Abstract:
This research investigates the extent to which firms listed on the Ghana Stock Exchange are complying with IAS 1. The research examined key relationship between firm size, profitability, debt ratio, liquidity, audit firm size. The purpose was to determine how these firm characteristics affect or influence their level of disclosure in annual financial reporting. The objectives were to identify the extent of voluntary disclosure in financial statements of listed companies on the Ghana Stock Exchange, identify the relationship between firm characteristics- firm size, profitability, debt ratio, liquidity and audit firm size, and financial information disclosure and also to identify the extent to which the firm characteristics affect disclosure.
Description:
Internationalization of economic trade and globalization of businesses is on the ascendency. Consequently, financial statements prepared according to a nation’s local accounting system may hardly meet the needs of investors, business partners, financiers and decision-makers who are conversant with international standards. Meanwhile developing and emerging markets are the target of the world’s leading industries that are operating in the saturated western countries. To better undertake their activities in developing countries; they must adopt International Accounting Standards that suit needs (Zeghal and Mhedhbi, 2006). This led to the developing of International Accounting Standards to establish standardization in how financial statements are prepared to ensure comparability.
