The Quality of Mandatory Disclosure by Listed Companies in Bangladesh
Journal of Finance and Accounting
Volume 4, Issue 4, July 2016, Pages: 194-201
Received: May 23, 2016; Accepted: Jun. 5, 2016; Published: Jun. 23, 2016
Views 4016      Downloads 135
Author
Mohammad Abu Sufian, Department of Business Administration, Pabna University of Science and Technology, Pabna, Bangladesh
Article Tools
Follow on us
Abstract
The main thrust of this paper is to assess the level of mandatory disclosures attributable to the quality of mandatory disclosure practices by the listed companies in Bangladesh. It is also designed to examine the trend of disclosure over the year and to investigate the variation of disclosure across the samples and industries for measuring the quality of disclosure practices. Thirty annual reports for the year 2006-2010 of non-financial companies with listed Dhaka Stock Exchange in Bangladesh have been considered as sample to find the empirical result of this study. The outcome of the analysis reveals that the mean score of mandatory disclosure is 59.28 percent with a range of 45.34% to 71.85% and 87 percent of sample companies have shown a significant difference in the disclosure scores in their annual reports. The T-test result shows that there is a significant variation of disclosure among the sample firms and a little variation is observed over the years. But the result of F-test reports no variation of disclosure across the industrial sectors. The overall findings of this study is that the quality of mandatory disclosure practiced by listed companies in Bangladesh is being improved over the years at a little variation.
Keywords
Mandatory Disclosure, Non-financial Companies, Trend, DSE, Reporting Environment
To cite this article
Mohammad Abu Sufian, The Quality of Mandatory Disclosure by Listed Companies in Bangladesh, Journal of Finance and Accounting. Vol. 4, No. 4, 2016, pp. 194-201. doi: 10.11648/j.jfa.20160404.15
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Ahmed, K. and Nicholls, D. (1994) ‘The Impact of Non-financial Company Characteristics on Mandatory Disclosure Compliance in Developing Countries: The case of Bangladesh’, The International Journal of Accounting, Vol. 29, pp. 62-77.
[2]
Ahmed, M. U., Bala, S. K. and Chowdhury, A. (2004) ‘Financial Reporting in Compliance with International Accounting Standards: A study in Bangladesh with reference to IAS 1’, Dhaka University Journal of Business Studies, Vol. 25, No. 2, pp. 17-52.
[3]
Ahmed, K. (1996) ‘Disclosure policy choice and corporate characteristics: A study of Bangladesh’, Asia Pacific Journal of Accounting, pp. 184-203.
[4]
Ahmed, H. and Miya, M. T. I. (2007) ‘Firm’s Trading Status in the Stock Market and the Extent of Disclosure in India’, The Cost and Management, Vol. 35, No. 6, pp. 46-51.
[5]
Alam, J. (2007) ‘Financial Disclosure in Developing Countries with Special Reference to Bangladesh’, Ph.D. Dissertation, University of Ghent, Belgium.
[6]
Ali, M. J., Ahmed, K and Henry, D. (2004) ‘Disclosure compliance with national accounting standards by listed companies in South Asia’, Accounting and Business Research, Vol. 34, No. 3, pp. 183-199.
[7]
Akhtaruddin, M. (2005a) ‘Corporate Mandatory Disclosure Practices in Bangladesh’, The International Journal of Accounting, Vol. 40, pp. 399-422.
[8]
Akhtaruddin, M. (2005b) ‘Mandatory Disclosure and its Association with Company Age: A study of Listed Companies in Bangladesh’, Journal of the Institute of Bangladesh Studies, Vol. 28, pp. 33-50.
[9]
Akhtaruddin, M. and Haron, H. (2012) ‘Mandatory compliance by publicly listed companies in Malaysia’, Int. J. Accounting, Auditing and performance Evaluation, Vol. 8 No. 4, pp 303-335.
[10]
Akter, M and Hoque, M. (1993) ‘Disclosure Practices in Bangladesh: A Case Study of the Banking Sector’, Dhaka University Journal of Business Studies, Vol. 14, No. 2, pp. 29-42.
[11]
Bhattacharjee, S. and Hossain, M. S. (2010) ‘Determinants of Financial Reporting Outcomes Following IFRS Adoption-Implications for Bangladesh’, The Bangladesh Accountant, Vol. 68, No. 38, pp. 10-19.
[12]
Bokpin, G. A. (2013) ‘Determinants and value relevance of corporate disclosure: Evidence from the emerging capital market of Ghana’, Journal of Applied Accounting Research, Vol. 14 No. 2, pp. 127-146.
[13]
Buzby, S. L. (1974) ‘The nature of adequate disclosure’, Journal of Accountancy, Vol. 49: pp 38-47.
[14]
Chithambo, L. and Tauringana, V. (2014) ‘Company specific determinants of greenhouse gases disclosures’, Journal of Applied Accounting Research, Vol. 15 No. 3, pp. 323-338
[15]
Ferdous, C. S. (2012) ‘Compliance with Codes of Corporate Governance in Developing Economies: The Case of Bangladesh’, PhD, University of Birmingham.
[16]
Galani, D., Alexandridis, A. and Stavropoulos, A. (2011) ‘The Association between the Firm Characteristics and Corporate Mandatory Disclosure: the Case of Greece’, World Academy of Science, Engineering and Technology, pp. 1048-1054.
