Relationship Between forward-looking information disclosure and Financial Performance of Non-Financial Firms Listed in Nairobi Securities Exchange, Kenya (original) (raw)
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2015
In the last few decades, the problem of voluntary disclosure of financial or non-financial information has been in the attention of many researchers. Shareholders, investors and other stakeholders make their investment and financial decisions on the basis of the information they get from annual reports. These annual reports may contain both mandatory and voluntary information. These voluntary disclosures are done by managers in the spirit of openness and transparency and may contain vital information that may assist all interested parties to make wise decisions. This paper sought out to examine empirically the relationship between voluntary disclosures and financial performance measure, Return on Investment (ROI), of companies quoted at the Nairobi Securities Exchange. Annual reports of 10 listed companies from the NSE 20-share index were investigated from the year 2011-2013. A disclosure checklist consisting of 49 voluntary disclosure items of information was used. A regression ana...
2016
This study envisaged to determine the relationship between Value Added Statement Disclosure and financial performance of non-financial firms listed in the Nairobi Securities Exchange (NSE). Performance indicator was market based measurement (Tobin’s Q ratio). The study employed descriptive cross-sectional research design. A census of 45 nonfinancial firms listed in NSE, was taken. The study used secondary panel data contained in the annual reports of non-financial firms listed in NSE, Kenya. The data was extracted from the NSE hand book for the period 2011-2015 and from companies’ websites. This was complimented by semistructured questionnaires which were given to 45 Chief Executive Officers. Data analysis was done by both descriptive (measures of central tendency and dispersion) and inferential statistic (multiple regression analysis and correlation analysis) with help of Statistical Packages of Social Sciences (SPSS version 22). The results revealed that there was a significant po...
Journal of finance and accounting, 2023
Voluntary disclosure is empowering the public to get more informed about the company and portrays how the organization wants the outsiders to perceive it in their decision-making process. Voluntary disclosure provides information beyond the compliance requirement by the law. This study examined the effect of voluntary disclosure on stock market return of non-financial firms listed on the Nairobi Securities Exchange. The study adopted positivism as data collection and hypothesis development and testing was achieved. The study used quantitative research design to correlate study variables using mathematical analysis methods. The correlation results indicated that voluntary disclosure portrayed a positive association to stock market return. Regression of coefficients of the static model results indicate that voluntary disclosure and stock market return of non-financial firms listed on the Nairobi securities exchange is positively and significantly related. The results implied that there exist a positive and significant relationship between voluntary disclosure on stock market return since their coefficient values were positive. The regression coefficients result of lagged stock market return and stock market return was positively and significantly related. The regression of coefficients results indicate that voluntary disclosure and stock market return is positively and significantly related. The study concluded that voluntary disclosure has a positive and significant effect on stock market return in non-financial firms on the Nairobi securities exchange. Therefore, voluntary disclosure was found to play a significant role in the stock market performance that generated return predictability. These results imply that when more information is disclosed about the firm then the market generating excess returns. Voluntary disclosure of information could facilitate the public to be more confident in the company. The study also shows that voluntary disclosure is relatively correlated with stock returns over time. The
Factors influencing voluntary corporate disclosure by Kenyan companies
Corporate Governance: an …, 2006
There has been considerable research in respect of voluntary disclosure by companies and factors that may explain such disclosure. However, most of the research has been centred in developed countries. This study extends the previous literature by examining voluntary disclosure in a developing country, namely Kenya. Over the last decade, the Kenyan Government has initiated several far-reaching reforms at the Nairobi Stock Exchange (NSE) in order to mobilise domestic savings and attract foreign capital investment. These measures include privatisation of state corporations through the stock exchange and allowing foreign investors to own shares in the listed companies. This study provides a longitudinal examination of voluntary disclosure practices in the annual reports of listed companies in Kenya from 1992 to 2001. The study investigates the extent to which corporate governance attributes, ownership structure and company characteristics influence voluntary disclosure practices.
