Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms
This study examines the association between market risk disclosures (MRDs) and the investment efficiency of financial firms from six emerging markets in the Gulf Cooperation Council (GCC) region. Based on a sample of 553 firm-year observations over the 2007-2011 period, we find that MRDs are signifi...
| Main Authors: | , , , , |
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| Format: | Journal Article |
| Published: |
Wiley-Blackwell Publishing Ltd.
2016
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| Online Access: | http://hdl.handle.net/20.500.11937/39041 |
| _version_ | 1848755482372603904 |
|---|---|
| author | Al-Hadi, Ahmed Hasan, Mostafa Taylor, Grantley Hossain, M. Richardson, G. |
| author_facet | Al-Hadi, Ahmed Hasan, Mostafa Taylor, Grantley Hossain, M. Richardson, G. |
| author_sort | Al-Hadi, Ahmed |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This study examines the association between market risk disclosures (MRDs) and the investment efficiency of financial firms from six emerging markets in the Gulf Cooperation Council (GCC) region. Based on a sample of 553 firm-year observations over the 2007-2011 period, we find that MRDs are significantly and negatively associated with both under-investment and over-investment and that this association is more pronounced for larger firms. We also find that the association between MRDs and under-investment is moderated during periods of economic distress such as the Global Financial Crisis of 2008 and that the association between MRDs and over-investment is magnified during periods of reduced financial distress. Our results are consistent with the idea that MRDs reduce information asymmetry, which ultimately improves investment efficiency. We contribute to the literature in an emerging market context by providing empirical evidence on the association between MRDs and investment efficiency across six emerging GCC capital markets. This study also fills a gap in the literature by providing evidence on the factors affecting the investment efficiency of financial firms. |
| first_indexed | 2025-11-14T08:57:00Z |
| format | Journal Article |
| id | curtin-20.500.11937-39041 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:57:00Z |
| publishDate | 2016 |
| publisher | Wiley-Blackwell Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-390412018-10-16T05:59:40Z Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms Al-Hadi, Ahmed Hasan, Mostafa Taylor, Grantley Hossain, M. Richardson, G. This study examines the association between market risk disclosures (MRDs) and the investment efficiency of financial firms from six emerging markets in the Gulf Cooperation Council (GCC) region. Based on a sample of 553 firm-year observations over the 2007-2011 period, we find that MRDs are significantly and negatively associated with both under-investment and over-investment and that this association is more pronounced for larger firms. We also find that the association between MRDs and under-investment is moderated during periods of economic distress such as the Global Financial Crisis of 2008 and that the association between MRDs and over-investment is magnified during periods of reduced financial distress. Our results are consistent with the idea that MRDs reduce information asymmetry, which ultimately improves investment efficiency. We contribute to the literature in an emerging market context by providing empirical evidence on the association between MRDs and investment efficiency across six emerging GCC capital markets. This study also fills a gap in the literature by providing evidence on the factors affecting the investment efficiency of financial firms. 2016 Journal Article http://hdl.handle.net/20.500.11937/39041 10.1111/jifm.12063 Wiley-Blackwell Publishing Ltd. fulltext |
| spellingShingle | Al-Hadi, Ahmed Hasan, Mostafa Taylor, Grantley Hossain, M. Richardson, G. Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms |
| title | Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms |
| title_full | Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms |
| title_fullStr | Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms |
| title_full_unstemmed | Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms |
| title_short | Market Risk Disclosures and Investment Efficiency: International Evidence from the Gulf Cooperation Council Financial Firms |
| title_sort | market risk disclosures and investment efficiency: international evidence from the gulf cooperation council financial firms |
| url | http://hdl.handle.net/20.500.11937/39041 |