

Findings

The authors find that overlapped AC chairs and total overlapped AC directors negatively (positively) affect disclosure quantity (quality). The authors also find that overlapped AC directors with financial expertise and those with multiple directorships positively affect disclosure quantity and quality.

Originality/value

This study offers new insights to policymakers (and managers) as it informs them about the benefits of overlapping AC directorship. It suggests that corporate governance codes should not limit overlapped AC direcotorship.

Article
Publication date: 8 March 2022

Husam Ananzeh, Hashem Alshurafat, Abdullah Bugshan and Khaled Hussainey

This paper aims to examine the impact of corporate governance mechanisms on forward-looking corporate social responsibility (CSR) disclosure (FCSRD).

Abstract

Purpose

This paper aims to examine the impact of corporate governance mechanisms on forward-looking corporate social responsibility (CSR) disclosure (FCSRD).

Design/methodology/approach

The authors use the manual content analysis to measure FCSRD for a sample of 94 companies listed on the Amman Stock Exchange from 2010 to 2016. Data on companies' FCSRD are manually collected from annual reports. The authors also use regression analyses to test the research hypotheses.

Findings

The authors find that board size positively affects FCSRD, while CEO duality and family ownership negatively impact FCSRD.

Originality/value

To the best of the authors’ knowledge, this is the first evidence of how governance mechanisms affect FCSR information in corporate annual reports in a developing country.

Details

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

Keywords

Article
Publication date: 15 March 2022

Mahmoud Elmarzouky, Khaled Hussainey, Tarek Abdelfattah and Atm Enayet Karim

This paper aims to provide unique interdisciplinary research evidence between the risk information disclosed by auditors and the risk information disclosed by corporate managers…

1197

Abstract

Purpose

This paper aims to provide unique interdisciplinary research evidence between the risk information disclosed by auditors and the risk information disclosed by corporate managers. In particular, it investigates the association between the level of risk information disclosed by auditors (key audit matters [KAMs]) and the level of corporate narrative risk disclosure.

Design/methodology/approach

The study sample consists of the UK FTSE all-share non-financial firms across six financial years. The authors use a computer-aided textual analysis, and the authors use a bag of words to score the sample annual reports.

Findings

The results suggest that KAMs and corporate narrative risk disclosure levels vary across the industries. The authors found a significant positive association between the risk information disclosed by auditors and the risk information disclosed by corporate managers. Also, the authors found that FTSE 100 firms exhibit higher significance between the ongoing concern and the level of narrative risk disclosure.

Practical implications

The study approach helps assess the level of management risk reporting behaviour due to the new auditor risk reporting standards. This helps to emphasise how auditors and companies engage and communicate risk-related information to stakeholders. Standard setters should suggest a more detailed reporting framework to protect the shareholders. The unique findings are incredibly beneficial to the regulators, standard setters, investors, creditors, suppliers, customers, decision makers and academics.

Originality/value

This paper provides a shred of extraordinary evidence of the impact of auditor risk reporting and management risk reporting. To the best of the authors’ knowledge, no study has yet investigated the corporate narrative disclosure after the new audit standards ISA 700 and ISA 701.

Details

International Journal of Accounting & Information Management, vol. 30 no. 2
Type: Research Article
ISSN: 1834-7649

Keywords

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 (AAOIFI…

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

Keywords

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 directors…

3928

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

1 – 10 of 187