Research Article

FIRM ATTRIBUTES AND ACCOUNTING DISCLOSURE: A SYNTHESIS ANALYSIS

1 Department of Accounting, Ahmadu Bello University, Zaria
2 Department of Accounting, Kaduna State University (KASU)-Nigeria
3 Ahmadu Bello University Zaria
* Corresponding author: ibrash78@gmail.com
Published: Dec, 2015
Pages: 60-90
Views: 24
Downloads: 56

Abstract

Accounting disclosure with its determinants have been challenged by many stakeholders over the years. Some users of financial information have insatiable appetite for more information to be disclosed voluntarily. Others observed that disclosure should be on material information rather than disclosing uninformative information which led to information overloaded. Large firms have strong motives to disclose their activities when compared with smaller ones. The extent of disclosure within these published reports varies from company to company and also from country to country. Consequently, this study synthesizes firm’s attributes and accounting disclosure from 1960 to 2015. Also studies failed to account for the impact of globalization where Information Technology and Forensic Accounting as explanatory variables that are possible to derive information disclosure. The study recommends among others that future researchers should consider which explanatory variables with more positive relationship in terms of information disclosure while preparing their reports. Also, it is recommended that, future researchers should include Information Technology and Forensic Accounting as firms attributes. This will enable them to see their impact via accounting disclosure.

