Investors Assessment of the Credibility of Management Disclosures

Abstract

The objective of this study, is to examine the issue of the assessment of the credibility of management disclosures about a company from the perspective of the investors. It presents the results from a questionnaire survey of a sample of financial Analysts, accountants and other investor. The data were analyzed using the one way analysis of variance (ANOVA). The study found that management situational incentives, internal and external assurance and other characteristics of the disclosure itself, were thefactors investors considered to affect the credibility of management Disclosures. The study recommends that investors should take these factors into consideration when assessing management disclosures. The study also recommends that management should also take these factors into consideration when preparing their disclosures if they want to improve on their credibility.

Keywords: Investors, Assessment , Disclosures , Management