Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries

Ahmed Sarhan, Collins Ntim

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Purpose: This paper aims to investigate the level of compliance with, and disclosure of, corporate governance best practice recommendations and the firm- and country-level factors that can explain discernible differences in the level of compliance with, and disclosure of, corporate governance best practice recommendations in a number of Middle Eastern and North African (MENA) countries. Design/methodology/approach: The authors use the widely used content analysis technique to examine the level of compliance with, and disclosure of, corporate governance best practice recommendations in a sample of listed corporations in MENA countries. In addition, the authors use the ordinary least square multiple regression analysis technique to examine the firm- and country-level antecedents of the level of compliance with, and disclosure of, corporate governance best practice recommendations. The findings are generally robust to different types of firm- and country-level factors, alternative measures and potential endogeneity problems. Findings: The findings of this study are two-fold. First, the level of voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations is low and differs substantially across firms. Second, the evidence suggests that firm- and country-level factors, including religiosity, national governance quality and macroeconomic factors, have a positive and significant impact on voluntary compliance with, and disclosure of, corporate governance best practice recommendations. Originality/value: To the best of the authors’ knowledge, this paper is the first to examine both the potential firm- and country-level factors affecting voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations from a neo-institutional theoretical perspective. The results of our study provide regulators and policymakers with the impetus to encourage greater efforts towards pursuing reforms that seek to improve national governance quality, economic environment and positive religious practices.

LanguageEnglish
Pages558-585
Number of pages28
JournalManagerial Auditing Journal
Volume33
Issue number6-7
Early online date14 Sep 2018
DOIs
Publication statusPublished - 2018

Fingerprint

Best practice
Corporate governance
Disclosure
African countries
Factors
Governance
Africa
Design methodology
Ordinary least squares
Religiosity
Multiple regression analysis
Endogeneity
Content analysis
Politicians
Macroeconomic factors
Economic environment

Cite this

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title = "Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries",
abstract = "Purpose: This paper aims to investigate the level of compliance with, and disclosure of, corporate governance best practice recommendations and the firm- and country-level factors that can explain discernible differences in the level of compliance with, and disclosure of, corporate governance best practice recommendations in a number of Middle Eastern and North African (MENA) countries. Design/methodology/approach: The authors use the widely used content analysis technique to examine the level of compliance with, and disclosure of, corporate governance best practice recommendations in a sample of listed corporations in MENA countries. In addition, the authors use the ordinary least square multiple regression analysis technique to examine the firm- and country-level antecedents of the level of compliance with, and disclosure of, corporate governance best practice recommendations. The findings are generally robust to different types of firm- and country-level factors, alternative measures and potential endogeneity problems. Findings: The findings of this study are two-fold. First, the level of voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations is low and differs substantially across firms. Second, the evidence suggests that firm- and country-level factors, including religiosity, national governance quality and macroeconomic factors, have a positive and significant impact on voluntary compliance with, and disclosure of, corporate governance best practice recommendations. Originality/value: To the best of the authors’ knowledge, this paper is the first to examine both the potential firm- and country-level factors affecting voluntary compliance with, and disclosure of, corporate governance best practice recommendations among MENA listed corporations from a neo-institutional theoretical perspective. The results of our study provide regulators and policymakers with the impetus to encourage greater efforts towards pursuing reforms that seek to improve national governance quality, economic environment and positive religious practices.",
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Firm- and country-level antecedents of corporate governance compliance and disclosure in MENA countries. / Sarhan, Ahmed; Ntim, Collins.

In: Managerial Auditing Journal, Vol. 33, No. 6-7, 2018, p. 558-585.

Research output: Contribution to journalArticle

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JO - Managerial Auditing Journal

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