Browsing by Author "James Boyd, McFie (Dr.)"
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- ItemHigh quality financial reporting: the case of the Nairobi stock exchangeJames Boyd, McFie (Dr.); Weetman, Pauline (Prof.)This thesis investigates, firstly, the meaning of the phrase “high quality financial reporting.” The use of the phrase in the academic literature, and by professional and regulatory bodies, is examined critically to contribute to a deeper understanding of the phrase.Disclosure in the annual reports of all 47 companies listed on the Nairobi Stock Exchange is examined to see if it can be described as “high quality”. “High quality disclosure” is measured in three ways: (1) a disclosure index is developed to measure compliance with International Financial Reporting Standards (this index is also used to measure disclosure in the interim report); (2) a disclosure index developed by Standard and Poor’s to measure Transparency and Disclosure is used; (3) these are compared with the scores achieved by the same annual reports in the Financial Reporting Excellence Award 2003, decided by adjudicators in Kenya.The thesis also investigates the association between selected corporate characteristics and “high quality disclosure”. Testable hypotheses are formulated based on disclosure theories and prior studies: univariate and linear regression analysis are used to test whether significant independent variables explain “high quality disclosure”, with the aim of contributing to understanding the applicability of disclosure theories to a capital market in a developing country. Interview research is employed to explore further matters related to “high quality financial reporting” in this developing country setting and to complement the quantitative analysis, so as to contribute to understanding the relevance of International Financial Reporting Standards in achieving high quality disclosure in this capital market. Conclusions are made as to the usefulness of accounting theories and other influences in explaining “high quality disclosure” by Nairobi Stock Exchange companies. A definition of “high quality disclosure” is proposed. The implications of the research, its contribution and its limitations are discussed. Suggestions for further research are presented.
- ItemThe Relationship between corporate governance and audit fees : a case study of non-financial companies listed on the Nairobi Securities ExchangeNyamosi, Wilson Omwoyo; James Boyd, McFie (Dr.)This thesis consisted of two empirical studies. First, it examined the relationship between corporate governance mechanisms (relating to boards’ of directors characteristics) and audit fees in the Kenyan context. Secondly, the study also examined compliance with the corporate governance disclosure requirements for listed companies in Kenya. The purpose of the study was firstly, to contribute to understanding how various boards’ of directors characteristics as required by the Capital Markets Act, Chapter 485A of the Laws of Kenya, (2002), affect external audit fees in Kenya. Secondly, the study sought to explore corporate governance disclosure aspects of listed companies in Kenya. The study adopted the pooled ordinary least squares regression model for a sample of thirty non-financial listed companies out of a population of fifty-three companies listed on the Nairobi Securities Exchange at the time the study was done. The multivariate regression results suggest that board expertise and board size are positively related to audit fees. The other characteristics of board independence and board diligence provide inconsistent results with audit fees. The control variables of total assets and complexity are significant; the financial risk and company leverage variables are found to be insignificantly related to audit fees. On the adequacy of corporate governance disclosure by listed companies in Kenya, a good system of corporate governance requires a good level of disclosure and adequate information to reduce information asymmetries between parties. The degree of disclosure results show that eight companies, that is, 26.6% have a corporate governance disclosure index of between 81% and 100%. This means that 73.4% of the companies in the sample did not attain the adequacy level; thus, the corporate governance disclosure level in Kenya is low. With regard to the relationship between boards’ of directors characteristics and the level of corporate governance disclosure compliance by listed companies in the Kenyan securities market, the multivariate regression results suggest that board independence is positively related to the level of corporate governance disclosure. The study finds no evidence that board diligence, board expertise and board size are related to the level of corporate governance disclosure compliance by listed companies. The control variables of total assets, company leverage and industry type 1 are significant; industry type 2, industry type 3 and industry type 4 are found to be insignificantly related to the level of corporate governance disclosure.