Determinants of forward-looking disclosure: Evidence from Bahraini capital market

Abstract

This study investigates the factors that may affect the extent of corporate forward-looking disclosure. The study has used a forward-looking disclosure index of 56 items and applies the qualitative data analysis miner (QDA miner) as a software package to measure the amount of forward-looking information disclosed by a sample of Bahraini listed companies in the period 2010-2013. QDA miner has used mainly for coding and analysing the collection of text data. The study employs statistical analysis to examine the relationship between corporate forward-looking disclosure and five firm characteristics (firm size, financial leverage, sector type, profitability, and liquidity). The backward regression analyses show that financial leverage and firm size are found to be significant; however, sector type, profitability, and liquidity are found to have insignificant association with the level of corporate forward-looking disclosure.