Guoabong Stock：Assessment of Financial and Social Disclosure Level of Ethiopian Commercial Banks

Financial Disclosure is a Mandatory Disclosure Given By Reporting Firms. The level of a firm's Financial Disclosure is Assed Based On Requirements of Standards SUCH As IAS/IFRS. USING IFRS MANDATORY DISCLOSURE Requirements Sultana et al. (2017) Studied the Financial Disclosure Practice ofFinancial Security. Fit and Loss and Oci (Other Comprehensive Income) Disclosure, Stockholders' Equity Disclosure, Statement of Cash Flows Disclosure, and Accounting Policies andNotes to Financial Statements Disclosure. The group of the similar to KPMG's Disclosure Requirements. VEALS that Financial sector companies do not comply with all the mandatory disclosure requires with an Average Disclosure of 56.35% of the itessof information. FUREHER, They Studied the Association BetWeen Company-Specific Characteristics and Mandatic Disclosure and they Found that Company Age, Size and PR. OFITABILITY HAVE SIGNIFICANT Associations with Degree of Disclosure.

In a Similar Stud, Askary and Jackling (2005) Assessed and Measud the Financial Disclosure Diversity. They user Requirements and Groupd the Disclosure Items Into Six Groups' General Information, Balance Sheet Information, Profit and Loss, Cash Flow Statement,Accounting Policies, and Other InformationGuoabong Stock. They ConDuctary Study As a Comparative Study ASIAN and Middle Eastern Countries. Ublicly Listed Companies on the Countries' Stock Exchanges. Their Research Result Found that the Countries Included in the Study Had ARelacted degree of conformity with IAS DISCLOSURE Requirements.

Another Comparative Study Regarding Compliance with Disclosure Requirements Across Countries is Done in Africa Between Ghana and Kenya. Rely DisClosure Compliance Level of 31 Companies Liseted on the Ghana Stock Exchange and 50 Companies Listed on the Nairobi Stock Exchange Exchange.They userd ifRS DISCLOSURE Checklists to Compute The Disclosure Compliance Score. They Found An Overall Compliance score of 97.1 and 74.5% Between Kenya and Ghan. a Respectively. They Conclude that keneya's Higher Disclosure Compliance Score is Attributed to the Older Stock Exchange in Kenya and the Earlier AdOptionof ifRS.

The Most Recent Discove Compliance Study Conducting by Tasnim and Mahmud (2022) Shows that the Average Disclosure IS 72.77% by the Private Banks In Ban GladeshAgra Wealth Management. The Highest Level of Disclosure Compliance they Found is 80% with a Negative Deviation from the Average. InCategorizing the themes of Financial Disclosure they Follow Sultana et al. (2017) Disclosure Checklist Grouping APProach.

KRIBAT (2009) Investigates the exit of disclosure compliance of libyan banks. The finding of the statements that bank failed with obligate re run; The Average Level of Compliance was 89% (with a range of 74–97%). InTerms of Total Levels US 54% of information on AverageThat Profit and AGE TEND to have a favorable Impact on topal finiclosure level, whereas siZe Appears to have a Negative impact.

USING A DISCLOSURE Checklist of 132 MANDATORY DISCLOSURE Requirements, Zango et al. (2015) Investigated the discliance level of nigerian banks. YED The PriceWaterHousecoopers Disclosure Checklist to Examine the Disclosure Level of Nigerian Banks. Irements. However, Compliance is Above Average for the year 2012 and 2013.

Through applying descriptive statistics Abe et al. (2020) assessed the disclosure compliance of Nigerian listed firms and found none of the firms fully adhered to disclosure requirements. In assessing the disclosure level they used self-constructed disclosure checklists based on international accounting standards. InAdDition, They FOOND that DisClosure Levels has been a statistics significant influence on the preservice of shareholders' Internets.

