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...

Full description

Bibliographic Details
Main Authors:	Syaima' Adznan, Sherliza Puat Nelson
Format:	Article
Language:	English
Published:	Fakulti Ekonomi dan Pengurusan 2015
Online Access:	http://journalarticle.ukm.my/9584/ http://journalarticle.ukm.my/9584/ http://journalarticle.ukm.my/9584/1/8086-33168-1-PB.pdf

id	ukm-9584
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
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/ http://journalarticle.ukm.my/9584/ http://journalarticle.ukm.my/9584/1/8086-33168-1-PB.pdf
first_indexed	2023-09-18T19:55:18Z
last_indexed	2023-09-18T19:55:18Z
_version_	1777406488713625600

Financial instruments disclosure practices: evidence from Malaysian listed firms

Similar Items