Corporate boards, shareholding structures and voluntary disclosure in emerging MENA economies

Sarhan, Ahmed and Ntim, Collins G. (2019) Corporate boards, shareholding structures and voluntary disclosure in emerging MENA economies. Journal of Accounting in Emerging Economies, 9 (1). pp. 2-27. ISSN 2042-1168

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Official URL: https://doi.org/10.1108/JAEE-03-2017-0033

Abstract

Purpose:
The purpose of this paper is to investigate the level of voluntary compliance with, and disclosure of, corporate governance (CG) best practices, and the extent to which board characteristics and shareholding structures can explain discernible differences in the level of voluntary CG disclosure in a number of emerging Middle Eastern and North African (MENA) economies.

Design/methodology/approach:
The paper uses a number of multivariate regression methods, namely, ordinary least squares, weighted, non-linear, lagged-effects, two-stage least squares and fixed-effects regression techniques to analyse data collected for a sample of listed corporations in emerging MENA economies from 2009 to 2014.

Findings:
First, in general, MENA listed firms have a relatively lower level of voluntary compliance with, and disclosure of, CG practices compared to listed firms in developed countries. Second, the evidence suggests that corporate board characteristics, including board diversity, have a positive association with the level of voluntary CG disclosure. In contrast, the findings indicate that unitary board leadership structure, director shareholdings and government shareholdings negatively impact on the level of voluntary CG disclosure. The study does not, however, find any evidence to suggest that family shareholdings have any significant relationship with the level of voluntary CG disclosure. The findings are generally robust to alternative measures and potential endogeneity problems.

Originality/value:
This is one of the first empirical efforts at investigating the association between CG mechanisms and voluntary disclosure in emerging MENA economies that observably relies on a multi-theoretical framework within a longitudinal cross-country research setting.

Item Type: Article
Uncontrolled Keywords: corporate governance, voluntary disclosure, board characteristics, shareholding structures, emerging MENA economies
Subjects: N100 Business studies
N200 Management studies
Department: Faculties > Business and Law > Newcastle Business School > Accounting and Finance
Depositing User: John Coen
Date Deposited: 09 Dec 2020 15:36
Last Modified: 09 Dec 2020 15:45
URI: http://nrl.northumbria.ac.uk/id/eprint/44957

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