The determinants of forward‐looking information in annual reports of UAE companies

Khaled Aljifri and Khaled Hussainey ()

Managerial Auditing Journal, 2007, vol. 22, issue 9, 881-894

Abstract: Purpose - This paper aims to empirically explore the underlying factors that may affect the extent to which forward‐looking information is disclosed. Design/methodology/approach - This study uses a list of forward‐looking keywords to demonstrate the differences, if any, in the level of disclosure among firms and between sectors. The sample includes 46 companies listed in either the Dubai financial market or the Abu Dubai securities market. Statistical analysis is performed using a backward regression. Findings - Debt ratio and profitability are found to be significant; however, sector type, firm size, and auditor size are found to have insignificant association with the level of forward‐looking information disclosed in UAE annual reports. Practical implications - A number of users, such as investors, lenders, and auditors, may find these results beneficial. These users may consider the results of this study when they are dealing with firms that have low profitability and high financial risk. Accordingly, they may wish to extend their investigations and verify such reporting practices. By doing this, the quality of information that is available to the public may be enhanced; and hence, users of annual reports may be better served. Originality/value - It is important to note that the association between the extent of disclosure and the selected corporate attributes is still ambiguous. There are a very limited number of studies that have examined disclosure of forward‐looking information in developing countries and even fewer such studies may be found in the Middle Eastern countries. To the best of the one's knowledge, no study yet has examined the forward‐looking information disclosure issues in the UAE or Middle Eastern countries.

Keywords: Disclosure; Annual reports; Emerging markets; United Arab Emirates (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:02686900710829390

DOI: 10.1108/02686900710829390

Access Statistics for this article

Managerial Auditing Journal is currently edited by Professor Jie Zhou

More articles in Managerial Auditing Journal from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().