[17]
Haque, T., Jahan, M. A. and Khan, M. H-U-Z. (2007) ‘Corporate Disclosures through Directors’ Report-Compliance of the Companies Act 1994’, The Cost and Management, Vol. 35, No. 1, pp. 28-35.
[18]
Hasan, T., Karim, W. and Quayes, S. (2008) ‘Regulatory change and the quality of compliance to mandatory disclosure requirements: evidence from Bangladesh’, Research in Accounting Regulation, Vol. 20, pp. 193-203.
[19]
Hassan, O. A. G., Romilly, P., Giorgioni, G. and Power, D. (2009) ‘The value relevance of disclosure: Evidence from the emerging capital market of Egypt’, The International Journal of Accounting, Vol. 44, pp. 79-102.
[20]
Hossain, M. (2008) ‘The Extent of Disclosure in Annual Reports of Banking Companies: The Case of India’, European Journal of Scientific Research, Vol. 23, No. 4, pp. 659-680.
[21]
Hossain, M., Islam, K. and Andrew, J. (2006) ‘Corporate Social and Environmental Disclosure in Developing Countries: Evidence from Bangladesh’, Working paper, Faculty of Commerce, University of Wollongong.
[22]
Hossain, D. M., Khan, A. R and Yesman, I. (2004) ‘The Nature of Voluntary Disclosures on Human Resource in the Annual Reports of Bangladeshi Companies’, Dhaka University Journal of Business Studies, Vol. 25, No. 1, pp. 221-228.
[23]
Houqe, M. N. (2004) ‘Accounting Disclosure and Measurement: A Critical Evaluation of Hakansson’s Model’, Dhaka University journal of Business Studies, Vol. 25, No. 1, pp. 167-173.
[24]
Islam, S., Hosen, A. and Islam, M. (2005) ‘An Examination of Corporate Environmental Disclosure by the Bangladeshi Public Limited Companies’, Pakistan Journal of Social Sciences, Vol. 3, No. 9, pp. 1095-1102.
[25]
Izah, K. N., Ismail, K. and Chandler, R. (2005) ‘Disclosure in the Quarterly Reports of Malaysian Companies’, Online, Available at www.google.com (visited March 5, 2009)
[26]
Khan, A. R., Siddiqui, J. and Hossain, D. M. (2004) ‘Reporting on Corporate Governance as a Voluntary Disclosure: A study on the Annual Reports of BEXIMCO Group’, Dhaka University Journal of Business Studies, Vol. 25, No. 1, pp. 131-145.
[27]
Karim, AKM. W. and Ahmed, J. U. (2005) ‘Determinants of IAS disclosure compliance in emerging economy: Evidence from exchange-listed companies in Bangladesh’, Working paper series, No. 21, pp. 1-23.
[28]
Lopes, P. T., Rodrigues, L. L. (2007) ‘Accounting for financial instruments: An analysis of the determinants of disclosure in the Portuguese stock exchange’, The International Journal of Accounting, Vol. 42, pp. 25-56.
[29]
Naser, K. and Nuseibeh, R. (2003) ‘Quality of financial reporting: evidence from the listed Saudi nonfinancial companies’, The International Journal of Accounting, Vol. 38, pp. 41-69.
[30]
Naser, K., Al-Khatib, K, and Karbhari, Y. (2002) ‘Empirical evidence on the depth of corporate information disclosure in developing countries: The case of Jordan’, International Journal of Commerce & Management, Vol. 12, No. 3 & 4, pp. 122-155.
[31]
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, Vol. 33, No. 5, pp. 605-631.
[32]
Parry, M. J. 1989 ‘The Role of Accounting in the Economics Development of Bangladesh’, Ph. D. Dissertation, University of Wales.
[33]
Rahman, M. M. (1999) ‘The Extent of Mandatory and Voluntary Financial Disclosure by Listed Companies in Bangladesh: An Empirical Study’, Dhaka University Journal of Business Studies, Vol. 20, No. 1, pp. 189-208.
[34]
Riazuddin, M., Iqbal, M. M. and Reza, S. M. (2006) ‘Disclosure Practices: A Comparison of Commercial Banks and Insurance Companies in Bangladesh’, The Cost and Management, Vol. 34, No. 1, pp. 16-28.
[35]
Sarker, B. and Ahmed, H. (2007) ‘Disclosure on Corporate Governance by Listed Companies in Bangladesh’, The Cost and Management, Vol. 35, No. 1, pp. 19-27.
[36]
Sejjaaka, S. (2003) ‘Corporate Mandatory Disclosure by Financial Institutions in Uganda’, Online, Available at www.google.com.
[37]
Siddique, M. A. B. and Islam, M. R. (2010) ‘Disclosure Practices of Insurance Companies in Bangladesh: Study on Some Selected Insurance Companies’, The Cost and Management, Vol. 39, No. 3, pp. 27-30.
[38]
Thompson, P. and Yeung, M. C. H. (2006) ‘The Determinants of Transparency for Singaporean Listed Companies’, Research Paper Series, Division of Business and Management, University of Nottingham in Malaysia. Available at http://www.unim.nottingham.ac.uk/dbm
[39]
Wallace, R. S. O. (1988) ‘Corporate financial reporting in Nigeria’, Accounting and Business Research, Vol. 18 (72): pp 352-365.
[40]
Wallace, R. S. O. and. 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, Vol. 14, pp. 311-368.
[41]
Xiao, Z. (1999) ‘Corporate Disclosures Made by Chinese Listed Companies’, The International Journal of Accounting, Vol. 34, No. 3, pp. 349-373.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186