Disclosure level and its determinants in Banks with emphasis on corporate governance mechanisms and islamic centrality

Document Type : Research Paper


1 Associate Prof. of Accounting Education, Faculty of Management, University of Tehran, Tehran, Iran

2 MSc. Student in Accounting, Faculty of Management University of Tehran, Tehran, Iran


The Asian financial crisis in 1997 has awakened the regulators and corporates on the importance of corporate governance. According to agency theory, a good corporate governance system is necessary for more transparent information disclosure about the corporation. Accordingly, the objective of this study is evaluating the level of disclosure in banks and examine the relationship between some features of corporate governance with disclosure level. The level of disclosure is measured by disclosure checklist. Corporate governance variables tested in this study are the board size, institutional investors and independent non-executive directors. Sample data have been collects from 1390 until 1392 for twenty banks. The results reveal that better disclosure level of the annual reports in banking sector can be achieved by having higher institutional investors. Also There was a significant relationship between higher proportion of independent non-executive directors and disclosure level. However There is no significant relationship between board size and level of disclosure.


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