TY - JOUR
T1 - Disclosure of forward-looking information
T2 - does overlapping audit committee membership matter?
AU - Al Lawati, Hidaya
AU - Hussainey, Khaled
N1 - Publisher Copyright:
© 2023 Inderscience Enterprises Ltd.
PY - 2023
Y1 - 2023
N2 - We examine whether overlapping audit committee (AC) membership affects the forward-looking content of the chairman reports. We use content analysis to measure levels of forward-looking disclosure (FLD) for forty-eight bank-year observations from eight banks listed on Muscat Securities Market in Oman for the period 2014-2019. Our regression analysis shows that overlapping AC membership positively affects FLD. The evidence from this study suggests that a consideration of AC directors' attributes (e.g., overcommitted AC members) is needed to understand their role in the boardroom or in the subcommittees. An implication of the result is that the Omani corporate governance code should provide guidelines on the type and proportion of the overlapping AC membership. Furthermore, the code could encourage AC members to be overlapped across different committees as this could have a positive impact on corporate disclosure practice. Our study has demonstrated, for the first time, that overlapped AC members enhance the forward-looking content of chairman reports.
AB - We examine whether overlapping audit committee (AC) membership affects the forward-looking content of the chairman reports. We use content analysis to measure levels of forward-looking disclosure (FLD) for forty-eight bank-year observations from eight banks listed on Muscat Securities Market in Oman for the period 2014-2019. Our regression analysis shows that overlapping AC membership positively affects FLD. The evidence from this study suggests that a consideration of AC directors' attributes (e.g., overcommitted AC members) is needed to understand their role in the boardroom or in the subcommittees. An implication of the result is that the Omani corporate governance code should provide guidelines on the type and proportion of the overlapping AC membership. Furthermore, the code could encourage AC members to be overlapped across different committees as this could have a positive impact on corporate disclosure practice. Our study has demonstrated, for the first time, that overlapped AC members enhance the forward-looking content of chairman reports.
KW - chairman reports
KW - content analysis
KW - FLD
KW - forward-looking disclosure
KW - Oman.
KW - overlapping audit committee membership
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U2 - 10.1504/IJAAPE.2023.133041
DO - 10.1504/IJAAPE.2023.133041
M3 - Article
AN - SCOPUS:85171533722
SN - 1740-8008
VL - 19
SP - 328
EP - 359
JO - International Journal of Accounting, Auditing and Performance Evaluation
JF - International Journal of Accounting, Auditing and Performance Evaluation
IS - 3
ER -