Firm-Specific Characteristics and Corporate Financial Disclosure: Evidence from an Emerging Market
This study aims to empirically investigate the association between firm-specific characteristics and corporate financial disclosure among Kuwait Stock Exchange (KSE)-listed firms. Consistent with prior disclosure research, the extent of corporate disclosures among all KSE-listed firms in 2010 was measured using a selfconstructed disclosure index. The results show that the mean level of mandatory disclosures for all KSE-listed firms in 2010 was 74% and ranged from 41–95%. The regression results suggest that older, highly leveraged, larger, and profitable KSElisted firms are associated with high levels of disclosures. Importantly, the results reveal significant variations in disclosure levels across the three possible auditor combinations, implying the importance of high quality and rigorous external audits in promoting corporate disclosures. The study contributes to the extant literature by extending corporate disclosure research into the Kuwaiti emerging market that comprise different economic, social, political, and cultural characteristics.