Year: 2011
Type: article
Abstract: The purpose of this study is to evaluate both the segment disclosure practice of firms listed on the Kuwait Stock Exchange (KSE) and the factors that influence their level of segment disclosures. Consistent with prior disclosure research, the level of segment disclosure is examined using a disclosure index based on the mandatory requirements of International Accounting Standard (IAS) 14 (Segment Reporting). The results show that the average level of segment disclosure in a sample of 123 KSE-listed firms in 2008 was 56%%, ranging from 18% to 94%. Users of KSE-listed firms financial statements might reasonably expect greater segment disclosures from larger, older, highly leveraged, and profitable KSE-listed firms, as well as from firms audited by a Big-4 audit firm. The findings provide feedback to the regulatory and enforcement bodies in Kuwait on current segment disclosure practice among KSE-listed companies and the factors that influence the level of segment disclosures. The noticeable variation in the level of segment disclosure among listed firms suggests a need for further monitoring of the enforcement of required segment disclosure.
Authors: Mishari M. Alfaraih, Faisal S. Alanezi
Institution: Public Authority for Applied Education and Training
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2098327237