Corporate boards, shareholding structures and voluntary disclosure in emerging MENA economies

Ahmed Sarhan, Collins Ntim

Research output: Contribution to journalArticle

Abstract

Purpose – The purpose of this paper is to investigate the level of voluntary compliance with, and disclosure of, corporate governance (CG) best practices, and the extent to which board characteristics and shareholding structures can explain discernible differences in the level of voluntary CG disclosure in a number of emerging Middle Eastern and North African (MENA) economies. Design/methodology/approach – The paper uses a number of multivariate regression methods, namely, ordinary least squares, weighted, non-linear, lagged-effects, two-stage least squares and fixed-effects regression techniques to analyse data collected for a sample of listed corporations in emerging MENA
economies from 2009 to 2014. Findings – First, in general, MENA listed firms have a relatively lower level of voluntary compliance with, and disclosure of, CG practices compared to listed firms in developed countries. Second, the evidence suggests that corporate board characteristics, including board diversity, have a positive association with the level of voluntary CG disclosure. In contrast, the findings indicate that unitary board leadership structure, director shareholdings and government shareholdings negatively impact on the level of voluntary CG disclosure. The study does not, however, find any evidence to suggest that family shareholdings have any significant relationship with the level of voluntary CG disclosure. The findings are generally robust to alternative measures and potential endogeneity problems.
Originality/value – This is one of the first empirical efforts at investigating the association between CG mechanisms and voluntary disclosure in emerging MENA economies that observably relies on a multi-theoretical framework within a longitudinal cross-country research setting.
Original languageEnglish
Pages (from-to)2-27
Number of pages26
JournalJournal of Accounting in Emerging Economies
Volume9
Issue number1
DOIs
Publication statusPublished - 4 Feb 2019

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corporate governance
compliance
economy
leadership
methodology
firm
regression
effect
Corporate governance
Corporate boards
Disclosure
Africa
Voluntary disclosure
Shareholding
best practice
evidence
director
corporation
developed country
method

Cite this

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title = "Corporate boards, shareholding structures and voluntary disclosure in emerging MENA economies",
abstract = "Purpose – The purpose of this paper is to investigate the level of voluntary compliance with, and disclosure of, corporate governance (CG) best practices, and the extent to which board characteristics and shareholding structures can explain discernible differences in the level of voluntary CG disclosure in a number of emerging Middle Eastern and North African (MENA) economies. Design/methodology/approach – The paper uses a number of multivariate regression methods, namely, ordinary least squares, weighted, non-linear, lagged-effects, two-stage least squares and fixed-effects regression techniques to analyse data collected for a sample of listed corporations in emerging MENAeconomies from 2009 to 2014. Findings – First, in general, MENA listed firms have a relatively lower level of voluntary compliance with, and disclosure of, CG practices compared to listed firms in developed countries. Second, the evidence suggests that corporate board characteristics, including board diversity, have a positive association with the level of voluntary CG disclosure. In contrast, the findings indicate that unitary board leadership structure, director shareholdings and government shareholdings negatively impact on the level of voluntary CG disclosure. The study does not, however, find any evidence to suggest that family shareholdings have any significant relationship with the level of voluntary CG disclosure. The findings are generally robust to alternative measures and potential endogeneity problems.Originality/value – This is one of the first empirical efforts at investigating the association between CG mechanisms and voluntary disclosure in emerging MENA economies that observably relies on a multi-theoretical framework within a longitudinal cross-country research setting.",
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Corporate boards, shareholding structures and voluntary disclosure in emerging MENA economies. / Sarhan, Ahmed; Ntim, Collins.

In: Journal of Accounting in Emerging Economies, Vol. 9, No. 1, 04.02.2019, p. 2-27.

Research output: Contribution to journalArticle

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