Market risk disclosures, corporate governance structure and political connections: evidence from GCC firms
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Authors
Al-Hadi, Al-Hadi Ahmed
Al-Yahyaee, K.
Hussain, S.
Taylor, Grantley
Date
2017Type
Journal Article
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Al-Hadi, A.A. and Al-Yahyaee, K. and Hussain, S. and Taylor, G. 2017. Market risk disclosures, corporate governance structure and political connections: evidence from GCC firms. Applied Economics Letters. 25 (19): pp.1346-1350.
Source Title
Applied Economics Letters
ISSN
School
School of Accounting
Collection
Abstract
This paper investigates the joint effect of political connections, in the form of the royal family member on board, and corporate governance on the market risk disclosures of the Gulf Cooperation Council (GCC) financial firms from 2007 to 2011. Previous research suggest that politically connected firms reduce the level of transparency in the GCC. However, we find that better corporate governance improves transparency and can be used as an effective tool in curbing the potentially adverse impact of politically connected board members on firms’ transparency. Our results have important implications for policy makers and can be generalized to other emerging markets.
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