An Analysis of the Determinants of Internal Control Disclosure by Multinational Corporations

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Title: An Analysis of the Determinants of Internal Control Disclosure by Multinational Corporations
Authors: Mohammed Zakaria, Nehari Talet
Date: 2014
Abstract: Purpose: The objective of this study is to analyze the content of disclosure on internal control in multinational corporations’ annual reports and to investigate the determinants of disclosure. The study questions whether there are differences in the content, volume and quality of disclosure between multinational corporations and what factors could explain these differences? Methodology: This research is based on 178 multinational corporations selected from the 2012 ranking of Global 500 published by Fortune Magazine. Content analysis was used to analyze the volume and quality of internal control information disclosed in the multinational corporations’ annual reports. The study accommodates for three disclosure measures which are: Disclosure Index (DI), Disclosure Volume (DV) and Disclosure Quality (DQ) Findings: Based on univariate and multivariate analysis, results seem to indicate that national factors are more significant in explaining the differences in disclosure than governance and operational factors. The study also proved that there is at least one significant variable under each category of factors (National, Governance and Operational) Implications: These findings could be relevant to a number of stakeholders concerned with multinational corporations’ activities and performances. Stakeholders influenced by the study are top managers of Multinational Corporation, regulatory setters and investors. The research has implications on the accounting literature by shedding light on disclosure on internal control and the internal control factors grouping.
URL: http://hdl.handle.net/10393/31811
http://dx.doi.org/10.20381/ruor-6715
CollectionThèses, 2011 - // Theses, 2011 -
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