Abstract

The objective of this study is to explore factors influencing the quality of corporate reporting of non-financial companies listed on Abu Dhabi Securities Exchange (ADX). To achieve this objective, the annual reports of all non-financial companies listed on ADX for the years 2010-2012 are used to develop a proxy of the quality of corporate reporting and extract possible variables explaining the quality of corporate reporting. Variables employed in this study are size, profitability, leverage, age, industry type, percentage of shares owned by government, cash dividends, and presence of dominant personality serving on the company’s board of directors. The results of the analysis revealed that the quality of corporate reporting of the non-financial companies listed on ADX is relatively high (83% of the expected disclosure). The analysis further pointed to positive and statistically significant association between the quality of corporate reporting and variables such as size, industry type, leverage and age. On the other hand, negative and statistically significant association appeared between the quality of corporate reporting and the presence of dominant personalities on the company’s board of directors.

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