IDEAS home Printed from https://ideas.repec.org/a/ids/injmfa/v1y2009i3p305-319.html
   My bibliography  Save this article

Segmental reporting and competitive disadvantage: a study of Malaysian companies

Author

Listed:
  • Mohammad Talha
  • Abdullah Sallehhuddin
  • Haider H. Madani

Abstract

This study aims to investigate whether competitive disadvantage is experienced by Malaysian companies as they disclose segmental information under the new accounting standard known as FRS 114, Segment Reporting. The study consists of 374 Malaysian publicly listed companies which disclosed segmental information in their 2006 annual reports. Four hypotheses were developed to examine the relationship between segmental reporting disclosure and competitive disadvantage. The logistic regression model was employed to test the formulated hypotheses. The results reveal four main points: a) smaller companies experience greater competitive disadvantage than larger companies as they disclose segment information; b) disclosing the business segment as the primary segment does not lead to greater competitive disadvantage; c) companies which are highly leveraged do not experience greater competitive disadvantage as they disclose segmental information; d) there is no significant association of competitive disadvantage with industrial membership. The insights of this study should benefit various interested stakeholders, as Malaysian companies adopt the new FRS 114, Segment Reporting which calls for more extensive reporting compared to the old standards, IAS 14 and MASB 22.

Suggested Citation

  • Mohammad Talha & Abdullah Sallehhuddin & Haider H. Madani, 2009. "Segmental reporting and competitive disadvantage: a study of Malaysian companies," International Journal of Managerial and Financial Accounting, Inderscience Enterprises Ltd, vol. 1(3), pages 305-319.
    • Handle: RePEc:ids:injmfa:v:1:y:2009:i:3:p:305-319
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=25058
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:injmfa:v:1:y:2009:i:3:p:305-319. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=252 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.