References

  1. Abbott, L. J., Parker, S., & Peters, G. F. (2006). Earnings management, litigation risk, and asymmetric audit fee responses: Auditing. A Journal of Practice and Theory 25(1), 85–98.
  2. Adams CA, Hill W, Roberts C. B., (1998) Corporate Social Reporting Practices in Western Europe: Legitimating Corporate Behavior. Br. Account. Rev., 30: 1-21
  3. Ahmed K, & John K. C., (1999). Associations between Corporate Characteristics and Disclosure Levels in Annual Reports: A Meta- Analysis. Br. Account. Rev., 31: 35-61
  4. Ahmed, K. & Courtis, J. (1999). Association between Corporate Characteristics and Disclosure Levels in Annual Reports: A meta-analysis, The British Accounting Review, (31), 35- 61.
  5. Akhtaruddin, M, Hossain, M.A, Hossain, M. & Yao, L., (2009). Corporate Governance and Voluntary Disclosure in Corporate Annual Reports of Malaysian listed firms.
  6. Akhtaruddin, M. (2005). Corporate mandatory disclosure practices in Bangladesh. International Journal of Accounting, 40, 399- 422.
  7. Aksu, M. & Kosedag, A. (2006). Transparency and disclosure scores and their determinants in the Istanbul Stock Exchange. Corporate Governance, 14(4): 277-296. http://dx.doi.org/10.1111/j.1467-8683.2006.00507.x
  8. Albitar, K., (2015). Firm Characteristics, Governance Attributes and Corporate Voluntary Disclosure: A Study of Jordanian Listed Companies, International Business Research, Canadian Center of Science and Education, 8 (3), ISSN 1913-9004 E-ISSN 1913-9012
  9. Albertoe D. (2010): The Relationship between Voluntary Reporting on CorporateSustainability and Financial Performance: An Empirical Study of Companies in the oil/gas, Mining/resources, and Chemical Industry on the U.S. Stock Market, Unpublished MSc Thesis Submitted to the Department of Business, Accounting, Auditing and Control, Erasmus School of Economics, Erasmus University, Rotterdam, USA.
  10. Allen, F., (2004). Liquidity and Financial Stability: An introduction, Journal of theEuropean Economic Association, 2(6), 925-928
  11. Alford, A., Jones, J., Leftwich, R., & Zmijewski, M. (1993). The relative informativeness of accounting disclosures in different countries. Journal of Accounting Research, 31, 183−223.
  12. Alfraih, M. M. & Almutawa, A. M., (2014). Firm-Specific Characteristics and Corporate Financial Disclosure: Evidence from an Emerging Market, the International Journal of Accounting and Taxation, 2(3), 55-78, ISSN 2372-4978
  13. Ali, M. J., Ahmed, K., & Henry, D. (2004). Disclosure compliance with national accounting standards by listed companies in South Asia. Accounting and Business Research, 34 (3), 183-199.
  14. Aljifri, K., Alzarouni, A., Ng, C., & Tahir, M. I. (2015). The Association Between Firm Characteristics and Corporate Financial Disclosures: Evidence from UAE Companies. The International Journal of Business and Finance Research, 8(2), 101- 123.
  15. Al-Shammari, B. A. (2005). Compliance with IAS by listed companies in the Gulf co-operation member states: An empirical study. Unpublished Doctoral Dissertation, University of Western Australia, Perth.
  16. Apostolos K.A, & Konstantinos A.N., (2009). Voluntary accounting disclosure and corporate governance: evidence from Greek listed firms. Int. J. Account. Finance, 1(4): 395 - 414
  17. Aripin N, Tower G, & Taylor G., (2008). The determinants of financial ratio disclosures and quality: Australian evidence. Accounting and Finance Association of Australia and New Zealand (AFAANZ). Annual Conference Sydney, Australia 6-8 July.
  18. Ayila, R. U., (2015). Association between corporate attributes and extent of compliance with accounting standards disclosures by commercialized federal government enterprises in Nigeria, unpublished PhD thesis in the Department of Business Administration, Faculty of Management Sciences, University of Jos.
  19. Ball, R., Kothari, S., & Robin, A. (2000). The effect of international institutional factors on properties of accounting earnings. Journal of Accounting and Economics, 29(1), 1−51.
  20. Belkaoui, A., & Kahl, A. (1978). Corporate financial disclosure in Canada. Research Monograph, No. 1, Vancouver: Canadian Certified General Accountants Association.
  21. Barako, D. G, Hancock P, & Izan H.Y., (2006). Factors influencing voluntary corporate disclosure by Kenyan companies, Corporate Governance. Int. Rev., 14 (2): 107-125.
  22. Barako, D. G. Hancock P., and Izan H. Y (2006): Relationship between Corporate Governance Attributes and Voluntary Disclosures in Annual Reports: the Kenyan
  23. Barrett, M. E. (1975), Financial reporting practices: Disclosure and comprehensiveness in an International Setting, Journal of Accounting Research, 14 (1), 10-26.
