Browsing by Author "Oluoch, Josephat O."

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    Corporate and Strategic Information Disclosure and Earnings Management: Evidence from Listed Firms at the Uganda Securities Exchange
    (Journal of Finance and Economics, 2019) Etengu, Robert O.; Olweny, Tobias O.; Oluoch, Josephat O.
    The purpose of this study is to examine the effect of corporate and strategic information disclosure on earnings management among listed firms at the Uganda Securities Exchange. We conduct our survey on a census of 9 non-financial listed firms spanning a period of 6 years (2012-2017). The study uses the magnitude of discretionary accruals obtained from the De Chow, Sloan and Sweeney (1995) model as a proxy for earnings management. The study’s results show a negative and significant effect of corporate and strategic information disclosure on earnings management. The implication of this finding is that information disclosure related to corporate and strategic information constitutes a constraint to the proliferation of earnings management. The study could benefit regulatory bodies that are considering making disclosure regimes effective. For instance, we find that the disclosure of corporate and strategic information drives EM downwards. In addition, the results of this study might assist regulators and policy makers in understanding better the interconnections between corporate and strategic information disclosure and earnings management practices in Uganda. This study, however, has some limitations. First, because the study uses a self-constructed disclosure index, certain information items employed in prior studies might be omitted. Second, whereas hand collecting the necessary data on corporate and strategic information from the narrative section of the annual reports allows for a data set containing rich information, the exercise is costly and time-consuming.
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    Effect of Corporate Disclosure on Earnings Management Among Listed Firms At The Uganda Securities Exchange: A Critical Evaluation and Literature Survey
    (European Journal of Accounting, Auditing and Finance Research, 2019) Etengu, Robert Oguti; Olweny, Tobias O.; Oluoch, Josephat O.
    The primary purpose of this paper is to critically examine literature on the effect of corporate disclosure on earnings management among listed firms at the Uganda Securities Exchange. We discuss some background information on the interlinkages between corporate disclosure and earnings management. We also explore some of the theories available in literature on corporate disclosure and earnings management. In addition, we critically review extant literature on corporate disclosure and earnings management, highlight the research gaps, provide a justification for novelty of the paper and draw a conclusion. The paper is also expected to make a significant contribution to knowledge by shedding light on the effect of CD on EM, particularly in the context of a developing country.
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    Effect of Mandatory Disclosure of IAS/IFRS on Earnings Management Among Listed Firms At The Uganda Securities Exchange
    (International Journal of Economics, Commerce and Management, 2019) Etengu, Robert O.; Olweny, Tobias O.; Oluoch, Josephat O.
    Prior research provides conflicting results on whether mandatory adoption IAS/IFRS deters or contributes to greater earnings management. On this basis, this study sought to examine the effect of mandatory disclosure of IAS/IFRS on earnings management among listed firms at the Uganda Securities Exchange. First and in accordance with prior empirical disclosure research, mandatory disclosure of IAS/IFRS is examined using a disclosure index. Secondly, earnings management represented by the absolute value of discretionary accruals is measured using the modified Jones model. Thirdly, robust regression is used to examine the effect of mandatory disclosure of IAS/IFRS on earnings management for a census of 9 non-financial companies for the period 2012 to 2017. We find an increase in earnings management following the 2005 mandatory adoption of IAS/IFRS among listed firms at the Uganda Securities Exchange. One important implication of this study is that studying several IFRS enables the accounting standard setters to identify standards that have a significant influence on financial reporting quality and those that need to be revised as they offer the opportunity to manage earnings and allow managers to opportunistically exercise the allowed reporting latitude. Secondly, the mandatory disclosure index used in this study might act as a benchmark for regulators for purposes of future analysis and evaluation. Despite the evidence documented in this study, the population of listed non-financial firms used in this study is small. Consequently this limited the number of firm year observations available over the six year period
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    Voluntary Disclosure of Financial and Capital Market Data and Earnings Management: Empirical Evidence from Uganda
    (Journal of Finance and Investment Analysis, 2020) Etengu, Robert O.; Olweny, Tobias O.; Oluoch, Josephat O.
    This paper examines the effect of voluntary disclosure of financial and capital market data on earnings management among listed firms at the Uganda Securities Exchange. The paper is premised on the idea that the provision of voluntary disclosure of financial and capital market data contributes to the reduction of information asymmetry and that lower information asymmetry makes it more difficult for managers to engage in earnings management practices. We proxy earnings management following the modified Jones model (Dechow, Sloan, & Sweeney, 1995) and use annual reports of 9 listed non-financial firms at the Uganda Securities Exchange for the period 2012 to 2017. Applying robust regression analysis, we find that voluntary disclosure of financial and capital market data is positively and insignificantly related to earnings management. This suggests that the disclosure of financial and capital market data in the annual reports of listed firms at the Uganda Securities Exchange doesn’t necessarily reduce the incentives for managers to engage in earnings management through discretionary accruals.