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Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries

Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries
Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries
Purpose – This paper investigates the level of compliance with, and disclosure of, corporate governance best practice recommendations, and the firm- and country-level factors that can explain discernible differences in the level of compliance with, and disclosure of, corporate governance best practice recommendations in a number of Middle Eastern and North African (MENA) countries.

Design/methodology/approach – We use the widely employed content analysis technique to examine the level of compliance with, and disclosure of, corporate governance best practice recommendations in a sample of listed corporations in MENA countries. In addition, we employ the ordinary least square multiple regression analysis technique to examine the firm- and country-level antecedents of the level of compliance with, and disclosure of, corporate governance best practice recommendations. The findings are generally robust to different types of firm- and country-level factors, alternative measures and potential endogeneity problems.

Findings – The findings of this study are two-fold. First, the level of voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations is low and differs substantially across firms. Second, our evidence suggests that firm- and country-level factors, including religiosity, national governance quality and macroeconomic factors have a positive and significant impact on voluntary compliance with, and disclosure of, corporate governance best practice recommendations.

Originality/value – To the best of our knowledge, this paper is the first to examine both the potential firm- and country-level factors affecting voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations within a neo-institutional theoretical perspective. The results of our study provide regulators and policy-makers with the impetus to encourage greater efforts towards pursuing reforms that seek to improve national governance quality, economic environment and positive religious practices.
Corporate governance disclosure, Firm and national governance quality, Religiosity, Macroeconomic factors, MENA countries, neo-institutional theory
0268-6902
558-585
Sarhan, Ahmed
c81ed023-28d0-4e5f-975c-a91f9695a163
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Sarhan, Ahmed
c81ed023-28d0-4e5f-975c-a91f9695a163
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b

Sarhan, Ahmed and Ntim, Collins (2018) Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries. Managerial Auditing Journal, 33 (6/7), 558-585. (doi:10.1108/MAJ-10-2017-1688).

Record type: Article

Abstract

Purpose – This paper investigates the level of compliance with, and disclosure of, corporate governance best practice recommendations, and the firm- and country-level factors that can explain discernible differences in the level of compliance with, and disclosure of, corporate governance best practice recommendations in a number of Middle Eastern and North African (MENA) countries.

Design/methodology/approach – We use the widely employed content analysis technique to examine the level of compliance with, and disclosure of, corporate governance best practice recommendations in a sample of listed corporations in MENA countries. In addition, we employ the ordinary least square multiple regression analysis technique to examine the firm- and country-level antecedents of the level of compliance with, and disclosure of, corporate governance best practice recommendations. The findings are generally robust to different types of firm- and country-level factors, alternative measures and potential endogeneity problems.

Findings – The findings of this study are two-fold. First, the level of voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations is low and differs substantially across firms. Second, our evidence suggests that firm- and country-level factors, including religiosity, national governance quality and macroeconomic factors have a positive and significant impact on voluntary compliance with, and disclosure of, corporate governance best practice recommendations.

Originality/value – To the best of our knowledge, this paper is the first to examine both the potential firm- and country-level factors affecting voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations within a neo-institutional theoretical perspective. The results of our study provide regulators and policy-makers with the impetus to encourage greater efforts towards pursuing reforms that seek to improve national governance quality, economic environment and positive religious practices.

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Accepted MAJ 23 June 2018 Full Manuscript - Accepted Manuscript
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More information

Accepted/In Press date: 23 June 2018
e-pub ahead of print date: 14 September 2018
Keywords: Corporate governance disclosure, Firm and national governance quality, Religiosity, Macroeconomic factors, MENA countries, neo-institutional theory

Identifiers

Local EPrints ID: 422003
URI: http://eprints.soton.ac.uk/id/eprint/422003
ISSN: 0268-6902
PURE UUID: 6d8d0835-79a4-40cb-80b6-673d27a230b1
ORCID for Collins Ntim: ORCID iD orcid.org/0000-0002-1042-4056

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Date deposited: 12 Jul 2018 16:31
Last modified: 15 Sep 2021 01:28

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Contributors

Author: Ahmed Sarhan
Author: Collins Ntim ORCID iD

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