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Risk management committee and financial instrument disclosure

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. Followi...

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Main Authors: Mohamat Sabri Hassan,, Norman Mohd Saleh,, Puan Yatim,, Mara Ridhuan Che Abdul Rahman,
Format: Article
Language:English
Published: FEP 2012
Online Access:http://journalarticle.ukm.my/5688/1/vol3ch2.pdf
http://journalarticle.ukm.my/5688/
http://www.ukm.my/ajag/issues.html
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spelling my-ukm.journal.56882016-12-14T06:39:12Z http://journalarticle.ukm.my/5688/ Risk management committee and financial instrument disclosure Mohamat Sabri Hassan, Norman Mohd Saleh, Puan Yatim, Mara Ridhuan Che Abdul Rahman, 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. FEP 2012 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/5688/1/vol3ch2.pdf Mohamat Sabri Hassan, and Norman Mohd Saleh, and Puan Yatim, and Mara Ridhuan Che Abdul Rahman, (2012) Risk management committee and financial instrument disclosure. Asian Journal of Accounting and Governance, 3 . pp. 13-28. ISSN 2180-3838 http://www.ukm.my/ajag/issues.html
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
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.
format Article
author Mohamat Sabri Hassan,
Norman Mohd Saleh,
Puan Yatim,
Mara Ridhuan Che Abdul Rahman,
spellingShingle Mohamat Sabri Hassan,
Norman Mohd Saleh,
Puan Yatim,
Mara Ridhuan Che Abdul Rahman,
Risk management committee and financial instrument disclosure
author_facet Mohamat Sabri Hassan,
Norman Mohd Saleh,
Puan Yatim,
Mara Ridhuan Che Abdul Rahman,
author_sort Mohamat Sabri Hassan,
title Risk management committee and financial instrument disclosure
title_short Risk management committee and financial instrument disclosure
title_full Risk management committee and financial instrument disclosure
title_fullStr Risk management committee and financial instrument disclosure
title_full_unstemmed Risk management committee and financial instrument disclosure
title_sort risk management committee and financial instrument disclosure
publisher FEP
publishDate 2012
url http://journalarticle.ukm.my/5688/1/vol3ch2.pdf
http://journalarticle.ukm.my/5688/
http://www.ukm.my/ajag/issues.html
_version_ 1643736503406297088
score 13.211869

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