Segment reporting practices and determinants: evidence from Malaysian public listed companies

Farah Abd Mutalib

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Type :	article
Subject :	HD28 Management. Industrial Management
Main Author :	Farah Abd Mutalib
Additional Authors :	Hartini Jaafar
Title :	Segment reporting practices and determinants: evidence from Malaysian public listed companies

Place of Production :	Tanjong Malim
Publisher :	Fakulti Pengurusan dan Ekonomi
Year of Publication :	2019
Corporate Name :	Universiti Pendidikan Sultan Idris

Abstract : Universiti Pendidikan Sultan Idris

This study aims to examine the extent and variety of operating segment disclosure among Malaysian public listed companies following the adoption of a new standard MFRS 8 Operating Segment. It further investigates the associations between firm characteristics (firm size, profitability and industrial membership) and the level of compliance to MFRS 8. Using content analysis on a final sample of 97 public listed firms on Bursa Malaysia, the results show that the average level of disclosure on operating segment is 73% and that the most reported items are both profit and loss, and external revenue at 8.56% respectively. Meanwhile, the highest segmental information disclosure variety is found to be 11 out of 16 items with only 20.62% firmsfound to comply with such disclosure variety. The results also indicate that industrial membership affects the level of segmental reporting compliance. The research outcomes serve as a valuable benchmark for comparison with other emerging nations in terms of the level of compliance to segment reporting practices and provide more insights into the interactions between the level of compliance and firm characteristics.

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