Title: Factors affecting financial instruments disclosure in emerging economies: the case of Jordan

Authors: Yasean Tahat; Ghassan H. Mardini; David M. Power

Addresses: Gulf University for Science and Technology, College of Business and Administration, Kuwait ' College of Business and Economics, Qatar University, Qatar ' School of Social Sciences, University of Dundee, UK

Abstract: The current study investigates factors affecting financial instruments (FI) disclosure for a sample of Jordanian listed companies (82 firms) over two consecutive years (2013 and 2014). An un-weighted disclosure index is used to examine the extent of FI disclosure. In addition, the study employs a number of multiple regression models to examine the determinants of FI disclosure. The findings indicate that the level of FI disclosure provided by the sample firms is relatively low with only 52% of FI-related items being supplied. In addition, the results illustrate that the level of FI-related disclosure has a statistically positive association with firm size, the audit firm employed and corporate governance attributes. However, the current study fails to document significant associations between FI disclosure and firm industry or ownership structure variables. This research provides a number of insights for policy makers. First, the results of the current study could help the IASB when revisiting FI-related accounting standards to consider an emerging country's perspective. In addition, it provides some insights to accounting regulators in Jordan about how Jordanian listed firms respond to IFRS 7 requirements.

Keywords: financial instruments; corporate disclosure; corporate governance; Jordan.

DOI: 10.1504/AAJFA.2017.085546

Afro-Asian Journal of Finance and Accounting, 2017 Vol.7 No.3, pp.255 - 280

Received: 07 Apr 2016
Accepted: 16 Nov 2016

Published online: 12 Jul 2017 *

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