  24. Bhat G. (2008). Impact of Disclosure and Corporate Governance on the Association between fair value gains and losses and stock returns in the commercial banking industry, 6, retrieved fromhttp://webdocs.stern.nyu.edu/old_web/emplibrary/impactofdisclosure.pdfon
  25. Bujaki M., (2002). Corporate governance: Factors Influencing Voluntary Disclosure by Publicly Traded Canadian Firms. Can. Account. Perspect., 1: 105-139.
  26. Bushman, R.J., Piotroski., & Smith, A. (2001). What determines corporate transparency? Published in the Journal of accounting research 42 (2), 207-252, 2004
  27. Buzby, S. L. (1975). Company size, listed versus unlisted stocks, and the extent of financial disclosure. Journal of Accounting Research, 13 (1), 16-37.
  28. Buzby, S. L. (1974). Selected items of information and their disclosure in annual reports, The Accounting Review, 43, 423-35.
  29. Camfferman, K., & Cooke, T.E. (2002). An analysis of disclosure in the annual reports of United Kingdom and Dutch companies. Journal of International Accounting Research 1, 3-30.
  30. Cerf, A. R. (1961). Corporate reporting and investment decisions, Berkeley, university of California Press.
  31. Chalmers, I., Larry, V. H & Harris, C., (2002). A Brief History of Research Synthesis, Evaluation and the health professions 25 (1), 12-37.
  32. Chau, G. & Gray, S.J. (2010). Family ownership, board independence and voluntary disclosure: Evidence from Hong Kong. Journal of International Accounting, Auditing and Taxation, 19(2): 93-109. http://dx.doi.org/10.1016/j.intaccaudtax.2010.07.002
  33. Cheng, E.C.M. & Courtenay, S.M. (2006). Board composition, regulatory regime and voluntary disclosure. The International Journal of Accounting, 41(3): 262-289. http://dx.doi.org/10.1016/j.intacc.2006.07.001
  34. Chow, C. W. & Wong-Boren, A. (1987). Voluntary financial disclosure by Mexican corporations. The Accounting Review, 62 (3), 533-541.
  35. Chung, S. K., (2015). Firm Risk and Levergae-Based Business Cycle, Boston College, Kiel Institute for the World Economy
  36. Cooke, T.E. (1989). Voluntary corporate disclosure by Swedish companies. Journal of International Financial Management and Accounting, 1(2): 171-195. http://dx.doi.org/10.1111/j.1467-646X.1989.tb00009.x
  37. Courtis, J. K. (1976). Relationship between timeliness in corporate reporting and corporate attributes. Accounting and Business Research, 45-56.
  38. Da-Silva W.M, & Christensen T. E., (2004). Determinants of Voluntary Disclosure of Financial Information on the Internet by Brazilian Firms, Social Science Research Network.
  39. Dubbink, W., Graafland, J., & Liedekerke, L. (2008). Corporate social responsibility, transparency and the role of intermediate organization. Journal of Business Ethics, 82 (2), 256-287.
  40. Dulacha G. B., (2007).Determinants of voluntary disclosure in Kenyan companies annual reports. Afr. J. Bus. Manage., 1(5): 113-128.
  41. Eng, L.L. & Mak, Y.T. (2003). Corporate governance and voluntary disclosure. Journal of Accounting and Public Policy, 22(4): 325-345. http://dx.doi.org/10.1016/S0278-4254(03)00037-1
  42. Ferguson, M. J., Lam, K.C.K. & Lee, G.M. (2002). Voluntary disclosure by state owned enterprises listed on the stock exchange of Hong Kong, Journal of International Financial Management and Accounting, 13 (2), 125-152.
  43. Firth, M. (1979). The effects of size, stock market listings and auditors on voluntary disclosure in corporate annual reports. Accounting Business Research. 9(36), 29-42.
  44. Fremgen, J. M. (1963). Corporate reporting and investment decisions by A.R. Cerf. Book review in The Journal of Business, 36 (4), 465-467.
  45. Gul, F.A. & Leung, S. (2004). Board leadership, outside directors' expertise and voluntary corporate disclosures. Journal of Accounting and Public Policy, 23(5): 351-379. http://dx.doi.org/10.1016/j.jaccpubpol.2004.07.001
  46. Haniffa, R.M. & Cooke, T.E. (2002). Culture, corporate governance and disclosure in Malaysian corporations. Abacus, 38(3): 317-349. http://dx.doi.org/10.1111/1467-6281.00112
  47. Haward, U., (1961). Introduction to Business Finance, McGraw Hill, New York
  48. Ho W., (2001). A study of corporate disclosure practices and effectiveness in Hong Kong. J. Int. Financ. Manage. Account., 12(1): 75-101.
  49. Ho, S.S.M. & Wong, K.S. (2001). A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing and Taxation, 10(2): 139-156. http://dx.doi.org/10.1016/S1061-9518(01)00041-6
  50. Hossain M, Islam K, & Andrew J. (2006).Corporate Social and Environmental Disclosure in Developing Countries: Evidence from Bangladesh, Http://ro.uow.edu.au/ commpapers re/179
