Market risk disclosures and corporate governance structure: Evidence from GCC financial firms

© 2017 Board of Trustees of the University of Illinois. In this study, we examine the relationship between corporate governance and the disclosure of market risk among financial firms from the Gulf Cooperation Council (GCC) region between 2007 and 2011. Using a comprehensive measure of the disclosur...

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Main Authors: Al-Hadi, Al-Hadi Ahmed, Al-Yahyaee, K., Hussain, S., Taylor, Grantley
Format: Journal Article
Published: Elsevier BV 2019
Online Access:http://hdl.handle.net/20.500.11937/62556
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author Al-Hadi, Al-Hadi Ahmed
Al-Yahyaee, K.
Hussain, S.
Taylor, Grantley
author_facet Al-Hadi, Al-Hadi Ahmed
Al-Yahyaee, K.
Hussain, S.
Taylor, Grantley
author_sort Al-Hadi, Al-Hadi Ahmed
building Curtin Institutional Repository
collection Online Access
description © 2017 Board of Trustees of the University of Illinois. In this study, we examine the relationship between corporate governance and the disclosure of market risk among financial firms from the Gulf Cooperation Council (GCC) region between 2007 and 2011. Using a comprehensive measure of the disclosure of market risk, our regression results suggest that the level of market risk disclosure is positively and significantly associated with the strength of a firm's corporate governance structure. Economically, the regression coefficient implies that a 3.25% increase in market risk disclosures is associated with a one standard deviation change in the strength of corporate governance. In addition, when we decompose our corporate governance index into its constituent items, we find that directors' independence and the dual roles of the CEO and chairman of the board reduce the extent and quality of market risk disclosures. Our results are robust to alternative specifications and endogeneity tests.
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publishDate 2019
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spelling curtin-20.500.11937-625562020-01-17T05:23:11Z Market risk disclosures and corporate governance structure: Evidence from GCC financial firms Al-Hadi, Al-Hadi Ahmed Al-Yahyaee, K. Hussain, S. Taylor, Grantley © 2017 Board of Trustees of the University of Illinois. In this study, we examine the relationship between corporate governance and the disclosure of market risk among financial firms from the Gulf Cooperation Council (GCC) region between 2007 and 2011. Using a comprehensive measure of the disclosure of market risk, our regression results suggest that the level of market risk disclosure is positively and significantly associated with the strength of a firm's corporate governance structure. Economically, the regression coefficient implies that a 3.25% increase in market risk disclosures is associated with a one standard deviation change in the strength of corporate governance. In addition, when we decompose our corporate governance index into its constituent items, we find that directors' independence and the dual roles of the CEO and chairman of the board reduce the extent and quality of market risk disclosures. Our results are robust to alternative specifications and endogeneity tests. 2019 Journal Article http://hdl.handle.net/20.500.11937/62556 10.1016/j.qref.2017.11.008 Elsevier BV restricted
spellingShingle Al-Hadi, Al-Hadi Ahmed
Al-Yahyaee, K.
Hussain, S.
Taylor, Grantley
Market risk disclosures and corporate governance structure: Evidence from GCC financial firms
title Market risk disclosures and corporate governance structure: Evidence from GCC financial firms
title_full Market risk disclosures and corporate governance structure: Evidence from GCC financial firms
title_fullStr Market risk disclosures and corporate governance structure: Evidence from GCC financial firms
title_full_unstemmed Market risk disclosures and corporate governance structure: Evidence from GCC financial firms
title_short Market risk disclosures and corporate governance structure: Evidence from GCC financial firms
title_sort market risk disclosures and corporate governance structure: evidence from gcc financial firms
url http://hdl.handle.net/20.500.11937/62556