The Inclusion of Forecasts in the Narrative Sections of Annual Reports and Their Association with Firm Characteristics: The Case of Jordan

Abstract

This study investigates the disclosure practices toward disclosing forecast information in the narrative sections of the annual reports for industrial and service companies for the year 2007. Additionally, this study examines the determinants of disclosing forecast information for the companies listed on the Amman Stock Exchange (ASE) by encompassing information asymmetry, proprietary cost and corporate governance characteristics. The results document that forecast disclosures are positively related to growth opportunities, role duality, and company size, but it is negatively related to competition rate and performance. [PUBLICATION ABSTRACT]