The Financial Discoven Requirements Given by Proposed Standards for Smes Are Also Used as a Benchmark to Assess. quirements. In this regard, Ballas and Tzovas (2010) Investigated the Compliance of Greek Firms with Disclosure Requirements usersChecklists of Accounting Standards for Smes with a Sample of 32 Listed Firms. In their Analysis, They Applied Univar asss and a Multivarity Regression Model Their Result Indicates that On Average Firms Comply with About Two-Thirds of the DisClosure Requirements. Moreover, They ExaminedThe Relations of Firm-Specific Characteristics with the Excent of Disclosure Compliance and they Found that Disclose is positive and significant. ly influent by Listing Status.

Public Companies Which are more propitable and Smaller in Size with a Classification of ConGLOMERATES or LISTED on the Stock Exchange Extensive Disclosure PRAC. TICES. Listing Status, Industry Type, and Profitability Have a Positive Influice on Financial Disclosure. However, SIZE HAS A Negative Influence OnThe exit of finicial discosure (vlachos, 2001).

Financial Disclosure Compliance is Positively Related to Auditor Choice after Controlling for Firm Size, Profitability, Leverage, Degree of International FICATION, and WHETHER A FIRM HAS A U.S. Listed or Not (Hodgdon et al., 2009).

The Empirical Empirical Empirical Empirical Empirical Empirical Empirical Empirical Empirical Empirical Empirical Empir Empir Empir Empires that of Indicates Disclosure Increased with the Proportion of Independent Board DENT AUDIT CommartTees, However, DisClosure is the decreasing function of CEO Duality. Companies with Highers of Institutional Ownense and Foreign tation onThe Board are more likely to engage an Audit Firm with International AFFFILIATION and Comply with IFRS ReCognition and DISCLOSURE Requirements (ebrahim and Fattah, 2015).

Corporate Governance Variables Are Also Factors that Determine the Disclosure Level of Firms. In this regard, kabwe et al. Ooate Governance Attributes and Financial Disclosure Compliance Level.And disclosure compliance. An Audit Committee's Independence and Disclosure Compliance Have A StatisticsTIFICANTNIVE NEGATIVE Association.

Regarding the relationship between corporate governance and disclosure compliance level, an empirical study was also documented in selected Gulf countries by Almaqtari et al. (2021). The findings show that audit committee characteristics have a greater influence on disclosure compliance and financial reporting quality than otherCorporate Governance Methods.

The Degree of Disclosure Compliance is Determined by Companies' Motivations for Disclossing Or Concealing Information, As Well As The Local Circumstances For Key , Auditors, and Regulators. Increased Dependent on Entities Operation in "Good Faith" when complying with disclosure objects, particularly inSCENARIOS where entities are in High-foundive positions with low contents of non-compliance, is putially dangerly in terms of how, main use from bad disclosers. To enter a spiecific minimum level of transparency, more focus should be placed on enSuryingthat the discosure obligations are enforble andumitable (HelloMan et al., 2018).

Disclosure is an important element for investors to make an information. Omponents of Investors' DECISIONS and the Disclosure Score of Each Segment of the Disclosure Index.the disclosure scores of the various components of the disclosure index had a considerable favorable influence on the other relevant components of investors' judgments.

MOST of the Financial Discoven Level Studies ConDucting Around the Globe Such as in US Firms, Gulf Countries, and AFRICAN COUNTRIES Indicate That Companies D o not Fully Comply With Disclosure Requirements. The Discovence Level of Firms is Affectd by Both Firm-Specific and Governance Mechanisms. In Several Empirical Liticture, It Is Stated that Financial Disclosure is an Important Tool to Create Information Symmetry and Enhance Investment

The Other Aspect of DisClosure Practiced by Firms is Corporate Soclosure usually "Corporate Social Responsibility Disclosure." This Type of D IsClosure Given by Firms is Important as it is used as a mechaanism to create transparency between the firm and various stakeHolders.

