The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia

Purpose – The objective of this study is to investigate the quality of voluntary disclosure practices by Shari’ah compliant companies (ShCCs) in Malaysia. The study also examines factors influencing the quality of voluntary disclosures. Design/methodology/approach – Using a weighted disclosure an...

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Main Author:	Mohd Ghazali, Nazli Anum
Format:	Article
Language:	English
Published:	Emerald Group Publishing 2013
Subjects:	HF5387 Business ethics HF5601 Accounting. Bookkeeping
Online Access:	http://irep.iium.edu.my/30477/ http://irep.iium.edu.my/30477/ http://irep.iium.edu.my/30477/1/Disclosure_of_ShCC.pdf

id	iium-30477
recordtype	eprints
spelling	iium-304772013-07-16T03:20:01Z http://irep.iium.edu.my/30477/ The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia Mohd Ghazali, Nazli Anum HF5387 Business ethics HF5601 Accounting. Bookkeeping Purpose – The objective of this study is to investigate the quality of voluntary disclosure practices by Shari’ah compliant companies (ShCCs) in Malaysia. The study also examines factors influencing the quality of voluntary disclosures. Design/methodology/approach – Using a weighted disclosure analyses approach, a self constructed disclosure checklist was developed to measure the quality of corporate voluntary disclosures (CVDs). The study examines the annual reports of a sample of 76 ShCCs selected from various sectors listed on Bursa Malaysia in the year 2009. Findings – The results indicate that the quality of voluntary disclosures by ShCCs is in overall low consistent with prior studies that gauged the quality of CVDs in Malaysia. The multivariate regression analyses reveal that board size is significant in explaining the quality of CVDs at the 5% significance levels. Company size and leverage as control variables are also significant at the 1% and 10% significance levels in determining the quality of CVDs by ShCCs. Reduced regression model further indicates that government ownership is highly significant at the 1% significance level in explaining the quality of CVD by ShCCs while leverage is significant at the 5% levels. Practical implications – The low level of corporate disclosures by the ShCCs in Malaysia suggests that these companies require awareness on matters relating to the concepts of accountability and full disclosures in becoming accountable to the community. Hence, the Shari’ah Advisory Council of the Securities Commission Malaysia should provide awareness on matters relating to accountability and transparency which could lead to socio economic justice. The commission may also introduce a detailed reporting guideline for the companies to follow. Originality/value – This study provides useful insights on the disclosure quality of ShCCs in Malaysia which remained largely unexplored. The study also represents the first empirical investigation toward the association between voluntary disclosures by ShCCs and corporate governance attributes in the Malaysian context. Emerald Group Publishing 2013 Article PeerReviewed application/pdf en http://irep.iium.edu.my/30477/1/Disclosure_of_ShCC.pdf Mohd Ghazali, Nazli Anum (2013) The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia. Humanomics, 29 (1). pp. 24-42. ISSN 0828-8666 http://www.emeraldinsight.com/journals.htm?articleid=17077441&show=abstract
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5387 Business ethics HF5601 Accounting. Bookkeeping
spellingShingle	HF5387 Business ethics HF5601 Accounting. Bookkeeping Mohd Ghazali, Nazli Anum The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia
description	Purpose – The objective of this study is to investigate the quality of voluntary disclosure practices by Shari’ah compliant companies (ShCCs) in Malaysia. The study also examines factors influencing the quality of voluntary disclosures. Design/methodology/approach – Using a weighted disclosure analyses approach, a self constructed disclosure checklist was developed to measure the quality of corporate voluntary disclosures (CVDs). The study examines the annual reports of a sample of 76 ShCCs selected from various sectors listed on Bursa Malaysia in the year 2009. Findings – The results indicate that the quality of voluntary disclosures by ShCCs is in overall low consistent with prior studies that gauged the quality of CVDs in Malaysia. The multivariate regression analyses reveal that board size is significant in explaining the quality of CVDs at the 5% significance levels. Company size and leverage as control variables are also significant at the 1% and 10% significance levels in determining the quality of CVDs by ShCCs. Reduced regression model further indicates that government ownership is highly significant at the 1% significance level in explaining the quality of CVD by ShCCs while leverage is significant at the 5% levels. Practical implications – The low level of corporate disclosures by the ShCCs in Malaysia suggests that these companies require awareness on matters relating to the concepts of accountability and full disclosures in becoming accountable to the community. Hence, the Shari’ah Advisory Council of the Securities Commission Malaysia should provide awareness on matters relating to accountability and transparency which could lead to socio economic justice. The commission may also introduce a detailed reporting guideline for the companies to follow. Originality/value – This study provides useful insights on the disclosure quality of ShCCs in Malaysia which remained largely unexplored. The study also represents the first empirical investigation toward the association between voluntary disclosures by ShCCs and corporate governance attributes in the Malaysian context.
format	Article
author	Mohd Ghazali, Nazli Anum
author_facet	Mohd Ghazali, Nazli Anum
author_sort	Mohd Ghazali, Nazli Anum
title	The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia
title_short	The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia
title_full	The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia
title_fullStr	The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia
title_full_unstemmed	The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia
title_sort	quality and determinants of voluntary disclosures in annual reports of shari'ah compliant companies in malaysia
publisher	Emerald Group Publishing
publishDate	2013
url	http://irep.iium.edu.my/30477/ http://irep.iium.edu.my/30477/ http://irep.iium.edu.my/30477/1/Disclosure_of_ShCC.pdf
first_indexed	2023-09-18T20:44:37Z
last_indexed	2023-09-18T20:44:37Z
_version_	1777409591513972736

The quality and determinants of voluntary disclosures in annual reports of Shari'ah compliant companies in Malaysia

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