Disclosure of Voluntary Accounting Ratios by Malaysian Listed Companies
Azrul Abdullah () and
Ku Nor Izah Ku Ismail
MPRA Paper from University Library of Munich, Germany
Abstract:
Accounting ratios are believed to be of fundamental importance in financial analysis, and therefore are useful addition to financial reports. This paper examines the reporting of voluntary accounting ratio by Malaysian companies in corporate annual reports. Drawing on agency and signaling theories, this paper explores whether associations exist between company performance and voluntary disclosure of accounting ratios. In particular, associations are tested between the extent of ratio disclosure and company performance (namely profitability, liquidity, leverage, and company efficiency), size and industry. Six hypotheses are tested using data collected from 2003 annual reports of 100 Malaysian listed companies. This paper provides evidence that the extent of voluntary ratio disclosure is low; and size, industry as well as liquidity significantly influence the reporting of ratios in corporate annual reports. The implications of these findings are discussed.
Keywords: Information; Determinants; Investment; Risk-Management value-relevance; disclosures; policies; Accounting Ratios (search for similar items in EconPapers)
JEL-codes: M4 M41 (search for similar items in EconPapers)
Date: 2005, Revised 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Published in Journal of Financial Reporting & Accounting 6.1(2008): pp. 1-20
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/66534/1/MPRA_paper_66534.pdf original version (application/pdf)
Related works:
Journal Article: Disclosure of Voluntary Accounting Ratios by Malaysian Listed Companies (2008) 
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:pra:mprapa:66534
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().