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Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index

The use of graphs in disclosing financial information in corporate annual reports represents a significant dimension of management’s disclosure strategy.This study extends previous research into financial graphs by documenting the nature and extent of graphs use among the 2003 corporate annual repor...

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Main Authors: Abdul Rahman, Azhar, Hamdan, Mohd Diah, Ibrahim, Mohd Azhar
Format: Monograph
Language:English
English
Published: Universiti Utara Malaysia 2006
Subjects:
HF5601 Accounting
Online Access:http://repo.uum.edu.my/7835/1/aZ.pdf
http://repo.uum.edu.my/7835/3/1.Azhar%20Abdul%20Rahman.pdf
http://repo.uum.edu.my/7835/
http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000241726
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spelling my.uum.repo.78352014-07-10T00:23:17Z http://repo.uum.edu.my/7835/ Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index Abdul Rahman, Azhar Hamdan, Mohd Diah Ibrahim, Mohd Azhar HF5601 Accounting The use of graphs in disclosing financial information in corporate annual reports represents a significant dimension of management’s disclosure strategy.This study extends previous research into financial graphs by documenting the nature and extent of graphs use among the 2003 corporate annual reports of the top 50 and bottom 50 listed Malaysian companies ranked by net profit before tax.A disclosure index known as Graphical Information Disclosure Index (GIDI) is developed to measure the level of graphical disclosure.Additionally, the research examines whether companies with ‘good’ and ‘poor’ performance disclose graphs differently; and whether the voluntary disclosure of graphical information can be explained by signalling theory.Drawing on signalling theory, six hypotheses are developed and tested.Sixty-four per cent of companies use graphs; the mean number is 5.3, with plantation companies using the most graphs.The most commonly graphed financial variables are sales, profit, EPS and shareholders’ fund. Evidence is found that graph use is contingent upon favourable performance.Using a wider industry classification, this study also finds a significant difference in the level of disclosure by different industry sectors.Comparison with prior single-country studies reveals that graphs are used less extensively in Malaysia than in the U.S.A., Canada, U.K. and Australia; but more extensively than Hong Kong.The implications of these findings are considered and areas of further research discussed. Universiti Utara Malaysia 2006 Monograph NonPeerReviewed application/pdf en http://repo.uum.edu.my/7835/1/aZ.pdf application/pdf en http://repo.uum.edu.my/7835/3/1.Azhar%20Abdul%20Rahman.pdf Abdul Rahman, Azhar and Hamdan, Mohd Diah and Ibrahim, Mohd Azhar (2006) Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index. Project Report. Universiti Utara Malaysia. (Unpublished) http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000241726
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
English
topic HF5601 Accounting
spellingShingle HF5601 Accounting
Abdul Rahman, Azhar
Hamdan, Mohd Diah
Ibrahim, Mohd Azhar
Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index
description The use of graphs in disclosing financial information in corporate annual reports represents a significant dimension of management’s disclosure strategy.This study extends previous research into financial graphs by documenting the nature and extent of graphs use among the 2003 corporate annual reports of the top 50 and bottom 50 listed Malaysian companies ranked by net profit before tax.A disclosure index known as Graphical Information Disclosure Index (GIDI) is developed to measure the level of graphical disclosure.Additionally, the research examines whether companies with ‘good’ and ‘poor’ performance disclose graphs differently; and whether the voluntary disclosure of graphical information can be explained by signalling theory.Drawing on signalling theory, six hypotheses are developed and tested.Sixty-four per cent of companies use graphs; the mean number is 5.3, with plantation companies using the most graphs.The most commonly graphed financial variables are sales, profit, EPS and shareholders’ fund. Evidence is found that graph use is contingent upon favourable performance.Using a wider industry classification, this study also finds a significant difference in the level of disclosure by different industry sectors.Comparison with prior single-country studies reveals that graphs are used less extensively in Malaysia than in the U.S.A., Canada, U.K. and Australia; but more extensively than Hong Kong.The implications of these findings are considered and areas of further research discussed.
format Monograph
author Abdul Rahman, Azhar
Hamdan, Mohd Diah
Ibrahim, Mohd Azhar
author_facet Abdul Rahman, Azhar
Hamdan, Mohd Diah
Ibrahim, Mohd Azhar
author_sort Abdul Rahman, Azhar
title Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index
title_short Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index
title_full Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index
title_fullStr Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index
title_full_unstemmed Measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index
title_sort measuring the voluntary disclosure of graphical information in annual reports using a new disclosure index
publisher Universiti Utara Malaysia
publishDate 2006
url http://repo.uum.edu.my/7835/1/aZ.pdf
http://repo.uum.edu.my/7835/3/1.Azhar%20Abdul%20Rahman.pdf
http://repo.uum.edu.my/7835/
http://lintas.uum.edu.my:8080/elmu/index.jsp?module=webopac-l&action=fullDisplayRetriever.jsp&szMaterialNo=0000241726
_version_ 1644279655814922240
score 13.211869

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