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Introduction
Previous studies have reported that derivatives are often used by
Introduction (Cont)
Since derivatives are held in many business transactions together
Introduction(Cont)
Disclosure of financial instruments (i.e. derivatives) by business
Introduction(Cont)
Previous studies also explained several reasons (factors) that associate on
The existence of RMC and Audit committee (e.g Birt et al. 2013; Hassan et al.
2012)
Problem Statement
Quality of hedging activities information in company annual
Research Question
What are the characteristics of the RMC that
influence the extent of information on hedging
activities disclosure in Malaysian listed companies?
Objective
To determine the relationship between RMCs characteristics and the extent of
information on hedging activities disclosure of the Malaysian listed companies.
Literature review
Studies on disclosure of hedging activities information
Lack of studies- only few studies have specifically addressed the disclosure of
information on hedging activities.
The extent of disclosures were reported less satisfactory (e.g. Birt et al 2013,
Chalmer and Godfrey 2004)
Factors associated with disclosure of financial instruments
Firm characteristics and corporate governance mechanisms
Studies on financial instruments disclosure in Malaysia
Hassan et al., (2012)
Abdullah and Chen, (2010)
Norkhairul Hafiz, (2003)
Ismail and Abdul Rahman, (2011)
Adznan and Puat Nelson (2014)
Methodology
Measurement(Dependent Variable)
This study measure the dependent variable (EHAD) based on the
disclosure score.
Disclosure checklist is developed based two types of disclosures, i.e.,
mandatory and discretionary. (28 items)
The score of 1 for each dimension of hedging activities disclosure will be assigned in the
information:
Methodology (Cont)
Measurement of Explanatory Variables
Methodology (Cont)
Data and Sample Selection
This study use secondary data collected from two separate sources:
Methodology (Cont)
Model Specification
Findings
Descriptive Statistics
Findings (Cont)
Regression Results
Conclusion
The objective of this study is to examine the influence of risk
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