Factors affecting financial instruments disclosure in emerging economies: the case of Jordan

Tahat, Yasean; Mardini, Ghassan H.; Power, David

doi:10.1504/aajfa.2017.085546

Cited by 7 publications

(10 citation statements)

References 12 publications

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“…Another gap is that limited corporate governance mechanisms have been used in the literature. For example, studies have concentrated on the board and ownership characteristics (Abdul Rahman and Hamdan 2017;Al-Akra et al 2010;Alanezi and Albuloushi 2011;Alfraih and Almutawa 2017;Ebrahim and Fattah 2015), audit committee and ownership characteristics (Alanezi et al 2012), board and audit committee characteristics (Adznan and Nelson 2014;Al-Sartawi et al 2016), board characteristics (Alfraih 2016), and board, audit and ownership characteristics (Agyei-Mensah 2017;Juhmani 2017;Tahat et al 2017). The current study fills these gaps.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 86%

“…Similar results are confirmed by Agyei-Mensah (2017) in that the level of compliance with IFRS 7 of 30 Ghanaian firms were affected by board independence and institutional ownership. Tahat et al (2017) found that board independence and the existence of an audit committee have a positive impact on IFRS 7 compliance. Finally, Nahar et al (2020) found that board size, independence and the existence of risk committees increase levels of mandatory risk disclosure.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…In addition, the independence of directors can enhance, to some extent, the shareholders' confidence by increasing the transparency in corporate outputs (annual reports) and integrity in the preparation of such reports. This, in turn, enhances the quality of disclosure and the level of compliance with mandatory applicable standards requirements (Ebrahim and Fattah 2015;Mnif and Znazen 2020;Tahat et al 2017;Tauringana and Chithambo 2016). Several studies provided a significant positive correlation between both the degree of compliance with IFRS and the independence of the board (Agyei-Mensah 2017; Almaqtari 2019; Bagudo et al 2018;Juhmani 2017;Mnif and Znazen 2020;Tahat et al 2017;Tauringana and Chithambo 2016).…”

mentioning

confidence: 96%

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Does Governance Affect Compliance with IFRS 7?

Hussainey

Albitar

2021

JRFM

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Although there has been considerable research on the impact of corporate governance on corporate voluntary disclosure, empirical evidence on how governance affects compliance with mandatory disclosure requirements is limited. We contribute to governance and disclosure literature by examining the impact of corporate governance on compliance with IFRS 7 for the banking sector in Gulf Cooperation Council (GCC). We use a self-constructed disclosure index to measure compliance with IFRS 7. We use regression analyses to examine the impact of board characteristics, audit committee characteristics and ownership structure on compliance with IFRS 7. Using a sample of 335 bank-year observations for GCC listed banks over the period 2011–2017, we report evidence that corporate governance variables affect compliance with IFRS 7. However, the significance of these variables depends on the type of the regression model used. Our findings suggest that governance matters for mandatory disclosure requirements. So to improve the level of compliance, regulators, official authorities, and policymakers should intensify their efforts toward improving corporate governance codes, following up their implementation and enhancing the enforcement mechanisms.

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Section: Literature Review and Hypotheses Developmentmentioning

confidence: 86%

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

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confidence: 96%

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Does Governance Affect Compliance with IFRS 7?

Hussainey

Albitar

2021

JRFM

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“…An annual report was sent to four individuals (three academics and one accountant), and accordingly, a discussion took place regarding some items and amendments thereto. Moreover, criterion validity was checked through comparing the present index with another study's index, namely that of Tahat, Mardini, and Power (2017). A sample of six annual reports (one from each country from 2017) was scored with the two indices.…”

Section: Index Validitymentioning

confidence: 99%

Compliance with IFRS 7 by financial institutions: evidence from GCC

Hussainey

2020

Int J Discl Gov

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The purpose of this paper is to address the essential steps for constructing a compliance index. It answers the research question: 'What are the guidelines for constructing the compliance index with IFRS 7?' To conduct this study, an index is constructed based on the disclosure requirements of financial instruments (i.e. IFRS 7). The sample includes listed banks from the GCC countries that adopted IFRS mandatorily from 2011 to 2017. Further, a descriptive analysis is employed. The findings emphasise the significant role of the steps outlined in constructing the index. Despite the importance of all the steps mentioned (basic source, materiality, reliability, validity, and scoring), there are some forms that can be considered as alternatives for each other. Overall, clarifying these steps for constructing an index will no doubt increase the effectiveness of the tool used for measuring the compliance level. Consequently, future researchers can concentrate more on other types of requirement, such as measurement and presentation. They may also include non-financial sectors and give more attention to the other scoring methods mentioned in the study.The study contributes to the IASB by supporting their efforts towards improving disclosure, especially in mandatory cases. It also supports all initiatives and efforts of policy makers, government institutions, and formal associations. The study presents illustrative steps to establish an index under the basic requirements (narrative study). Moreover, it provides a new index to measure cross-country compliance with IFRS 7.

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“…Moreover, emerging countries may face issues with compliance with financial instruments standards (Tahat, Mardini and Power, 2017).…”

Section: Introductionmentioning

confidence: 99%

Why do firms invest in accounts receivable? An empirical investigation of the Malaysian manufacturing sector

Paul

Guermat

Devi³

2018

JAEE

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The purpose of this paper is to investigate the factors that influence Malaysian manufacturing sector investment in accounts receivable, an asset seen by many as one of the riskiest in any company's balance sheet. We test several theories, related to accounts receivable, using a cross-section of 262 listed manufacturing firms over a period of five years (2007)(2008)(2009)(2010)(2011). Both fixed and random effect approaches are considered to deal with potential heterogeneity across firms. Our results show that the absolute level of accounts receivable is almost exclusively explained by size. However, the ratio of accounts receivable to assets is influenced by firm size, short-term finance, sales growth, and collateral. Profit, liquidity and gross margin have no role in affecting the decision to grant trade credit to customers. Some of our results are mostly inconsistent with previous studies. Size and short-term finance have a negative, rather than a positive, impact. Liquidity and gross margin have no, rather than a positive, effect. Profit and sales growth are expected to exhibit a U-shaped relationship with investment in accounts receivable. We found, however, that the former is insignificant while the latter is strictly increasing. The only factor found to be consistent with prior studies, in developed counties, is collateral. Our findings have important implications for policy makers in Malaysia and other emerging economies, especially in the light of the forthcoming International Financial Reporting Standard 9.3

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Factors affecting financial instruments disclosure in emerging economies: the case of Jordan

Cited by 7 publications

References 12 publications

Does Governance Affect Compliance with IFRS 7?

Does Governance Affect Compliance with IFRS 7?

Compliance with IFRS 7 by financial institutions: evidence from GCC

Why do firms invest in accounts receivable? An empirical investigation of the Malaysian manufacturing sector

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