Corporate governance reporting in Bangladesh
Abdur Rouf, Department of Business Administration,
Daffodil International University, Dhaka, Bangladesh, and
Institute of Business Administration, University of Rajshahi, Rajshahi, Bangladesh
International Journal of Ethics and Systems
Vol. 36 No. 1, 2020 pp. 42-57 © Emerald Publishing Limited 2514-9369 DOI 10.1108/IJOES-02-2019-0035 (SCOPUS)
Purpose – This study aims to investigate the extent and nature of corporate governance reporting (CGR) in
corporate annual reports of Bangladesh. The aim of the study to test empirically the relationship between
corporate governance (CG) and CGR by the listed companies in Bangladesh. The CG examined the proportion
of independent directors, board leadership structure, board size, ownership structure and audit committee size.
Design/methodology/approach – The study is based on a sample of 86 listed non-financial companies
in Dhaka stock exchanges (DSE) from the period of 2015-2017 and all the companies are selected by judgment
Sampling. The study has been used as an unweighted relative disclosure index for measuring CGR.
Findings – The empirical results indicate that board leadership structure (BLS) is positively associated with
the level of CGR. In contrast, the percentage of equity owned by the insiders to all equity of the firm is
negatively associated with the level of CGR.
Practical implications – Findings of this study have important implications for regulatory authority,
enforcement agencies such as Institute of Cost and Management Accountants of Bangladesh, Institute of
Chartered Accountants of Bangladesh, Bangladesh Securities and Exchange Commission, DSE, policymakers,
shareholders and others who have an interemaammast in CG.
Originality/value – Finding of the study will be a benchmark for policymakers and implementers in
torching the avenues of improvement in raising the level of CG reporting.