This paper aims to examine the relationship between CEO’s attributes and the level of compliance with financial instruments risk disclosure (hereafter FIRD) as required by International Financial Reporting Standard (IFRS) 7.
A data set of financial institutions listed on the Toronto Stock Exchange over the period 2015–2020 has been analyzed. Panel regressions have been estimated to provide empirical support for the testable hypotheses.
The research findings reveal that chief executive officer (CEO) compensation and financial expertise are positively associated with the level of FIRD provided by Canadian financial institutions. However, the analysis does not document any significant statistical linkage between the compliance score and CEO tenure, gender and age.
This study has important implications for stakeholders evaluating the determinants of reporting quality, for boards of directors considering CEO compensation and expertise and for standard setters considering the compliance level with new standards requirements.
This paper provides novel evidence on the linkage between CEO attributes and corporate disclosure. To the best of the authors’ knowledge, this paper is among the first to explore the impact of CEO characteristics on compliance with International Accounting Standards Board disclosure requirements. The analysis is also among the first to investigate compliance with IFRS 7 before and after the amendments required by IFRS 9.