As Indicated in the Study of Singhania and Gandhi (2015) In Recent Years Companies Have Focused On Social Disclosure. CREASINGLY PAYING MORE and MORE ARESTENTO SOCIAL ISSUES in a Company. Investors and Financial Analysts Need SocialInformation to everuate overall performance and estimate social risks; Government Needs Information to Implement Social Regues' and Consumers Need The Information T o propick their rights.to the presentures that comer from the public and media.

Social Disclosure is the Approach Companies use to disclose their social residity activity and it is the way to Reduce The Gap Between the First A. ND The Stakeholders (Said et al., 2009). The objective of social disclosure is to disclose the involutionant of the corporationIn Social Activities and ITS IMPACT on Society (Hamid, 2004). Social Disclosure Is to Alter the TRADITIONAL of Business to Include , And Values, and Consider The Social and Environmental Implications of Business Activities (Habbash, 2017).

Corporate Social Responsibility is an unavoidable Trend in TODAY ’s World. Internets. This is an issue that requires global attention, not just national or regional attention (Trans et al., 2020).

Corporate Social Disclosure Focuses on Some Dimensions Discussed in Several Empirical Studies. The FollowIn Are the Empirical Studies that userd commit dispis cussed dispire disclosure.

Uyar et al. (2014) Studied the Association Between Firm-Specific Characteristics and Voluntary Disclosure. Y USED SOME SOCLOSCLOSURE DIMENSIONS SUCH As ENVIRONMENTAL DISCLOSURES, Corporate Social Responsibility Disclosures, Employeee Disclosures, and Corporate Strategy DisclosuresTheir Findings Show a Link Between The Ex '. Endent Directors on the Board, Institutional/Corporate Ownership, and Corporate Governance. However, in their finding, it wasObserved that level and ownership dismission had a neigatic significant recionship with the level of voluntary disclosure.

Al-Gamrh and Al-Dhamanari (2016) Also Investigated the Relationship Between Firm Characteristics and Social Disclosure by Categorizing It Into Four themes Are Organizational Profile, Environmental Information, Employee Information, and Community Information).The level of CSR DISCLOSURE and DISCovered that Saudi Enterprises Had A Low Level of CSR Discosure with An Average score of 15.4% Per item. , Large, GoverNMENT-OONED, and Older Companies Release more csr information.

Ajibolade and UWUIGBE (2013) Investigate the Effect of Governances on Social Disclosure in Nigeria USINGE DISCLOSURE DIMENSINSINSIONS WHICHICH Include, EN Vironment, Energy, Research and Development, Employee Health and Safety, and Community Involution. D ANAVERAGE of 48.58% of the Social Disclosure Levels Ranked as Low Level of Disclosure. FROM Regression Output, They Found that An Effective Buard with A Greater Number of N OneXECUTIVE DIRECTORS (Independent Directors), As Well As Bigger and Higher-Quality Audits, WILL Be moreSupportive of Corports to Disclose A Broader Variety of Information to StakeHolders, Including Social and Environmental Information.

SimiLarly, Said et al. (2009) ConduCted A Study in Malaysia USING SOCLOSCLOSURE DIMENSINSUCHICHICH Include, Environment, ENERGY, Emplaye Heal Th and Safety, and Community Involvement. They Found a LOWEL of Corporate Social Disclosure Which is 13.9% onAVERAGE Determine used the discosure index. Further, then Found that the exit of Corporate Social Rescription ECTED with Government Ownership and Audit Committees.

Kansal (2011) Studied the Social Disclosure Practice of Indian Companies using Seven Dimensions (Which Are Environment, Energy, Community Involution, E health and Safety, and Other Employeeeeee is and propucts). USING DISCLOSURE INDEX Computation She Found a Low Level of Disclosure ScoreWhich is on Average 40.46%. She Also Researchd the Relationship Between Company and Corporate Soclosure and Discovered A POSITIVERED A POSITIVERED Relationship.

