Accounting for financial instruments: An analysis of the determinants of disclosure in the Portuguese stock exchange
AbstractThis paper analyzes the determinants of disclosure level in the accounting for financial instruments of Portuguese listed companies. We have constructed an index of disclosure based on IAS 32 and 39 disclosure requirements and computed the index score for each company. Consequently, this study also analyzes the characteristics of companies that are closest to IAS before 2005. The analysis includes variables that capture intrinsic features of Portuguese companies and institutional regulatory context, such as capital structure and characteristics of the corporate governance structure, within contingency theory. We could not find significant influence of corporate governance structure and of financing structure. We conclude that disclosure degree is significantly related to size, type of auditor, listing status and to the economic sector. This research reveals areas for improvement of the Portuguese companiesâ reporting practices and suggests areas for intervention of the Portuguese capital markets regulator in the context of mandatory IAS after 2005.
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Bibliographic InfoArticle provided by Elsevier in its journal The International Journal of Accounting.
Volume (Year): 42 (2007)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/620179
Other versions of this item:
- Patrícia Teixeira Lopes & Lúcia Lima Rodrigues, 2006. "Accounting for Financial Instruments: An Analysis of the Determinants of Disclosure in the Portuguese Stock Exchange," FEP Working Papers 209, Universidade do Porto, Faculdade de Economia do Porto.
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
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