  51. Hossain, M. & Hammami, H. (2009). Voluntary disclosure in the annual reports of an emerging country: The case of Qatar. Advances in Accounting, Incorporating Advances in International Accounting, 25(2): 255-265.
  52. Hossain, M., Perera, M.H.B. & Abdul rahman, R. (1995). Voluntary disclosure in the annual reports of New Zealand companies. Journal of International Financial Management and Accounting, 6(1): 69-87. http://dx.doi.org/10.1111/j.1467-646X.1995.tb00050.x
  53. Hossain, M., Berera, M. & Rahman, A. (1995), Voluntary Disclosure in the Annual Reports of New Zealand Companies, Journal of International Financial Management and Accounting, 6, 1: 69-87.
  54. Huafang, X. & Jianguo, Y. (2007). Ownership structure, board composition and corporate voluntary disclosure. Managerial Auditing Journal, 22(6): 604-619. http://dx.doi.org/10.1108/02686900710759406
  55. Ibrahim, L., (2014). Accounting Information Disclosure by selected Nigerian Deposit Money banks (DMBs), unpublished M.Sc. Dissertation in the Department of Accounting, Faculty of Management Seinces, Usmanu Danfodio University, Sokoto.
  56. Inchausti, B.G. (1997). The influence of company characteristics and accounting regulation on information disclosed by Spanish firms. The European Accounting Review, 6(1): 45-68. http://dx.doi.org/10.1080/096381897336863
  57. Journal of Applied Management Accounting Research, 7 (1).
  58. Karim A. K.M & Ahmed J. (2005). Determinants of IAS disclosure compliance in emerging economies: Evidence from exchange listed companies in Bangladesh, Centre for Accounting, Governance and Taxation Research Victoria university School of Accounting and Commercial Law, Wellington, New Zealand, http://www.victoria.ac.nz/sacl/cagtr/working-papers/WP21.pdf
  59. Karim, A. K. M.W., (1996).The association between corporate attributes and the extent of corporate disclosure. J. Bus. Stud., Univ. Dhaka, 17(2), 89-124
  60. Khodadadi, V., Khazami, S. & Aflatooni, A., (2010). The effect of voluntary corporate governance structure on the extent of voluntary disclosure in Iran. Business Intelligence Journal, 3 (2), 151- 164.
  61. Lang, M., & Lundholm, R. (1993). Cross-sectional determinants of analyst ratings of corporate disclosures. Journal of Accounting Research, 31, 246−271.
  62. Latidirs, G, (2008). Accounting disclosure and firms' financial attributes: Evidence from the UK stock market, International Review of Financial Analysis, University of Thessaly, Department of Economics, 43 Korai Street, Volos 38 333, Greece, 17, 219-240.
  63. Leadbeater, C. (2000). New Measures for the New Economy, Centre for Business Performance, the Institute of Chartered Accountants in England and Wales.
  64. Marston, C. L. & Shrives P. J. (1991). The use of disclosure indices in accounting research. British Accounting Review, 23, 195-210.
  65. McNally, G. M., Eng, L. H. & Hasseldine, C. R. (1982). Corporate financial reporting in New Zealand: An analysis of user preferences, corporate characteristics and disclosure practices for discretionary information', Accounting and Business Research,13 (Winter), 11-20.
  66. Meek, G. C., Roberts, B. & Gray, J. (1995). Factors influencing voluntary annual report disclosures by U.S., U.K. and Continental European multinational corporations. Journal of International Business Studies, 26 (3), 555-572.
  67. Nandi, S., & Ghosh, S. K. (2012). Corporate Governance attributes firms characteristics and the level of corporate disclosure: Evidence from the Indian Listed Firms. Decision Science Letters, 2, 45-58.
  68. Naser, K., Al-Khatib, K. & Karbhari, R. (2002). Empirical evidence on the depth of corporate information disclosure in developing countries: The case of Jordan, International Journal of Commerce and Management, 12 (3 & 4), 122-155.
  69. ndatory%20Disclosure.pdf, viewed on 27th August, 2011.
  70. New D, Warsame H, & Pedwell K (1998). Managing Public Impressions: Environmental Disclosures in Annual Reports. Account. Organ. Soc., 23(3): 265-282
  71. Owusu-Ansah, S. (1998). The impact of corporate attributes on the extent of mandatory disclosure and reporting by listed companies in Zimbabwe. The International Journal of Accounting, 33 (5), 605-631.
  72. Price water house coopers, (2009). Lehman Brothers' Bankruptcy: Lessons learned for the survivors, informational presentation for our clients, http://www.rediff.com/money/2008/sep/16/lehman,http://money.cnn.com/galleries/2009/fortune/0905/gallaery.largest_bankruptcies.fortune/2.html, August.
