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Determinants of risk disclosure compliance in Malawi: a mixed-method approach

Determinants of risk disclosure compliance in Malawi: a mixed-method approach
Determinants of risk disclosure compliance in Malawi: a mixed-method approach
Purpose
– The purpose of this paper is to investigate compliance with risk disclosure requirements under International Financial Reporting Standard (IFRS) 7 by Malawian Stock Exchange-listed companies over a three-year period. Specifically, the paper examines the extent and determinants of risk disclosure compliance with IFRS 7.

Design/methodology/approach
– The study uses a mixed-method approach. The quantitative approach employs the research index methodology and uses panel data regression analysis to examine the relationship between proportion of non-executive directors (NEDs), size, gearing and profitability and the extent of risk disclosure compliance. The results of the panel data regression analysis are triangulated by the qualitative research approach in the form of personal interviews with company managers.

Findings
– The results indicate that over the three years, the extent of compliance with IFRS 7 is, on average, 40 per cent which is very low. The regression results suggest that NEDs, size and gearing are significantly and positively associated with the extent of risk disclosure compliance under IFRS 7. The results of qualitative approach are mixed since some support and whilst others contradict the regression results.

Research limitations/implications
– The sample size is very small which may affect the generalisability of the study.

Originality/value
– The use of a mixed-methods approach to examine the determinants of risk disclosure compliance provides additional insights not provided in prior studies. The contradicting results suggest that more research using the mixed approach is required to provide more robust evidence of the determinants of risk disclosure compliance.
2042-1168
111-137
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Chithambo, Lyton
773cbe33-07d5-4c33-8ed9-3ffea26b7286
Tauringana, Venancio
27634458-b041-4bc1-94da-3e031d777e4f
Chithambo, Lyton
773cbe33-07d5-4c33-8ed9-3ffea26b7286

Tauringana, Venancio and Chithambo, Lyton (2016) Determinants of risk disclosure compliance in Malawi: a mixed-method approach. Journal of Accounting in Emerging Economies, 6 (2), 111-137. (doi:10.1108/JAEE-03-2014-0015).

Record type: Article

Abstract

Purpose
– The purpose of this paper is to investigate compliance with risk disclosure requirements under International Financial Reporting Standard (IFRS) 7 by Malawian Stock Exchange-listed companies over a three-year period. Specifically, the paper examines the extent and determinants of risk disclosure compliance with IFRS 7.

Design/methodology/approach
– The study uses a mixed-method approach. The quantitative approach employs the research index methodology and uses panel data regression analysis to examine the relationship between proportion of non-executive directors (NEDs), size, gearing and profitability and the extent of risk disclosure compliance. The results of the panel data regression analysis are triangulated by the qualitative research approach in the form of personal interviews with company managers.

Findings
– The results indicate that over the three years, the extent of compliance with IFRS 7 is, on average, 40 per cent which is very low. The regression results suggest that NEDs, size and gearing are significantly and positively associated with the extent of risk disclosure compliance under IFRS 7. The results of qualitative approach are mixed since some support and whilst others contradict the regression results.

Research limitations/implications
– The sample size is very small which may affect the generalisability of the study.

Originality/value
– The use of a mixed-methods approach to examine the determinants of risk disclosure compliance provides additional insights not provided in prior studies. The contradicting results suggest that more research using the mixed approach is required to provide more robust evidence of the determinants of risk disclosure compliance.

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More information

Accepted/In Press date: 30 March 2014
Published date: 2016
Organisations: Southampton Business School

Identifiers

Local EPrints ID: 398235
URI: http://eprints.soton.ac.uk/id/eprint/398235
ISSN: 2042-1168
PURE UUID: 2e4c3655-69e8-4328-aa83-0b5fa689f6bb
ORCID for Venancio Tauringana: ORCID iD orcid.org/0000-0002-1433-324X

Catalogue record

Date deposited: 20 Jul 2016 16:44
Last modified: 15 Mar 2024 03:31

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Contributors

Author: Lyton Chithambo

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