Table 2.03 Summary of Studies Investigating the Association between Level of Disclosure and Profitability S/N Author(s) Proxy Reported Significant(Sig)/Non Sign Significant(Nsig) Rate of return + Sig 1 Singhvi (1968) Rate of return + Sig 2 Singhvi and Earnings + Sig Desai(1971) margin Ratio of net + Nsig 3 McNally et al income to total (1982) assets Net income to + Nsig 4 Malone et al(1993) net sales Earning to + Nsig 5 Wallace et al(1994) sales Return on + Nsig 6 Meek et al (1995) Assets Net income * + Sig(moderate) 7 Raffournier(1995) 100/net worth Profit margin - Sig 8 Wallace and Naser(1995) Operating - Nsig 9 Inchausti(1997) profit/total assets Net Not tested income/equity 10 Owusu-Ansah Returns on + Sig (1998) capital employed 11 Tower et al (1999) Ratio of + Nsig Profit/Total Assets 12 Haniffa and Cooke Return on + Sig (2002) Equity i.e net income to total owners equity 13 Naser et al(2002) Return on + Nsig Equity Profit margin + Sig 14 Camfferman and Net Income + for 1 st Sig for 1 category and Cooke(2002) margin category Nsig for 1 category and for – 2nd category
Table 2.03 Summary of Studies Investigating the Association between Level of Disclosure and Profitability S/N Author(s) Proxy Reported Sign Significant(Sig)/Non Significant(Nsig) 1 Singhvi (1968) Rate of return + Sig 2 Singhvi and Desai(1971) Rate of return + Sig Earnings margin + Sig 3 McNally et al (1982) Ratio of net income to total assets + Nsig 4 Malone et al(1993) Net income to net sales + Nsig 5 Wallace et al(1994) Earning to sales + Nsig 6 Meek et al (1995) Return on Assets + Nsig 7 Raffournier(1995) Net income * 100/net worth + Sig(moderate) 8 Wallace and Naser(1995) Profit margin - Sig 9 Inchausti(1997) Operating profit/total assets - Nsig Net income/equity Not tested 10 Owusu-Ansah (1998) Returns on capital employed + Sig 11 Tower et al (1999) Ratio of Profit/Total Assets + Nsig 12 Haniffa and Cooke (2002) Return on Equity i.e net income to total owners equity + Sig 13 Naser et al(2002) Return on Equity + Nsig Profit margin + Sig 14 Camfferman and Cooke(2002) Net Income margin + for 1 st category and – for 2nd category Sig for 1 category and Nsig for 1 category
ACCOUNTING_DISCLOSURES_AND_CORPORATE_ATTRIBUTES.docx