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Corporate boards, ownership structures and corporate disclosures: evidence from a developing country

Corporate boards, ownership structures and corporate disclosures: evidence from a developing country
Corporate boards, ownership structures and corporate disclosures: evidence from a developing country
Purpose: this paper investigates the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and voluntary disclosure behaviour in annual reports of Libyan firms.

Design/methodology/approach: multivariate regression techniques are used to estimate the effect of corporate board and ownership structures on mandatory and voluntary disclosures of a sample of Libyan firms between 2006 and 2010.

Findings: first, we find that board size, board composition, the frequency of board meetings and the presence of an audit committee have an impact on the level of corporate disclosure. Second, this study finds an evidence that director ownership, foreign ownership, government ownership and institutional ownership have a non-linear effect on the level of corporate disclosure. Finally, we find that firm age, liquidity, listing status, industry type and auditor type are positively associated with the level of corporate disclosure.

Limitation: future research could investigate disclosure practices using other channels of corporate disclosure, such as corporate websites. Useful insights may be offered also by future studies by conducting in-depth interviews with corporate managers, directors and owners regarding these issues.
Implication: Investors may also rely on such corporate governance characteristics to shape expectations about voluntary and/or mandatory information disclosure.

Originality/value: existing disclosure studies have mainly examined governance and voluntary disclosure relationship in non-listed firms. Our study, therefore, extends, as well as contributes to the existing literature by the examining the governance-disclosure nexus relating to both mandatory and voluntary disclosures in both listed and non-listed firms.

Keywords: corporate governance; Board and ownership structures; Corporate disclosure behaviour; Multi-theoretical perspective.

Paper type: research paper
Corporate governance;, Corporate governance; Board and ownership structures, Corporate disclosure behaviour , Multi-theoretical perspective.
Abdou, Hussein A.
c5679c57-2de9-452f-8434-1a0452563e0a
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Avison, Lynn
6b7fda2d-0f19-4dc3-8c60-5b611ea2378e
Abdou, Hussein A.
c5679c57-2de9-452f-8434-1a0452563e0a
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Avison, Lynn
6b7fda2d-0f19-4dc3-8c60-5b611ea2378e

Abdou, Hussein A., Ntim, Collins and Avison, Lynn (2017) Corporate boards, ownership structures and corporate disclosures: evidence from a developing country Journal of Applied Accounting Research (doi:10.1108/JAAR-01-2016-0001).

Record type: Article

Abstract

Purpose: this paper investigates the effect of corporate board attributes, ownership structure and firm-level characteristics on both corporate mandatory and voluntary disclosure behaviour in annual reports of Libyan firms.

Design/methodology/approach: multivariate regression techniques are used to estimate the effect of corporate board and ownership structures on mandatory and voluntary disclosures of a sample of Libyan firms between 2006 and 2010.

Findings: first, we find that board size, board composition, the frequency of board meetings and the presence of an audit committee have an impact on the level of corporate disclosure. Second, this study finds an evidence that director ownership, foreign ownership, government ownership and institutional ownership have a non-linear effect on the level of corporate disclosure. Finally, we find that firm age, liquidity, listing status, industry type and auditor type are positively associated with the level of corporate disclosure.

Limitation: future research could investigate disclosure practices using other channels of corporate disclosure, such as corporate websites. Useful insights may be offered also by future studies by conducting in-depth interviews with corporate managers, directors and owners regarding these issues.
Implication: Investors may also rely on such corporate governance characteristics to shape expectations about voluntary and/or mandatory information disclosure.

Originality/value: existing disclosure studies have mainly examined governance and voluntary disclosure relationship in non-listed firms. Our study, therefore, extends, as well as contributes to the existing literature by the examining the governance-disclosure nexus relating to both mandatory and voluntary disclosures in both listed and non-listed firms.

Keywords: corporate governance; Board and ownership structures; Corporate disclosure behaviour; Multi-theoretical perspective.

Paper type: research paper

PDF JAAR - Accepted Manuscript
Restricted to Repository staff only until 6 August 2019.

More information

Accepted/In Press date: 6 August 2017
e-pub ahead of print date: 6 August 2017
Keywords: Corporate governance;, Corporate governance; Board and ownership structures, Corporate disclosure behaviour , Multi-theoretical perspective.

Identifiers

Local EPrints ID: 412874
URI: http://eprints.soton.ac.uk/id/eprint/412874
PURE UUID: cfe338e8-f8ae-4101-b00d-772275b53698

Catalogue record

Date deposited: 07 Aug 2017 13:07
Last modified: 07 Aug 2017 13:42

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Contributors

Author: Hussein A. Abdou
Author: Collins Ntim
Author: Lynn Avison

University divisions

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