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/ http://journalarticle.ukm.my/5688/ http://journalarticle.ukm.my/5688/1/vol3ch2.pdf

id	ukm-5688
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
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/ http://journalarticle.ukm.my/5688/ http://journalarticle.ukm.my/5688/1/vol3ch2.pdf
first_indexed	2023-09-18T19:44:51Z
last_indexed	2023-09-18T19:44:51Z
_version_	1777405831408517120

Risk management committee and financial instrument disclosure

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