Review of Contemporary Business Research
December 2014, Vol. 3, No. 3 & 4, pp. 51-83
ISSN: 2333-6412 (Print), 2333-6420 (Online)
Copyright © The Author(s). 2014. All Rights Reserved.
Published by American Research Institute for Policy Development
DOI: 10.15640/rcbr.v3n3-4a4
URL: http://dx.doi.org/10.15640/rcbr.v3n3-4a4
An E mpirical Investigation of Users’ Views on Corporate Annual
Reports in Developing Countries: E vidence from Kuwait
Mishari M. Alfraih
1
& Abdullah M. Almutawa
2
Abstract
The purpose of this study is to investigate how users of corporate annual reports
(CARs) in Kuwait perceive the usefulness and relative importance of Kuwaiti CARs.
Moreover, this study explores users’ perceptions of the proposed items for
improving the quality of voluntary disclosure in annual reports. A self-administrated
questionnaire was distributed to individuals representing the four groups identified.
Descriptive measures, the Kruskal-Wallis (K-W) test, and the Mann-Whiteny (M-W)
test were used to achieve the study objectives. The study findings show most
participants strongly agree that annual reports of Kuwaiti listed companies are an
important primary source of information in their decision making; however, the
timeliness in publishing annual reports is becoming a matter of great concern. Most
respondents did not feel satisfied with the quantity and quality of information
provided in CARs and indicated a desire for more information. The findings of this
study offer an assessment of the current usefulness of Kuwaiti CARs and provide
recommendations that could improve the quality of Kuwaiti CARs.
Keywords: Corporate Annual Reports; Voluntary Disclosure; E merging Markets;
K uwait
1. Introduction
Corporate report disclosure receives a great deal of attention in empirical
studies and this field of study is growing widely (Beattie, 2005). Binh (2012) argues
that annual reports are commonly regarded as an important means of acquiring
accountability in the corporate sector and often are a means by which sectors can
improve stakeholders’ perceptions of their accountability.
1
Ph.D., CPA, CIA, CFE , Accounting Department, College of Business, the Public Authority for
Applied E ducation and Training – Kuwait. E -mail address: m@ dralfraih.com .
2
Accounting Department, College of Business, the Public Authority for Applied E ducation and
Training - Kuwait