  73. Robert, L. L. & Schepers, D. H., (2009). Beyond Transparency: Information Overlaod and a Model for intelligibility, Center for Business Ethics at Bentley College. Published by Blackwell Publishing, 350 Main Street, Malden, MA 02148, USA, and 9600 Garsington Road, Oxford OX4 2DQ, UK, Business and Society Review 114(3), 365–391
  74. Samir M, James E. G, & Fornaro M (2003). An Empirical Investigation of Corporate Voluntary Disclosure of Management's Responsibilities for Financial Reporting, Lubin School of Business Faculty Working Papers, Pace University.
  75. Sejjaaka S. (2004): A process based model for corporate mandatory disclosure, from ttp://www.cpa.org/A%20Process%20Based%20Model%20of%20Corporate%20Ma
  76. Sejjaaka, S. (2003). Corporate mandatory disclosure by financial institutions in Uganda, Unpublished Ph. D thesis submitted to Makerere University.
  77. Shamimul, H. M., Norman, O. & Zabid, H. S., (2015). Corporate Attributes and Market Capitalization: Evidence from Bangladesh, aestimatio, international journal of finance, DOI:10.5605/IEB.11.4, 92-105
  78. Shehata, N. F., Dahawy, K., & Ismail, T., (2014). The relationship between firm characteristics and mandatory disclosure level: when egyptian accounting standardswere first adopted, Journal of Accounting and Finance
  79. Das, B. C., Chowdhury, M. M., Rahman, M. H., & Dey, N. K., (2015). Liquidity Management and Profitabilityanalysis of private commercialbanks in Bangladesh, International Journal of Economics, commerce and Management, United Kingdom, 3(1), ISSN-2348 0386.
  80. Singhvi, S. S. & Desai, H.B. (1971). An empirical analysis of the quality of corporate financial disclosure. The Accounting Review, 46 (1), 129-138.
  81. Singhvi, S. S. (1968). Corporate disclosure through annual reports in the United States of America and India. The Journal of Finance, 23(3), 551-552.
  82. Souissi, M., & Khlif, H. (2012). Meta-analytic review of disclosure level and cost of equity capital. International Journal of Accounting and Information Management, 20(1), 49-62.
  83. Spero, L, L. (1979). The extent and causes of voluntary disclosure of financial information in three European capital markets. Doctoral Thesis, Havard University.
  84. Street, D. L. & Gray, S. J. (2001). Observance of International Accounting Standards: Factors explaining non-compliance. Association of Chartered Certified Accountants, Research Report 74, Retrieved May 1, 2007, available at http://www.accaglobal.com,the Istanbul Stock Exchange, 14(4): 277-296, http://dx.doi.org/10.1111/j.1467-8683.2006.00507.x
  85. Uyar, A. & Kilic, M. (2012a). The influence of firm characteristics on disclosure of financial ratios in annual reports of Turkish firms listed in the Istanbul Stock Exchange. International Journal of Accounting, Auditing and Performance Evaluation, 8(2): 137-fr156. http://dx.doi.org/10.1504/IJAAPE.2012.046603
  86. Umoren, A. O. (2009). Accounting disclosures and corporate attributes in Nigerian listed Companies. Unpublished PhD Thesis, Department of accounting, Covenant University, Ota, Ogun State.
  87. Wallace R. S. O, Naser K, & Mora A (1994). The relationship between the comprehensiveness of corporate annual reports and firm specific characteristics in Spain. Account. Bus. Res., 25 (97): 41-53
  88. Wallace, R. S. O & Naser, K. (1995). Firm-specific determinants of the comprehensiveness of mandatory disclosure in the corporate annual reports of firms listed on the Stock Exchange of Hong Kong. Journal of Accounting and Public Policy, 14, 311-368.
  89. Wallace, R. S. O. (1988). Corporate financial reporting in Nigeria. Accounting and Business Research, 18 (72), 352-362.
  90. Wallace, R. S. O. (1988b). Corporate financial reporting in Nigeria. Accounting and Business Research, 18 (72), 352-362.
  91. Watson, A., Shrives, P., & Marston, C. (2002). Voluntary disclosure of accounting ratios in the UK. The British Accounting Review, 34(4), 289-313.
  92. Yuen, D.C.Y., Liu, M., Zhang X. & Lu C. (2009). A case study of voluntary disclosure by Chinese enterprises. Asian Journal of Finance and Accounting, 1 (2).
  93. Zahn, B., Darren, T. R. & Andrew V. B., (2014). Attributes of Informative Disclosures, the Ohio State University, Fishaer College of Business, 2100 Neil Avenue, Colombs, OH 43210, October, van-uskirk_10@fisher.osu.edu.
How to Cite

Yusuf, I., Hassan, S. U., & Mamman, S. (2015). FIRM ATTRIBUTES AND ACCOUNTING DISCLOSURE: A SYNTHESIS ANALYSIS. Nigerian Journal of Accounting Research, 11(2), 60-90.

I. Yusuf, S. U. Hassan, and S. Mamman, "FIRM ATTRIBUTES AND ACCOUNTING DISCLOSURE: A SYNTHESIS ANALYSIS," Nigerian Journal of Accounting Research, vol. 11, no. 2, pp. 60-90, December 2015.

Share this article:
Facebook X / Twitter LinkedIn