Board attributes and voluntary disclosure in an emerging economy: evidence from Nigeria
Robert W. Odewale
Afro-Asian J. of Finance and Accounting, Vol. 10, No. 3 (2020) pp. 341 - 363
This study examines the effect of board attributes (board size, board composition and CEO duality) on the extent of voluntary disclosure using data for 237 firm-year observations from 75 firms listed on the Nigerian Stock Exchange from 2009 to 2012. The study constructs disclosure index score comprising 36 items. Using random-effects regression model, the result shows that CEO duality is negatively related to voluntary disclosure. This study also finds that board size and board composition do not have any significant relationship with voluntary disclosure. This study has implications for future researchers, regulators, and investors. Future researchers may find it interesting to examine board behaviour in order to understand the complexities of board operations as it affects their monitoring role. There is no evidence that the introduction of Corporate Governance Code by the Nigerian Securities and Exchange Commission has led to improvement in the voluntary disclosure made by listed companies. There is therefore the need for regulators to improve their enforcement and compliance mechanism at ensuring that listed companies comply with the disclosure requirements. It may also be appropriate that certain disclosures be made mandatory, since the management may not have the incentives to make such disclosures.
Tag: board size
Alignment or entrenchment? Evidence from cash holdings in Thailand
Alignment or entrenchment? Evidence from cash holdings in Thailand
Yordying Thanatawee
Afro-Asian J. of Finance and Accounting, Vol. 9, No. 3 (2019) pp. 291 - 308
This paper examines the relationship between managerial ownership and the cash holdings of non-financial firms in Thailand from 2011 to 2015. The results indicate that higher managerial ownership is associated with lower cash holdings, suggesting that managers of Thai firms do not hoard cash for private benefits. Therefore, the findings support the incentive-alignment hypothesis. In addition, the evidence indicates that board size has a negative impact on cash holdings, while board independence does not play a significant role. Furthermore, it is found that profitability, firm size, growth opportunities and cash flow have positive effects on cash holdings, whereas leverage has a nonlinear impact on cash reserves.
Corporate governance, disclosure and firm performance: empirical findings from Malaysia
Corporate governance, disclosure and firm performance: empirical findings from Malaysia
Nik Mohamad Zaki Nik Salleh; Chong Lee-Lee; Prem Lal Joshi; Shaista Wasiuzamman
Afro-Asian J. of Finance and Accounting, Vol. 9, No. 3 (2019) pp. 269 - 290
This study examines the effect of corporate governance, disclosure and firm characteristics on firm performance by taking data from the 2013 financial year annual reports of large public listed companies (based on market capitalisation) in Malaysia. Using multiple regression analysis, this study finds that the effect on firm performance, namely ROA, ROE and Tobin's Q, is different. Board size, the percentage of independent directors on the board and percentage of ownership concentration in firms have a significant negative relationship with ROA. ROE shows a significant negative association with board size, AC independence and ownership concentration. Tobin's Q only shows a significant negative relationship with board size. The findings in this study contribute to literature that good corporate governance characteristics, appropriate disclosure of corporate governance information and firm characteristics have improved the performance of listed companies in Malaysia. The study also suggests limitations and directions for future research.