Regulatory Change and the Quality of Compliance to Mandatory Disclosure Requirements: Evidence from Bangladesh

SMC Author

A. K. M. Waresul Karim

SMC Affiliated Work

1

Status

Faculty

School

School of Economics and Business Administration

Department

Accounting

Document Type

Article

Publication Date

11-12-2007

Publication / Conference / Sponsorship

Research in Accounting Regulation

Description/Abstract

This study investigates the effectiveness of changes in the regulatory environment on the quality of compliance to mandatory disclosure requirements in Bangladesh. Statistical analysis of the Mandatory Disclosure Index, as developed in this paper using annual reports of the exchange-listed firms pre and post changes in the regulatory environment, shows a significant improvement in the quality of compliance during the more regulated time period. The size of the firm, the qualification of its accounting staff that prepares financial statements and the reputation of its auditing firm have significant positive impact on the quality of compliance. The analysis points to two additional important findings: lack of a firm's profitability does not seem to affect the quality of its compliance, and the performance of domestic firms are at par with foreign affiliated firms as far as the quality of the compliance is concerned. The findings reported in the present study lend support to the conventional notion that well packaged and timed regulations can foster sustainable development in the overall reporting environment of a country.

Keywords

Bangladesh, Mandatory Disclosure, Financial Reporting, Disclosure Index, Compliance

Scholarly

yes

Volume

20

Disciplines

Accounting | Business | Economics

Original Citation

Karim, A. W. (2008). 'Regulatory Change and the Quality of Compliance to Mandatory Disclosure Requirements: Evidence from Bangladesh. Research in Accounting Regulation

Link to Full Text

Share

COinS