Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country: Moderating Effect of Companies Act 2015

Erastus Mbithi; Tankiso Moloi; David Wang’ombe

doi:10.1007/978-981-19-8485-3_6

Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country: Moderating Effect of Companies Act 2015

Erastus Mbithi, Tankiso Moloi, David Wang’ombe

Johannesburg Business School

Strathmore University

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

This study investigates the relationship between ownership structure and quality of non-financial risk disclosure (NFRD). Further, it examines the moderator effect of the Companies Act 2015 on this relationship. We collect data over twelve years from companies listed on the Nairobi Securities Exchange (NSE) in Kenya. Content analysis is used to measure NFRD and fixed-effect regression to test the hypotheses. The results indicate that quality of NFRD is low and highly dispersed across the sampled firms. The regression results suggest that block ownership, foreign ownership and institutional ownership are associated with NFRD, whilst managerial ownership and government ownership are not associated with NFRD. In addition, institutional ownership, foreign ownership, and government ownership are moderated by the Companies Act 2015, whilst managerial ownership and block ownership are not moderated. The finding highlights the importance of ownership structure in enhancing the quality of NFRD. The finding will be useful to regulators and policymakers when developing, reviewing and enforcing NFRD guidelines.

Original language	English
Title of host publication	Rethinking Management and Economics in the New 20’s - The 2022 Centre of Applied Research in Management and Economics CARME Conference
Editors	Eleonora Santos, Teresa Eugénio, Neuza Ribeiro
Publisher	Springer Nature
Pages	145-171
Number of pages	27
ISBN (Print)	9789811984846
DOIs	https://doi.org/10.1007/978-981-19-8485-3_6
Publication status	Published - 2023
Event	International Conference on Applied Research in Management and Economics, ICARME 2022 - Leiria, Portugal Duration: 29 Jun 2022 → 1 Jul 2022

Publication series

Name	Springer Proceedings in Business and Economics
ISSN (Print)	2198-7246
ISSN (Electronic)	2198-7254

Conference

Conference	International Conference on Applied Research in Management and Economics, ICARME 2022
Country/Territory	Portugal
City	Leiria
Period	29/06/22 → 1/07/22

Keywords

Ownership structure
Quality of non-financial risk disclosure
The companies act

ASJC Scopus subject areas

General Economics,Econometrics and Finance
General Business,Management and Accounting

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1007/978-981-19-8485-3_6

Cite this

Mbithi, E., Moloi, T., & Wang’ombe, D. (2023). Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country: Moderating Effect of Companies Act 2015. In E. Santos, T. Eugénio, & N. Ribeiro (Eds.), Rethinking Management and Economics in the New 20’s - The 2022 Centre of Applied Research in Management and Economics CARME Conference (pp. 145-171). (Springer Proceedings in Business and Economics). Springer Nature. https://doi.org/10.1007/978-981-19-8485-3_6

Mbithi, Erastus ; Moloi, Tankiso ; Wang’ombe, David. / Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country : Moderating Effect of Companies Act 2015. Rethinking Management and Economics in the New 20’s - The 2022 Centre of Applied Research in Management and Economics CARME Conference. editor / Eleonora Santos ; Teresa Eugénio ; Neuza Ribeiro. Springer Nature, 2023. pp. 145-171 (Springer Proceedings in Business and Economics).

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abstract = "This study investigates the relationship between ownership structure and quality of non-financial risk disclosure (NFRD). Further, it examines the moderator effect of the Companies Act 2015 on this relationship. We collect data over twelve years from companies listed on the Nairobi Securities Exchange (NSE) in Kenya. Content analysis is used to measure NFRD and fixed-effect regression to test the hypotheses. The results indicate that quality of NFRD is low and highly dispersed across the sampled firms. The regression results suggest that block ownership, foreign ownership and institutional ownership are associated with NFRD, whilst managerial ownership and government ownership are not associated with NFRD. In addition, institutional ownership, foreign ownership, and government ownership are moderated by the Companies Act 2015, whilst managerial ownership and block ownership are not moderated. The finding highlights the importance of ownership structure in enhancing the quality of NFRD. The finding will be useful to regulators and policymakers when developing, reviewing and enforcing NFRD guidelines.",

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Mbithi, E, Moloi, T & Wang’ombe, D 2023, Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country: Moderating Effect of Companies Act 2015. in E Santos, T Eugénio & N Ribeiro (eds), Rethinking Management and Economics in the New 20’s - The 2022 Centre of Applied Research in Management and Economics CARME Conference. Springer Proceedings in Business and Economics, Springer Nature, pp. 145-171, International Conference on Applied Research in Management and Economics, ICARME 2022, Leiria, Portugal, 29/06/22. https://doi.org/10.1007/978-981-19-8485-3_6

Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country: Moderating Effect of Companies Act 2015. / Mbithi, Erastus; Moloi, Tankiso; Wang’ombe, David.
Rethinking Management and Economics in the New 20’s - The 2022 Centre of Applied Research in Management and Economics CARME Conference. ed. / Eleonora Santos; Teresa Eugénio; Neuza Ribeiro. Springer Nature, 2023. p. 145-171 (Springer Proceedings in Business and Economics).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

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AB - This study investigates the relationship between ownership structure and quality of non-financial risk disclosure (NFRD). Further, it examines the moderator effect of the Companies Act 2015 on this relationship. We collect data over twelve years from companies listed on the Nairobi Securities Exchange (NSE) in Kenya. Content analysis is used to measure NFRD and fixed-effect regression to test the hypotheses. The results indicate that quality of NFRD is low and highly dispersed across the sampled firms. The regression results suggest that block ownership, foreign ownership and institutional ownership are associated with NFRD, whilst managerial ownership and government ownership are not associated with NFRD. In addition, institutional ownership, foreign ownership, and government ownership are moderated by the Companies Act 2015, whilst managerial ownership and block ownership are not moderated. The finding highlights the importance of ownership structure in enhancing the quality of NFRD. The finding will be useful to regulators and policymakers when developing, reviewing and enforcing NFRD guidelines.

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Mbithi E, Moloi T, Wang’ombe D. Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country: Moderating Effect of Companies Act 2015. In Santos E, Eugénio T, Ribeiro N, editors, Rethinking Management and Economics in the New 20’s - The 2022 Centre of Applied Research in Management and Economics CARME Conference. Springer Nature. 2023. p. 145-171. (Springer Proceedings in Business and Economics). doi: 10.1007/978-981-19-8485-3_6

Impact of Corporate Ownership on Non-Financial Risk Disclosure in a Developing Country: Moderating Effect of Companies Act 2015

Abstract

Publication series

Conference

Keywords

ASJC Scopus subject areas

UN SDGs

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