The Influence of the Board of Directors and the Auditor in the Disclosure of Derivative Financial Instruments: Evidence on Portuguese Capital Market

• Serra, Sara ^[1] ; Lemos, Kátia Matos ^[1] ; Matins, Maria Sofia ^[2]
  1. [1] Department of Accounting and Taxation, School of Management, Institute Polytechnic of Cávado and Ave, Portugal
  2. [2] School of Management, Institute Polytechnic of Cávado and Ave, Portugal
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 7, Nº. 1, 2022
• Idioma: inglés
• DOI: 10.26668/businessreview/2022.v7i1.240
• Títulos paralelos:
  • La influencia del consejo de administración y del auditor en la divulgación de instrumentos financieros derivados: Evidencia sobre el mercado de capitales portugués
• Enlaces
  • Texto completo (pdf)
• Resumen
  • español

    Objetivo: Este artículo tiene como objetivo analizar la influencia de determinadas características del consejo de administración y del auditor en la divulgación de los instrumentos financieros derivados.

      Método: Los datos se obtuvieron mediante análisis de contenido, considerando los informes y cuentas de 2017 de 37 empresas cotizadas en Euronext Lisboa, a través de un índice de divulgación. Posteriormente, se desarrolló un modelo de regresión lineal múltiple para identificar los determinantes del nivel de divulgación sobre instrumentos derivados.

      Originalidad / Relevancia Las operaciones con instrumentos derivados están asociadas a altos riesgos, por lo que la divulgación de estas operaciones y sus resultados ayuda a reducir las asimetrías de información. Por otro lado, según la teoría de la agencia, las características del consejo de administración y del auditor pueden afectar la calidad y el nivel de la información financiera divulgada.

      Resultados (obligatorio): Los resultados revelaron que solo el número de miembros independientes en el consejo de administración, el género del auditor y el tamaño de la entidad influyen en el nivel de divulgación sobre los instrumentos derivados.

      Contribuciones teóricas / metodológicas: Este estudio puede ser útil para que los reguladores establezcan requisitos de divulgación para instrumentos derivados y útil en la toma de decisiones de las empresas para definir los miembros del consejo y el auditor.

      Contribuciones sociales / gerenciales: Contribuye a la literatura sobre el cumplimiento de las NIIF y contribuye a la percepción de la influencia de determinadas características asociadas al consejo de administración y al auditor en la divulgación de instrumentos derivados.

     

  • English

    Purpose: This article aims to analyze the influence of certain characteristics of the board of directors and the auditor on the disclosure of derivative financial instruments.

    Theoretical framework: Operations with derivative instruments are associated with high risks, so the disclosure of these operations and their results helps to reduce information asymmetries. On the other hand, acccording to agency theory, the characteristics of the board of directors and of the auditor can affect the quality and the level of financial information disclosed.

    Design/methodology/approach: The data were obtained through content analysis, considering the 2017 reports and accounts of 37 companies listed on Euronext Lisbon, through a disclosure index. Subsequently, a multiple linear regression model was developed to identify the determinants of the level of disclosure about derivative instruments.

    Findings: The results revealed that only the number of independent members on the board of directors, the auditor's gender, and the size of the entity influence the level of disclosure about derivative instruments.

    Research, Practical & Social implications: This study may be useful for regulators in setting disclosure requirements for derivative instruments and useful in companies' decision making in defining the members of the board and the auditor.

    Originality/value: It contributes to the literature on compliance with IFRS and contributes to the perception of the influence of certain characteristics associated with the board of directors and the auditor in the disclosure of derivative instruments.

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