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The Level of Non-Mandatory Disclosures in Developing Countries: a Fijian Perspective

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Author Info
Zahirul Hoque () (La Trobe University)
Acklesh Prasad () (The University of the South Pacific)
Abstract

Purpose Investigates the influence of society, harmonization and market orientation on the level of non-mandatory disclosures in a developing country context - Fiji. Design/methodology/approach Theoretically, this paper uses legitimacy theory. A content analysis of the non- mandatory disclosures of the 15 listed public companies in Fiji was undertaken. Findings Findings indicate that outright adoption of International Accounting Standards (IASs) by Fijian public limited companies does not engender in adequate disclosure of information on a non-mandatory basis. This is largely ascribed to the differing cultural values of societies and monopolistic characteristics of markets in Fiji that discourage individuals to exercise judgement. Further, findings suggest that the influence of society, market concentration and harmonisation of accounting standards has not rendered increased disclosure of non- mandatory information than those considered mandatory by the subject listed companies. Research limitations/implications While the methods utilised delivered a great deal of useful quantitative data, it must be remembered that the results were based on 15 listed companies in Fiji’s Stock Exchange. Further studies using similar variables to this one from other developing countries would provide understanding of the extent to which these results are generalisable across other developing countries and industries. Practical implications Results provide a resource for individuals, organisations and policy makers attempting to explicate or understand what induces particular entities to voluntarily disclose non- mandatory information in their annual report. Original/value of paper Adds to our understanding of non- mandatory disclosure and therefore represents a substantial addition to, and extension of, the international literature engaged in efforts to interpret the motives for such disclosure.

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Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Accounting, Finance, Financial Planning and Insurance Series with number 2006_01.

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Length: 25 pages
Date of creation: 09 Mar 2006
Date of revision:
Handle: RePEc:dkn:acctwp:aef_2006_01

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Related research
Keywords: Harmonisation; Non-Mandatory Disclosure; Culture; Developing Economies; International Accounting Standards; Fiji;

References listed on IDEAS
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  1. Gamble, George O. & Hsu, Kathy & Jackson, Cynthia & Tollerson, Cynthia D., 1996. "Environmental disclosures in annual reports: An international perspective," The International Journal of Accounting, Elsevier, vol. 31(3), pages 293-331. [Downloadable!] (restricted)
  2. Niskala, Mikael & Pretes, Michael, 1995. "Environmental reporting in Finland: A note on the use of annual reports," Accounting, Organizations and Society, Elsevier, vol. 20(6), pages 457-466, August. [Downloadable!] (restricted)
  3. Darrell, W. & Schwartz, Bill N., 1997. "Environmental disclosures and public policy pressure," Journal of Accounting and Public Policy, Elsevier, vol. 16(2), pages 125-154. [Downloadable!] (restricted)
  4. Baskerville, Rachel F., 2003. "Hofstede never studied culture," Accounting, Organizations and Society, Elsevier, vol. 28(1), pages 1-14, January. [Downloadable!] (restricted)
  5. Verrecchia, Robert E., 1983. "Discretionary disclosure," Journal of Accounting and Economics, Elsevier, vol. 5(1), pages 179-194, April. [Downloadable!] (restricted)
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