2014
In every organisation, managers act as stewards of the company resources for the owners of the company. As such they report regularly to the owners on the company"s performance disclosing the statutorily required information as regulated by various authoritative bodies. Managers in their reporting disclose information beyond requirements such as generally accepted accounting principles where the information is believed to be relevant to the decision-making of users of the company's annual reports. Voluntary disclosure is carried out by many companies, although the extent and type of voluntary disclosure differs by geographic region, industry, and company size. This study sought to establish the effect of voluntary disclosures on stock returns of firms listed at the Nairobi Securities Exchange. Through content analysis of annual audited financials reports of companies in the banking and construction and allied industries, the study sought to establish the effect of voluntary disclosures such as; business data, analysis of business data, forward-looking information and information about management and shareholders, background about the company and information about intangible assets on stock returns. The results obtained from the model indicate that voluntary disclosure of firm"s information has positive impact on stock return. Disclosure on business data, forward looking information, background about the company and information on intangible assets not disclosed in the financial statements positively impact on the firm"s stock returns. However, information on management analysis of business data and information about management and shareholders has negative implication on company"s stock return. vi
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Journal of Economics and Sustainable Development, 2014
The purpose of this study was to investigate the effect of risk disclosure in the published financial statement on the performance of listed companies in Nigeria. Specifically the study investigated on the effects of operational risk disclosure, financial risks disclosure and strategic risks disclosure on the performance of listed companies in Nigeria. This study adopted a descriptive design which is described as a method of collecting information by interviewing or administering a questionnaire to a sample of individuals. The instrument of data collection for this research was a questionnaire as the study used primary data. The study targeted all the 258 listed companies in Nigeria. The sample of this study was 258 risk managers as the researcher issued one questionnaire per company. Descriptive statistics such as mode, median, mean, standard deviation, etc were used to perform data analysis. These measures were calculated using Statistical Package for the Social Sciences (SPPS 20) software. SPSS tool (Statistical Package for the Social Sciences) was used to organize and analyze data. The study findings indicated that there was increase in performance of listed firms due to risk disclosure in the financial statement. The results indicate that the variables; operational risk disclosure, financial risks disclosure and strategic risks disclosure were satisfactory in explaining performance of listed companies. This conclusion is supported by the R square of 0.655. This means that the combined effect of the predictor variables (operational risk disclosure, financial risks disclosure and strategic risks disclosure) explains 65.5% of the variations in performance of listed companies in Nigeria. The results reveal that operational risk disclosure, financial risks disclosure and strategic risks disclosure are statistically significant in explaining performance of listed companies.
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Effect of Non-Financial Disclosures on Performance of Non- Financial Firms' in Nigeria
Journal of Accounting and Financial management, 2020
This study empirically investigated the effect of Non-Financial Disclosures on performance of non financial firms' in Nigeria. The study is vital as it portrays the extent to which non financial disclosures influences firms' performance. In order to determine the relationship between non financial disclosures (NFDs) and firms' performance, NFDs key proxy variables were used in the study, namely Intellectual Capital Disclosure, Risk Management Disclosure and Corporate Governance Disclosure while firms' performance on the other hand is represented by return on equity. Three hypotheses were formulated to guide the investigation and the statistical test of parameter estimates was conducted using panel regression model operated with STATA 15. Ex Post Facto design was adopted and data for the study were obtained from the Nigerian Stock Exchange Factbook and the published annual financial reports of the entire non financial firms quoted on NSE with data spanning from 2011-2018. The findings generally indicate that Intellectual Capital Disclosure, Risk Management Disclosure and Corporate Governance Disclosure have exerted significant influence on firms' performance (ROE) at 5% significant level. Based on this, the study concludes that non financial disclosures have positively improved firms performance over the years. The study however suggests that firms should disclose more of these information in their annual reports concerning her corporate governance mechanism, working relationship with employees and the extent of risk management; as the level these information disclosures have exerted significant influence on firms performance over the years.
2019
This study aims to examine the determinants and consequences of the Quality of Forward-looking Information Disclosure (QFLID) among non-financial Indian listed companies. Following objectives are accomplished in this study: Firstly, to investigate the association between Corporate Governance mechanisms (CG) and QFLID. Secondly, to investigate the impact of QFLID on Firm Value (FV) and lastly, to investigate the impact of QFLID on the Accuracy of Analysts’ Earnings Forecast (ACUAF). The study uses a sample of 2120 observations of non-financial companies listed on the Bombay Stock Exchange (BSE) from 2006 to 2015. To measure QFLID, this study adopted a multidimensional framework designed by Beretta & Bozzolan (2008). Both the quantity and the richness dimensions are considered in this framework. Regarding the first objective, the results indicate that board size, frequency of board meetings, board independence, female presence on the board, frequency of audit committee meetings, indep...