Factors influencing FRS 114 segmental reporting: evidence from Malaysia

Employing 451 annual reports of 2006 from Malaysian public listed companies, this study attempts to investigate the organisational factors like company size, its listing status, financial leverage and industrial membership that influence the disclosure of segmental information under the jurisdiction of new FRS 114 (segment reporting). The study is relevant to the introduction of new accounting standard governing the segmental information disclosure in Malaysia. Using non-parametric tests, the study concludes that except for the company size, its financial leverage and industrial membership do have a significant influence on segmental disclosure. The results of this study can be expanded in future for comparing similar variables of public listed companies of other emerging economies.