Loading...
The Effect of Financial statement disclosure on a Company’s value
Danish, Tamara
Danish, Tamara
Citations
Altmetric:
Type
Supervisor
Date
Collections
Research Projects
Organizational Units
Journal Issue
Abstract
Study discussed the critical role of financial statement disclosure in corporate governance and finance, emphasizing its importance in providing transparency and relevant information to stakeholders. The introduction sets the stage for a deeper exploration of how financial disclosure influences a company’s perceived and actual market value. Literature Review: This section delves into existing research on the subject, highlighting three theoretical frameworks: agency theory, signalling theory, and stakeholder theory. It also examines empirical evidence demonstrating the positive relationship between financial statement disclosure and various aspects of a company's market value, such as cost of capital, analyst coverage, and financial performance. Methodology: Study is quantitative involves data collected from financial statements and annual reports of 26 listed Saudi companies over four years, segmented by year and company for detailed analysis. The methodology includes comparative analysis of financial metrics like revenue and net profit. Findings/Discussion: This section interprets the data's implications for each entity's financial health and position within the market. It discusses how transparency in financial statements can influence investor trust and confidence, impacting stock prices and overall market valuation. Conclusion: The research concludes that comprehensive and high-quality financial statement disclosure positively impacts a company's market value, cost of capital, analyst coverage, and financial performance. However, it suggests the need for further research to explore specific channels through which financial statement disclosure affects company value and the role of contextual factors.