An analysis of the impact of IFRS 7 disclosures on corporate risk management among publicly listed manufacturing corporations in ASEAN countries from 2008 to 2012

• Main Authors: Chua, Jerome Wayne V., Dural, Eudes Joshan, Libago, Ronald G., Virata, Ana Margarita C.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: International business enterprises > Accounting > Standards; Corporations > Finance > Management; Risk management; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10524
• Institution: De La Salle University

The study deals with analyzing the impact of a firm's compliance with disclosure requirements to asymmetric information in profitability, marketability of shares, and firm valuation. It aims to analyze the effects of firm compliance relating to disclosure requirements set by relevant International Financial Reporting Standards on hedge accounting and financial risk management to the level of asymmetric information present in manufacturing firms. Various panel regression models were used to determine whether the level of compliance on financial risk management and hedging disclosures of IFRS (represented by the disclosure index), as well as the study's control variables (industry rating, profit margin, capital expenditure per share, long term liabilities per share, dividends per share, book value per share, and current ratio) show significant financial impact on asymmetric information present in a company's firm valuation, share marketability and profitability, respectively. Based on the results provided by the study, it was found out that the compliance index has a significant financial effect on asymmetric information for all the three aspects. It also shows that at least one of the control variables are significant for each equation, indicating that the model can be relied upon to interpret relationships between the control variable(s) and asymmetric information. In addition, the results also show that Philippine companies exhibit a higher tendency to have asymmetric information as compared to the other countries in the study (Malaysia, Singapore), with Singapore exhibiting the lowest tendency.