Title: Factors influencing FRS 114 segmental reporting: evidence from Malaysia

Authors: Mohammad Talha, Abdullah Sallehhuddin, Yaser Ahmad Fallatah

Addresses: Department of Accounting and MIS, King Fahd University of Petroleum and Minerals, KFUPM Box 366, Dhahran 31261, Saudi Arabia. ' Department of Accounting, Faculty of Business and Law, Multimedia University, Jalan Ayer Keroh Lama, 75 450 Ayer Keroh, Melaka, Malaysia. ' Department of Accounting and MIS, King Fahd University of Petroleum and Minerals, KFUPM Box 796, Dhahran 31261 Saudi Arabia

Abstract: Employing 451 annual reports of 2006 from Malaysian public listed companies, this study attempts to investigate the organisational factors like company size, its listing status, financial leverage and industrial membership that influence the disclosure of segmental information under the jurisdiction of new FRS 114 (segment reporting). The study is relevant to the introduction of new accounting standard governing the segmental information disclosure in Malaysia. Using non-parametric tests, the study concludes that except for the company size, its financial leverage and industrial membership do have a significant influence on segmental disclosure. The results of this study can be expanded in future for comparing similar variables of public listed companies of other emerging economies.

Keywords: segmental reporting; financial reporting; FRS 114; Malaysia; financial accounting; annual reports; organisational factors; accounting standards; information disclosure; public listed companies.

DOI: 10.1504/IJMFA.2008.021241

International Journal of Managerial and Financial Accounting, 2008 Vol.1 No.2, pp.184 - 198

Published online: 13 Nov 2008 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article