Measurement and Analysis of Disclosure Level: The Case of Bangladesh
follows.
Disclosure Position
SN
Company Name
CV
Rank
Comments
1
Heidelberg Cement Bangladesh Ltd.
0.12
1
More
consistent Companies
2
Confidence Cement Ltd.
0.14
2
3
Apex Foods Ltd.
4
Libra Infusions Ltd.
0.17
3
5
Square Pharmaceuticals ltd.
0.18
4
6
BEXTEX Limited.
0.19
5
7
Gulf Foods Ltd.
0.20
6
8
The Ibn Sina Pharmaceutical Industry Ltd.
0.21
7
Less
consistent Companies
9
Fu-Wang Foods Ltd.
0.22
8
10
Apex Weaving and Finishing Ltd.
11
Alltex Industries Ltd.
12
Aramit cement limited .
0.24
9
13
Lafrage Surma Cement Ltd.
14
Fine Foods Ltd.
15
Beximco Pharnaceuticals Ltd.
0.26
10
16
Orion Infusion Ltd.
17
Saiham Textile Mills Ltd.
0.33
11
18
Meghna Cement Mills Ltd.
19
Rahima Foods Corporation Ltd.
20
H.R. Textile Mills Ltd.
0.46
12
Intention of the sample companies
The following table was drawn and filled with relevant data in order to develop a picture of intention of sample companies so that researcher could develop a conclusion on the basis of data analysis at the end.
Disclosure Position
SN
Disclosure Section
CV
Rank
Comments
1
General Disclosure
0.18
1
More Consistent Disclosure Section
2
Balance Sheet
3
Income Statement Disclosure
0.19
2
4
Cash Flow Statement
0.20
3
5
Company Profile Disclosure
0.22
4
Less Consistent Disclosure Section
6
Accounting Policies Disclosure
0.23
5
7
Directors report Disclosure
0.25
6
8
Financial Highlight Disclosure
0.37
7
From the above table it is clear that sample companies are disclosing information in their annual reports is mandatory pattern which is regulated by the regulating authority. Whereas, voluntary disclosure is very much important to assess the past performance and future trends of the organization. There is no other single source of information for shareholders except annual reports. It is the ethical duty of management to secure the investment of the shareholders by covey all kind of information to them. That’s why all kind of information either mandatory or voluntary is equally important to the shareholders. Part of information can not provide a concrete picture of a company. In order to protect the interest of shareholders management should provide all kind of information ethically as they (shareholders) are original owner of the company. They have every right to have all kind of information. In Bangladesh shareholders do not rely on annual reports and hence this report rarely used in the capital markets.
The End
REFERENCES
Abd-Elsalam,O and Weetman, P (2003) Introduced International Accounting Standards
to an emerging Capital Market. Journal of International Accounting,Auditing&Taxation,12,63-84.
Al-Mulhem,A,(1997) An Empirical Investigation of the Level of Financial Disclosure by
Saudi Arabian Corporation, unpublished PhD thesis, University of Hull.
Coombs,H and Tayib,M(1998) Developing a Disclosure Index for the Local
Authority,In:the Asian Pacific Interdisciplinary Research in Accounting Conference,August 1998, Osaka, Japan
Hussey,R (1999) Dictionary of Accounting, 2ed.Oxford: Oxford University Press.
Ellabbar, K and Havard, T (2005) The Accounting Disclosure in Developing Countries: a
comparative study of Libyan & Egyptian construction companies. In: Khosrowshahi,F (Ed.),21st Annual ARCOM Conference, 7-9 September 2005, SOAS, University of London. Association of Researchers in Construction