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Financial instruments disclosure practices: evidence from Malaysian listed firms

The current changes in business settings have directed companies to conduct businesses at the international level which requires the use of financial instruments. The mandatory MFRS 7, an adoption of IFRS 7 standard has been implemented for entities to disclose their involvement with financial ins...

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Main Authors: Syaima' Adznan,, Sherliza Puat Nelson,
Format: Article
Language:English
Published: Fakulti Ekonomi dan Pengurusan 2015
Online Access:http://journalarticle.ukm.my/9584/1/8086-33168-1-PB.pdf
http://journalarticle.ukm.my/9584/
http://ejournal.ukm.my/ajac/issue/view/748/showToc
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spelling my-ukm.journal.95842016-12-14T06:50:22Z http://journalarticle.ukm.my/9584/ Financial instruments disclosure practices: evidence from Malaysian listed firms Syaima' Adznan, Sherliza Puat Nelson, The current changes in business settings have directed companies to conduct businesses at the international level which requires the use of financial instruments. The mandatory MFRS 7, an adoption of IFRS 7 standard has been implemented for entities to disclose their involvement with financial instruments. Thus, the aim of this study is to investigate the financial instruments disclosure practices (FID) among Malaysian listed companies; specifically, on the level of compliance with MFRS 7. The overall results indicate that companies complied with MFRS 7, though there are several requirements omitted by companies. Furthermore, with the revision of Malaysian Code of Corporate Governance (MCCG) in 2012, this study examines the association of corporate governance mechanisms (board expertise, audit committee independence, audit fee, external and internal audit functions) with the extent of FID among companies. Based on a total sample of 319 Malaysian public listed companies for financial year end 2012, the analysis reveals that FID is significantly and positively associated with audit committee independence and external audit functions, while internal audit is negatively associated. Hence, it suggests that effective corporate governance is crucial as this is likely to have some influence on the extent of disclosure level among companies. Fakulti Ekonomi dan Pengurusan 2015 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9584/1/8086-33168-1-PB.pdf Syaima' Adznan, and Sherliza Puat Nelson, (2015) Financial instruments disclosure practices: evidence from Malaysian listed firms. Asian Journal of Accounting and Governance, 6 . pp. 37-48. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/748/showToc
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 The current changes in business settings have directed companies to conduct businesses at the international level which requires the use of financial instruments. The mandatory MFRS 7, an adoption of IFRS 7 standard has been implemented for entities to disclose their involvement with financial instruments. Thus, the aim of this study is to investigate the financial instruments disclosure practices (FID) among Malaysian listed companies; specifically, on the level of compliance with MFRS 7. The overall results indicate that companies complied with MFRS 7, though there are several requirements omitted by companies. Furthermore, with the revision of Malaysian Code of Corporate Governance (MCCG) in 2012, this study examines the association of corporate governance mechanisms (board expertise, audit committee independence, audit fee, external and internal audit functions) with the extent of FID among companies. Based on a total sample of 319 Malaysian public listed companies for financial year end 2012, the analysis reveals that FID is significantly and positively associated with audit committee independence and external audit functions, while internal audit is negatively associated. Hence, it suggests that effective corporate governance is crucial as this is likely to have some influence on the extent of disclosure level among companies.
format Article
author Syaima' Adznan,
Sherliza Puat Nelson,
spellingShingle Syaima' Adznan,
Sherliza Puat Nelson,
Financial instruments disclosure practices: evidence from Malaysian listed firms
author_facet Syaima' Adznan,
Sherliza Puat Nelson,
author_sort Syaima' Adznan,
title Financial instruments disclosure practices: evidence from Malaysian listed firms
title_short Financial instruments disclosure practices: evidence from Malaysian listed firms
title_full Financial instruments disclosure practices: evidence from Malaysian listed firms
title_fullStr Financial instruments disclosure practices: evidence from Malaysian listed firms
title_full_unstemmed Financial instruments disclosure practices: evidence from Malaysian listed firms
title_sort financial instruments disclosure practices: evidence from malaysian listed firms
publisher Fakulti Ekonomi dan Pengurusan
publishDate 2015
url http://journalarticle.ukm.my/9584/1/8086-33168-1-PB.pdf
http://journalarticle.ukm.my/9584/
http://ejournal.ukm.my/ajac/issue/view/748/showToc
_version_ 1643737849712869376
score 13.211869

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