Relationship between Profitability and Voluntary Disclosure: A Case of Banks in Kenya

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Date
2015-11-20
Journal Title
Journal ISSN
Volume Title
Publisher
SSRN Electronic Journal
Abstract
The purpose of this article was to examine the relationship between profitability and voluntary disclosure practices in the Kenyan banking sector. To measure the extent of disclosure, an un-weighted disclosure index consisting of 40 items was applied. The study employed ordinary least squares technique to analyse the data. On average, voluntary disclosure level of the Kenyan banks was found to be at 62.8%. Results show that profitability, listing status and size of the bank are positively and significantly associated with voluntary disclosure levels. In order to improve the general level of banks disclosure, there is a need for regulatory agencies in Kenya to strengthen compliance to the existing disclosure requirements.
Description
Keywords
Profitability, Voluntary, Kenya
Citation
Aikaeli, Jehovaness and Rashid, Zuleikha, Relationship between Profitability and Voluntary Disclosure: A Case of Banks in Kenya (November 20, 2015). Available at SSRN: http://ssrn.com/abstract=2706027 or http://dx.doi.org/10.2139/ssrn.2706027