قياس أثر القدرة الإدارية على جودة الإفصاح المحاسبي في الشرکات السعودية

Abstract

The study aimed to measure the impact of the managerial ability of the executives on the quality of accounting disclosure, using data of non-financial Saudi companies during the period from 2008 to 2018. Managerial ability was measured using the model of Demerjian et al. (2012) which employs data envelope analysis (DEA) method. The accounting disclosure contains three pillars are the financial reporting quality (measured by accruals quality), the timeliness (measured by the audit report lag and delayed filing with the Capital Market Authority of Saudi Arabia [CMA]), and the company information environment (measured by trading volume and information asymmetry).The study found that there is a similarity between the mean of managerial ability of executives in Saudi companies and the previous studies. With managerial ability of executives had a positive and significant relation with the accruals quality and trading volume, negative and significant with audit report lag and delayed filing with the Capital Market Authority of Saudi Arabia [CMA]), while it was positive and insignificant with no information asymmetry. This means that the managerial ability has contributed to improve the financial reporting quality and timeliness, but it has not contributed to the same extent in improving the information environment. The study recommended that to pay attention to developing the managerial ability of executives in Saudi companies to improve aspects of accounting disclosure.The results of this study contribute to providing a clearer insight on how the managerial ability affects the various aspects of Saudi companies' disclosure in light of the divergent opinions about the extent of the influence of specific characteristics of managers on the company's business results. These results also contribute to improving many of the applications that serve boards of directors, investors and policy makers.