Corporate Attributes and Corporate Disclosure Level of Listed Companies in Nigeria: A Post-IFRS Adoption Study

Abstract

This study examines the determinants of corporate disclosure level of listed companies in Nigeria.Specifically, the study investigates the relationship between two structure characteristics and corporate disclosure in Nigerian listed firms. The data used in the study were obtained from the annual reports of 60 companies listed on the Nigerian Stock Exchange from the various sectors of the Nigerian economy. The study covers the post International Financial Reporting Standards (IFRSs) adoption period of three years (2012 -2014). The structure characteristics (independent variables) are firm size and leverage. Corporate disclosure (dependent variable) was disaggregated into mandatory, voluntary and total disclosure. The data were analysed using both descriptive statistics and the Ordinary Least Squares (OLS) regression. Findings from the descriptive statistics reveal that contrary to prior findings, there is a steady improvement in mandatory disclosure by Nigerian companies since the country's adoption of IFRSs. However, voluntary disclosure still remains relatively low.Our empirical results show a significant positive association between firm size and mandatory disclosure. The results also reveal a significant negative relationship between leverage and mandatory disclosure. Both leverage and firm size showed a significant positive relationship with voluntary disclosure. The combined effect of leverage and firm size show a significant positive relationship with total disclosure. Based on these findings, we recommend that the Financial Reporting Council of Nigeria and other regulatory agencies should intensify efforts towards enforcement of companies' compliance with the requirements of IFRSs and other relevant statutory provisions.

Internet Financial Reporting Disclosure in the Saudi Listed Manufacturing Companies

“…The significance of this association varies between countries and between firms in a country. Although the Kingdom of Saudi Arabia has an emerging market, few studies have explored this issue (see for example: Alsaeed, 2006;Hossain and Hammami, 2009;Alturki, 2014). Therefore, the current study has examined the impact of firm profitability, size, leverage, and age on the level of IFRD in the SLMCs.…”

“…This variable often raises the following question: to what extent does a company rely on debt to finance its assets? The impact of leverage on the level of disclosures has been examined based on the agency theory (Watson et al, 2002;Alsaeed, 2006;Abdullah & Ku Ismail, 2008). The concerns associated with leverage are the risk implied by the debt and the agency costs a company will be prone to (Alsaeed, 2006).…”

“…The impact of leverage on the level of disclosures has been examined based on the agency theory (Watson et al, 2002;Alsaeed, 2006;Abdullah & Ku Ismail, 2008). The concerns associated with leverage are the risk implied by the debt and the agency costs a company will be prone to (Alsaeed, 2006). Based on this line of reasoning, a company is likely to make a high level of disclosures in order to decrease these agency costs and the information asymmetries between the company and its creditors (Inchausti, 1997;Uyar & Kilic, 2012a).…”

“…The literature reviewed has shown a mixed picture regarding the impact of leverage on the level of disclosure. Scholars such as Ho & Wong (2001), Aksu & Kosedag (2006), Alsaeed (2006), Huafang & Jianguo (2007), and provided empirical evidence for an insignificant link between leverage and disclosure. Meanwhile, Malone et al (1993), Hossain et al (1995), and Uyar and Kilic (2013) evidenced a positive significant link between these two variables.…”

Firm Performance and Corporate Disclosure Level of Listed Companies in Nigeria

“…Attempts at conceptualizing and measuring it have not yielded a universal approach for researchers (Modugu & Eboigbe, 2017). For instance, Abu-Nassar (1993) contends that a singular definition of disclosure is practically unattainable.…”