Link between corporate governance, company size and company announcements on disclosure compliance for companies quoted at the NSE

Abstract

This study seeks to assess the link between company size, corporate governance and company announcements on disclosure compliance motivated by the CMA requirement that companies have to comply with their Guide book on corporate governance. The study was seeking to introduce more variables to disclosure compliance than ones advocated by CMA as corporate governance. The main reason was to check on the excess that have come along due to financial innovation and other issues that have resulted from the time companies were only required to disclose information on corporate governance. This study was facilitated by the use of secondary data from annual reports of quoted companies from the NSE handbook and the CMA guidelines report with a sample of 23 companies in the non financial segments. This study was conducted though the scoring of the main variables being investigated with the total scored been regressed to get the final findings. From the findings its can be noted that all companies have been complying with the corporate governance disclosures but with the introduction of the other variables its notes that most of the firms 84 % did comply when it comes to corporate governance and board size but only 17.2% (4.3% of the sample population) did comply with the CMA regulations. There was also a positive colleration between company size and compliance but a negative colleration with company announcements mainly due to the fact that company announcements are a prerogative of the company's board and the law is not clear on what is or is not to be announced.