Record Details

Risk Management Committee and Financial Instrument Disclosure

Asian Journal of Accounting and Governance

View Archive Info
 
 
Field Value
 
Title Risk Management Committee and Financial Instrument Disclosure
 
Creator Hassan, Mohamat Sabri
Mohd Salleh, Norman
Yatim, Puan
Che Abdul Rahman, Mara Ridhuan
 
Subject Financial instruments; disclosure quality; risk management committee; firm characteristics
 
Description In this paper, we empirically investigate the influence of several characteristics of firms on the extent to which Malaysian listed companies disclosed financial instruments during the voluntary and mandatory periods of MASB 24 (Financial Instruments: Disclosure and Presentation) Standard. Following prior studies, we predict that larger and more profitable firms are more likely to disclose more information on financial instruments. We also hypothesize that strong internal control mechanisms, such as the existence of a risk management committee and audit quality, also result in higher levels of disclosure. The sample consists of firms that were listed with the Main Board of Bursa Malaysia in 1999, 2000, 2002, and 2003. This study employs a multiple regression analysis over 484 firm-years. Our results indicate that, on average, the disclosure quality among Malaysian firms is low before the period of mandatory disclosure. However, the level of disclosure appears to increase immediately after the issuance of the MASB 24. We also find that the existence of a risk management committee, firm size and leverage are positively associated with the disclosure quality of financial instruments. Finally, in general, the results indicate that the implementation of financial instrument disclosure standards influence firms, to some extent, to provide high-quality reporting.
 
Publisher Penerbit UKM
 
Contributor —
 
Date 2014-06-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ejournal.ukm.my/ajac/article/view/6512
 
Source Asian Journal of Accounting and Governance; Vol 3 (2012); 13-28
2180-3838
 
Language eng
 
Relation http://ejournal.ukm.my/ajac/article/view/6512/2791
 
Rights Authors who publish with this journal agree to the following terms:Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).