The Effect of Valontery Disclouser on the Financial Performance of Commertial Banks Sector on Bahrain Bourse: An Empirical Study

Authors

Naser Abdulrahman Al-Fehani, College of Administrative Sciences, Applied Science University (ASU), P.O. Box 5055, East Al-Ekir, Kingdom of Bahrain.Follow
Talal Al-Alkawi, College of Administrative Sciences, Applied Science University (ASU), P.O. Box 5055, East Al-Ekir, Kingdom of Bahrain.Follow
Saeed Aldulaimi, College of Administrative Sciences, Applied Science University (ASU), P.O. Box 5055, East Al-Ekir, Kingdom of Bahrain.Follow
Fejer Binshams, College of Administrative Sciences, Applied Science University (ASU), P.O. Box 5055, East Al-Ekir, Kingdom of Bahrain.Follow

Abstract

The present paper aims to examine the impact of voluntary disclosure on the financial performance of the commercial banking sector in Bahrain Bourse. The voluntary disclosure was measured using eight groups of indicators: General and Strategic information, Corporate governance, Financial performance, Non-financial information, Risks, Social and Environmental disclosures, and Future expectations. All indicators were combined as an independent variable. The return on equity (ROE) and Earning per Share (EPS) were used to measure the financial performance as a dependent variable. This study adopted a descriptive statistical approach. Data were collected from the annual reports of all the commercial banks listed in the Bahrain Bourse from 2012 to 2018. The results showed that the average voluntary disclosure rate for banks in the commercial banking sector in Bahrain Bourse was (58%). Moreover, there was a significant impact for general and strategic information, risks, and all indicators combined on financial performance using the EPS. However, the impact on financial performance was only for the voluntary disclosure of risks and all indicators combined using ROE as a dependent variable to measure financial performance. In addition, there was no significant impact for the remaining variables on performance. The study recommends that the commercial banks should expand the voluntary disclosures on general and strategic information and risks as well as continue disclosure on the remaining variables.

Recommended Citation

Abdulrahman Al-Fehani, Naser; Al-Alkawi, Talal; Aldulaimi, Saeed; and Binshams, Fejer (2021) "The Effect of Valontery Disclouser on the Financial Performance of Commertial Banks Sector on Bahrain Bourse: An Empirical Study," Information Sciences Letters: Vol. 10 : Iss. 4 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol10/iss4/7