Influence of Corporate Transparency Disclosures on Financial Performance of Listed Companies in East Africa
Abstract
With the decline in the financial performance of listed companies in East Africa and the rising trend of corporate failure in both global and local perspective. Stakeholders are increasingly becoming more concerned of the financial performance of their firms. This study aimed to find out whether corporate transparency disclosure can be used to address the decline in financial performance and corporate failures. Therefore, the current study sought to examine the influence of corporate transparency disclosure on financial performance among companies listed in East Africa. Specifically, the study sought to examine the influence of financial transparency, risk transparency, social transparency and governance transparency on financial performance of companies listed in East Africa. The study adopted both descriptive and correlation design. Purposive sampling was used to select the 65 listed companies in Nairobi securities exchange in Kenya, 16 companies quoted in Uganda securities exchange, 7 companies which are quoted in Rwanda Securities Exchange as well as 24 companies listed in Daresalaam securities exchange from 2006 to 2015. Secondary data was collected through the use of document check index retrieved from annual audited financial statements. Regression diagnostic and panel data diagnostic tests were carried out. Results of the study revealed that there was a positive and significant relationship between financial, governance, risk, social transparency and financial performance of listed companies in East Africa.Submission of an article implies that the work described has not been published previously (except in the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, in English or in any other language, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.
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