Table 2.04 Summary of Studies Investigating the Association between Level of Disclosure and Leverage S/N Author(s) Proxy Reported Significant(Sig)/Non Sign Significant(Nsig) 1 Chow and Book value of debt + Nsig divided by size. Ratio of debt to + Sig 2 Malone et al(1993) equity Debt/equity + Nsig 3 Wallace et al(1994) Debt/equity - Nsig 4 Meek et al(1995) Debt * 100/Total + Nsig 5 Raffournier(1995) assets Total + Nsig 6 Inchausti(1997) liability/equity 7 Tower et al (1999) Ratio of Long term + Nsig debt to Total Equity 8 Depoers (2000) Debt to total assets + Nsig 9 Haniffa and Cooke Debt ratio : Total + Nsig (2001) debt to Total assets 10 Bujaki and Total liability/ + Sig McConomy (2002) Total assets 11 Camfferman and Debt to common + for 1st Sig for 1 category and Cooke (2002) equity category Nsig for 1 category and for – 2nd category 12 Ferguson, Lam and Long term liability + Sig(only for financial Lee(2002) to book value of information) shareholders’ equity 13 Naser et al. (2002) Equity ratio + Sig 14 Eng and Mak (2003) Debt ratio - Sig 15 Ali et al(2004) Total debt to total - Nsig tangible asset 16 Prencipe (2004) Financial + Sig liabilities/ total assets 17 Al-Shammari (2005) Book value of + Sig debt/(Mkt value of equity + book value of debt) 18 Barako (2007) Debt ratio :Total + for 3 Sig for 1 category, debt to Total Asset categories, - Nsig for 3 categories for 1 category
Table 2.04 Summary of Studies Investigating the Association between Level of Disclosure and Leverage S/N Author(s) Proxy Reported Sign Significant(Sig)/Non Significant(Nsig) 1 Chow and Book value of debt divided by size. + Nsig 2 Malone et al(1993) Ratio of debt to equity + Sig 3 Wallace et al(1994) Debt/equity + Nsig 4 Meek et al(1995) Debt/equity - Nsig 5 Raffournier(1995) Debt * 100/Total assets + Nsig 6 Inchausti(1997) Total liability/equity + Nsig 7 Tower et al (1999) Ratio of Long term debt to Total Equity + Nsig 8 Depoers (2000) Debt to total assets + Nsig 9 Haniffa and Cooke (2001) Debt ratio : Total debt to Total assets + Nsig 10 Bujaki and McConomy (2002) Total liability/ Total assets + Sig 11 Camfferman and Cooke (2002) Debt to common equity + for 1st category and – for 2nd category Sig for 1 category and Nsig for 1 category 12 Ferguson, Lam and Lee(2002) Long term liability to book value of shareholders’ equity + Sig(only for financial information) 13 Naser et al. (2002) Equity ratio + Sig 14 Eng and Mak (2003) Debt ratio - Sig 15 Ali et al(2004) Total debt to total tangible asset - Nsig 16 Prencipe (2004) Financial liabilities/ total assets + Sig 17 Al-Shammari (2005) Book value of debt/(Mkt value of equity + book value of debt) + Sig 18 Barako (2007) Debt ratio :Total debt to Total Asset + for 3 categories, - for 1 category Sig for 1 category, Nsig for 3 categories
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