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Ownership Structure And Voluntary Disclosure In Annual Reports Of Bangladesh

Author

Listed:
  • Abdur ROUF

    (Department of Business Administration, City University, Bangladesh)

  • Abdullah-Al HARUN

    (Department of Accounting and Information Systems, University of Rajshahi, Bangladesh)

Abstract

This study examines the association between ownership structure and voluntary disclosure levels in the 2007 annual report of 94 samples of Bangladeshi listed companies. Ownership structure is provided by management ownership and institutional ownership. Using agency theory, it is argued that firms with higher management of ownership structure may disclose less information and higher institutional of ownership structure may disclose more information to shareholders through voluntary disclosure. It is because the determined ownership structure provides firms lower incentives to voluntarily disclose information to meet the needs of non-dispersed shareholders .Agency theory is utilized as the underlying theoretical framework of voluntary disclosure. Using a unweighted relative disclosure index for measuring voluntary disclosure. The extent of voluntary disclosure level is measured using 68 items recommended by those who have professional qualifications. The result shows that the extent of corporate voluntary disclosures is negatively associated with a higher management of ownership structure and the extent of corporate voluntary disclosures is positively associated with a higher institutional ownership structure.

Suggested Citation

  • Abdur ROUF & Abdullah-Al HARUN, 2011. "Ownership Structure And Voluntary Disclosure In Annual Reports Of Bangladesh," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 7, pages 239-251, May.
    • Handle: RePEc:aic:revebs:y:2011:i:7:roufa
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    References listed on IDEAS

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    Cited by:

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    2. Amneh Alkurdi & Munther Al-Nimer & Mohammad Dabaghia, 2017. "Accounting Conservatism and Ownership Structure Effect: Evidence from Industrial and Financial Jordanian Listed Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 7(2), pages 608-619.
    3. Sammy Thuo Kangea & Tabitha Nasieku & Willy Muturi, 2022. "Effect of Board Diversity on Earnings quality of Non-Financial Firms Listed at the Nairobi Securities Exchange," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 12(3), pages 1-4.
    4. Ahnaf Ali Alsmady, 2018. "Ownership Structure and its Endogeneity Effect on the Quality of Financial Reporting," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(3), pages 509-526, March.
    5. Saied Jabbarzadeh Kangarlouei & Hamed Rezaei & Morteza Motavassel, 2013. "The investigation of the effect of voluntary disclosure on earnings quality and cost of capital in firms listed in Tehran Stock Exchange," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 1(1), pages 1-6.
    6. Doaa El-Diftar & Eleri Jones & Mohamed Moustafa Soliman, 2016. "The Impact of Institutional Blockholders on Voluntary Disclosure and Transparency: The Case of Egypt," Working Papers 1039, Economic Research Forum, revised Aug 2016.
    7. Alhassan Haladu & Basariah Bt. Salim, 2016. "Corporate Ownership and Sustainability Reporting: Environmental Agencies' Moderating Effects," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1784-1790.
    8. Sumon Kumar Das & Md Khalilur Rahman & Songita Roy, 2024. "Does ownership type affect sustainability reporting disclosure? Evidence from an emerging market," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 52-68, March.
    9. Dana Adel Alqatameen & Mahmoud Abd Alhaleem Alkhalaileh & Mohammad Nadeem Dabaghia, 2020. "Ownership Structure, Board Composition and Voluntary Disclosure by Non-financial Firms Listed in )ASE)," International Business Research, Canadian Center of Science and Education, vol. 13(7), pages 1-93, July.

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    More about this item

    Keywords

    Corporate Governance; Ownership structure; Voluntary Disclosure;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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