Mardini, ownership diffusion, firm size and growth can

Mardini, Tahat and Power (2013)
in their article titled “Determinants of segmental disclosures: evidence from
the emerging capital market of Jordan” aimed to determine the factors that
influenced the segment disclosures of Jordanian companies. To examined company
attributes and their influence on segment disclosure,
three disclosure indices were developed based on mandatory, voluntary and total
segment disclosure. The results of the study indicate that firm size and an audit firm are significantly associated with
mandatory segment disclosure while voluntary and total segment disclosure were found to be significantly associated with
firm size, audit firm type and
profitability. The authors conclude from the results that profitable firms use
segment disclosures as a positive signal to stakeholders about their
performance in order to reduce information asymmetry between firms and capital
providers. These results have implications for both international and national
regulatory bodies in Jordan.

Ibrahim (2014)
in his article titled “Firm Characteristics and Voluntary Segment Disclosure
among the Largest Firms in Nigeria” attempted to explain the disclosure of
segment information in the annual reports of Nigerian companies by reference to
specific characteristics of those companies. An extensive literature was sought
to establish whether variables such as firm age, profitability, ownership
diffusion, firm size and growth can
determine firms’ disclosure practices. The author established that both
industry type and firm size are significantly associated with the extent of
segment disclosure, whereas such an association could not be proved with
listing age, growth, profitability and ownership diffusion. In addition, the
result indicated that there is a tendency for firms to disclose more segment
information in the post-adoption period
of IRFS 8 on operating segments through increase reliability of the amount of
information in the Company’s annual report.

Hawashe (2014)
in his thesis titled “An Evaluation of Voluntary Disclosure in the Annual
Reports of Commercial Banks: Empirical Evidence from Libya” studied to examine bank-specific attributes and their influence on
segment disclosure. This study aimed to
determine which of the factors such as firm age, firm size, profitability,
liquidity, government ownership, foreign ownership and listing status were significantly related to increased segment
disclosure. The author used the un-weighted disclosure index on a sample of 9
banking companies of Libya. To measure the association between the variables,
the author used multiple regression analysis. The findings of the study showed
that there was an improvement in the general level of voluntary disclosure.
Company attributes such as bank size measured in terms of total assets and
listing status had a significant association with the disclosure level of
voluntary information. Limitations were also revealed with regard to
self-constructed disclosure index, sources of information and small sample
size.

Altaf (2014)
in his article on “Impact of Segment Reporting on Stock Market Performance” done
an empirical study to examine the impact of segment disclosure on stock market
performance with the use of regression analysis. It was observed in the study
that EPS and Book value of shares were statistically significant with segment
disclosure. In contrast, the results showed that business segment and
geographical segment have no significant impact on segment disclosure as
measured by regression analysis.

Kumar & Sridharan
(2014) in their article titled “Segment Reporting: The
Disclosure Practice of Indian Listed Companies among Select Industries”
conducted a study to investigate whether the extent of segment disclosure has
improved as a result of the adoption of
AS-17. They took a sample of 125 companies from six different industries listed
on two stock exchanges (i.e. Bombay stock exchange and National Stock Exchange)
for the year 2001-02 to 2011-12. They used un-weighted disclosure index to
measure the compliance. The results of this study indicate that the level of
disclosure of different industries has significantly increased over time.

Hollie and Yu (2015)
in their article on “A Perspective on Segment Reporting Choices and Segment
Reconciliations” reviewed the history of segment reporting, its value relevance
and the importance of segment reporting to management. Concerning the value
relevance of segment reconciliations, they provide evidence supporting
reconciliations being more value relevant and beneficial in the future.

Obradovic and Karapavlovic (2016)
in their article titled “External Segment Reporting in the Republic of Serbia”
studied the currently existing regulation of segment reporting in the Republic
of Serbia. Additionally, in order to determine whether the type of entity
influences the disclosure of segment information, Chi-square tests were
conducted. The results of the study revealed that the financial institutions
have disclosed more detailed segment information in comparison with the other
type of companies. The study also suggests that
the regulatory bodies and other relevant parties should pay more attention to
segment reporting disclosures in order to meet user needs.

Souza, Neto, Benedicto and Mendonca (2016)
in their article titled “Segment Reporting in Brazil: Factors Influencing the
Disclosure” conducted a study on the extent and determinants of segment
reporting in Brazil. For measuring the level of disclosure, they prepared a
list of 40 segment information which was elaborated based on the requirements
of CPC 22. Based on the results of the analysis they found that size,
Indebtedness, corporate governance and audit firms are the most important
determinants of segment reporting. Other factors tested by them, namely
profitability, corporate governance, audit and time were found to have no
significant effect on the extent of segment disclosure by Brazilian companies.

Shetiya and Saraf
(2017) in their article titled “A Study of Segment
Reporting Practice in India” has discussed the need for segment reporting, its
significance and its importance to the users of the financial statement. The study states that the reporting of
segmental information does not only fulfill
the data requirement of stakeholders, it will also contribute to the growth of
the company as well as the whole economy.

Review
of Literature on Segment Reporting