Corporate reporting and disclosures in the emerging capital market of Kuwait: the perceptions of users and preparers

Issa Dawd (Lead / Corresponding author), Bruce Burton, Theresa Dunne, Hesham Almujamed

    Research output: Contribution to journalArticle

    1 Citation (Scopus)
    2 Downloads (Pure)

    Abstract

    The objective of this paper is to investigate the perceptions of users and preparers regarding financial disclosure practices in annual reports of Kuwaiti listed firms. To measure participants’ views, a questionnaire survey was distributed in Kuwait between October and December 2012, to preparers (financial managers) and users (financial analysts) within Kuwaiti listed companies. The study compares between the perceptions of financial managers and financial analysts regarding disclosing information in corporate annual reports as well as the main obstacles facing the disclosure process and what the problems restricting the use of companies’ annual reports. The study also seeks to investigate whether there is a perceived need for improving the usefulness of Kuwaiti companies’ annual reports for decision-making. The results, based on 137 responses, indicate that accounting practices in Kuwaiti firms are firmly rooted in a decision-usefulness tradition with management and the board of directors viewed as the key audience for reporting information. Indeed, the annual reports of Kuwaiti listed companies are perceived as the most important sources of information. On the whole both users and preparers shared similar concerns regarding the volume of information contained within annual reports; however, their views differed in terms of identifying potential solutions. The results of the study are likely to have implications for decision makers, the academic community and accounting standard setters.

    Original languageEnglish
    Pages (from-to)61-72
    Number of pages12
    JournalInternational Journal of Disclosure and Governance
    Volume12
    Issue number2
    Early online date23 Feb 2018
    DOIs
    Publication statusPublished - May 2018

    Fingerprint

    Emerging capital markets
    Corporate disclosure
    Annual reports
    Corporate reporting
    Kuwait
    Managers
    Financial analysts
    Usefulness
    Listed companies
    Decision making
    Accounting standards
    Accounting practices
    Financial disclosure
    Board of directors
    Sources of information
    Corporate annual reports
    Questionnaire survey
    Decision maker
    Disclosure

    Keywords

    • Disclosure
    • Kuwait
    • Questionnaire
    • Statistical analysis
    • Users’ and preparers’ perceptions

    Cite this

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    title = "Corporate reporting and disclosures in the emerging capital market of Kuwait: the perceptions of users and preparers",
    abstract = "The objective of this paper is to investigate the perceptions of users and preparers regarding financial disclosure practices in annual reports of Kuwaiti listed firms. To measure participants’ views, a questionnaire survey was distributed in Kuwait between October and December 2012, to preparers (financial managers) and users (financial analysts) within Kuwaiti listed companies. The study compares between the perceptions of financial managers and financial analysts regarding disclosing information in corporate annual reports as well as the main obstacles facing the disclosure process and what the problems restricting the use of companies’ annual reports. The study also seeks to investigate whether there is a perceived need for improving the usefulness of Kuwaiti companies’ annual reports for decision-making. The results, based on 137 responses, indicate that accounting practices in Kuwaiti firms are firmly rooted in a decision-usefulness tradition with management and the board of directors viewed as the key audience for reporting information. Indeed, the annual reports of Kuwaiti listed companies are perceived as the most important sources of information. On the whole both users and preparers shared similar concerns regarding the volume of information contained within annual reports; however, their views differed in terms of identifying potential solutions. The results of the study are likely to have implications for decision makers, the academic community and accounting standard setters.",
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    Corporate reporting and disclosures in the emerging capital market of Kuwait : the perceptions of users and preparers. / Dawd, Issa (Lead / Corresponding author); Burton, Bruce; Dunne, Theresa; Almujamed, Hesham.

    In: International Journal of Disclosure and Governance, Vol. 12, No. 2, 05.2018, p. 61-72.

    Research output: Contribution to journalArticle

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