Dropulid and čUlar (2019) Investigated the Disclosure Practice of Corporate Social Activity in Croatia USing Seven Dimensions; NITY Involvement and Charity, Business Strategy and Market Relations, Customer/Client Relations, Products, and Environmental Concent. From the SixDISCLOSURE DIMENSIONS, They Found An Average Disclosure Level of 35%.

Romito and Vurro (2021) Performed Research in US-Listed Corporations to See If THE Structure of Non-FinanCial Disclosure, DEFINED As The Distribution of Financial, so CIAL, and ENVIRONMENTAL Information as Part of the Dialog Between A Firm and Its Stakeholders, Reduces InformationAsymmetry. They user a stakeholder perspective of the company to Assess the structure of non-FinanCial Disclosure Along Threensions: DEPTH, BreadTh, and Con Conne Centration. The Quantity of Non-FinanCial Transparence and the Range of StakeHolder-Relands Included in the Reports LessenInformation asymmetry, accounting to their findings. FURTHERMORE, ORGANIZATIONS WITH CONSITENT Information Distribution of the OPACITY and Reduced Information Asymmetry.

The Cross-Country Research On South Asian Countries ConDuctary by Bae et al. Practices. They consider a set of insightful theories, notbly the signaling and agency theories, to comprehend the motivations of drivers ofSustainability Disclosure. Their Findings Revealed A POSITIVE and SUBSTANTIAL Association Between Overall Sustainability Disclosure and Foreign Shareholding, I Nstitutional Shareholding, Board Independnce, and Board Size. They Discovered, on the Other Hand, that Director Ownership is Negatively Relate oVErall Sustainability Disclosure.

The Degree of Voluntary (Including Social Aspects) DisClosure Varies Across Reporting Entities, and Various FACTORS Inflonce (Debeb Asmare Asmare A ND Viswanadham, 2022).

To Evaluate The Effects of Governance Variables on Corporate Social Disclosure Level, Trans et al. (2020) UnderTook A Study Commercial Banks. Hat Board Size, Foreign Members of the Board, and the Audit Committee Are Three Elements that favorably EnhanceCorporate Social Responsibility Disclosure.

ZAID et al. (2019) Investigated the effects of Governance on Corporate Social Disclosure. They revery that the level of corporal report has HTLY Increased Over the Study Period. FURTHERMORE, Their Findings Reveal that Board Size and Independence A POSITIVE and StatisticsSIGNIFICANT EFFECT on the Amount of Corporate Social Disclosure, whereas gender directRSity has a positive button. R Result Documented that, CEO Dualism is Inverseely and Strongly Associated with CSR Disclosures.

MOU and MA (2023) Found that the quality of a-share -Listed Banks' Social Information Disclosure is Not Higher Level in China, Although it is improving years by Year bye A. A. They Also Empirically Researchd The Elements that Influence the Quality of Social Information DisclosureTheir Findings Reveal That Corporate Size, Dual Listing, and Board Size all have a considrable impact on the Quality of A-SHARE-LIISTED Banks' Social Inf ORMation Disclosure.

The Corporate Social Disclosure Dimensions used by Previous Researchers SUCH AS (Ajibolade and UWUIGBE, 2013; Al-Gamrh and Al-Dhamari, 2016; DROPULIć AND Ular, 2019; Kansal, 2011; Kiliç et al., 2015; Romito and Vurro, 2021; Said et al., 2009; Trans et al., 2020; uyar et al., 2014) To quantify the social disclosure level are almost sacept slight var before; for Products Disclosure Use in One Researcher May Use As ResearchAnd dueopopment disclosure by another researcher and Vice Versa. The Majority of the Empirical Studies Found Low Levels of Social Disclosure and Social DISCL Osure is affected by Both Firm Characteristics and Governance Mechanisms.

This the public. Roach and compare the discosure levels of Private and Public Commercial Banks in Ethiopia.

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