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The Effect of Company Characteristics on Disclosure Quality of Khartoum Stock Exchange Listed Companies

Received: 12 February 2021     Accepted: 23 February 2021     Published: 17 March 2021
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Abstract

This research aims to relate disclosure quality of published annual reports of listed companies in Khartoum Stock Exchange (KSE) to its hypothesized determinants. Such a relation, if exists, would be used to predict the level (size) and kind (quality) of accounting information disclosure. Annual reports of 42 listed companies in KSE out of 52 total listed companies for the year 2007 were used to assess the quality of disclosure. An unweighted disclosure index of 191 mandatory and voluntary information items was developed and utilized using all disclosure requirements by regulating bodies in Sudan, as well as relevant studies from nine developing countries. Actual degrees of disclosure quality of more than 80% of KSE listed companies were measured and analyzed. Correlation and Pearson Product Moment Correlation Coefficient Model tests were used to check the existence of association between the disclosure quality (the dependent variable) and seven independent variables (assets size, sales value, industry type, firm age, return on assets, liquidity ratio and debt ratio). Statistical analysis showed that disclosure quality was positively correlated to the firm size (measured in assets and sales values), and type of industry (measured in regulated versus non- regulated industry). On the other hand, the quality of disclosure was not significantly correlated to company age (measured in number of listing years), company profitability (measured in rate of return on assets) and company debt level (measured in liquidity and leverage ratios).

Published in International Journal of Economics, Finance and Management Sciences (Volume 9, Issue 2)
DOI 10.11648/j.ijefm.20210902.11
Page(s) 46-61
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Disclosure Quality, Disclosure Determinants, KSE, Firm Size, Industry Types and Company Performance

References
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  • APA Style

    Alnour Nadir Alnour Osman, Itra Nader Elnour Osman. (2021). The Effect of Company Characteristics on Disclosure Quality of Khartoum Stock Exchange Listed Companies. International Journal of Economics, Finance and Management Sciences, 9(2), 46-61. https://doi.org/10.11648/j.ijefm.20210902.11

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    ACS Style

    Alnour Nadir Alnour Osman; Itra Nader Elnour Osman. The Effect of Company Characteristics on Disclosure Quality of Khartoum Stock Exchange Listed Companies. Int. J. Econ. Finance Manag. Sci. 2021, 9(2), 46-61. doi: 10.11648/j.ijefm.20210902.11

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    AMA Style

    Alnour Nadir Alnour Osman, Itra Nader Elnour Osman. The Effect of Company Characteristics on Disclosure Quality of Khartoum Stock Exchange Listed Companies. Int J Econ Finance Manag Sci. 2021;9(2):46-61. doi: 10.11648/j.ijefm.20210902.11

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  • @article{10.11648/j.ijefm.20210902.11,
      author = {Alnour Nadir Alnour Osman and Itra Nader Elnour Osman},
      title = {The Effect of Company Characteristics on Disclosure Quality of Khartoum Stock Exchange Listed Companies},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {9},
      number = {2},
      pages = {46-61},
      doi = {10.11648/j.ijefm.20210902.11},
      url = {https://doi.org/10.11648/j.ijefm.20210902.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20210902.11},
      abstract = {This research aims to relate disclosure quality of published annual reports of listed companies in Khartoum Stock Exchange (KSE) to its hypothesized determinants. Such a relation, if exists, would be used to predict the level (size) and kind (quality) of accounting information disclosure. Annual reports of 42 listed companies in KSE out of 52 total listed companies for the year 2007 were used to assess the quality of disclosure. An unweighted disclosure index of 191 mandatory and voluntary information items was developed and utilized using all disclosure requirements by regulating bodies in Sudan, as well as relevant studies from nine developing countries. Actual degrees of disclosure quality of more than 80% of KSE listed companies were measured and analyzed. Correlation and Pearson Product Moment Correlation Coefficient Model tests were used to check the existence of association between the disclosure quality (the dependent variable) and seven independent variables (assets size, sales value, industry type, firm age, return on assets, liquidity ratio and debt ratio). Statistical analysis showed that disclosure quality was positively correlated to the firm size (measured in assets and sales values), and type of industry (measured in regulated versus non- regulated industry). On the other hand, the quality of disclosure was not significantly correlated to company age (measured in number of listing years), company profitability (measured in rate of return on assets) and company debt level (measured in liquidity and leverage ratios).},
     year = {2021}
    }
    

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  • TY  - JOUR
    T1  - The Effect of Company Characteristics on Disclosure Quality of Khartoum Stock Exchange Listed Companies
    AU  - Alnour Nadir Alnour Osman
    AU  - Itra Nader Elnour Osman
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    DO  - 10.11648/j.ijefm.20210902.11
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 46
    EP  - 61
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20210902.11
    AB  - This research aims to relate disclosure quality of published annual reports of listed companies in Khartoum Stock Exchange (KSE) to its hypothesized determinants. Such a relation, if exists, would be used to predict the level (size) and kind (quality) of accounting information disclosure. Annual reports of 42 listed companies in KSE out of 52 total listed companies for the year 2007 were used to assess the quality of disclosure. An unweighted disclosure index of 191 mandatory and voluntary information items was developed and utilized using all disclosure requirements by regulating bodies in Sudan, as well as relevant studies from nine developing countries. Actual degrees of disclosure quality of more than 80% of KSE listed companies were measured and analyzed. Correlation and Pearson Product Moment Correlation Coefficient Model tests were used to check the existence of association between the disclosure quality (the dependent variable) and seven independent variables (assets size, sales value, industry type, firm age, return on assets, liquidity ratio and debt ratio). Statistical analysis showed that disclosure quality was positively correlated to the firm size (measured in assets and sales values), and type of industry (measured in regulated versus non- regulated industry). On the other hand, the quality of disclosure was not significantly correlated to company age (measured in number of listing years), company profitability (measured in rate of return on assets) and company debt level (measured in liquidity and leverage ratios).
    VL  - 9
    IS  - 2
    ER  - 

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Author Information
  • School of Management Sciences, University of Khartoum, Khartoum, Sudan

  • Department of Business Administration, Sudan University College of Girls, Khartoum, Sudan

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