The influence of company characteristics and accounting regulation on information disclosed in annual reports
KeywordsDisclosure in accounting ; Annual reports ; Firm characteristics ; Impact on disclosure index
The main purpose of this paper is to evaluate the level of disclosure in the annual reports of Greek companies and to empirically investigate the hypothesized impact of several firm characteristics on the extent of mandatory disclosure. A disclosure checklist consisting of 88 mandatory items was developed to assess the level of disclosure in the 2014 annual reports of 32 Greek firms. The sample of the 32 firms is listed in Athens stock Exchange excluding financial institutions, insurance companies and investment funds-listed on it. The correlation between the level of disclosure and some firm characteristics was examined using multiple linear regression analysis. The results revealed that profitability was significant negatively associated with the disclosure level. The remaining variables such as size, age, leverage, auditing and industry type were found to be insignificant in explaining the variation of mandatory disclosures. The outcome of this study is undoubtedly of great concern to the investment community at large to assist in evaluating the extend of mandatory disclosure by Greek firms and explaining the variation of disclosure in light of firm-specific characteristics.