Abstract:

The disclosure of forward-looking information received increasing publicity for filling the loophole of conventional financial reports This type of information disclosure is argued to be able to predict the impact of financial affairs, impending strategies, and the future prospect of a company. It is able to stave off the information asymmetry problem due to different methods of accessing information of the company by management, investors and other stakeholders. It also offers availability to future cash flows, the capability to predict future earnings, and improve the capability in making investment decisions. However, some companies might refuse to disclose specific information on their prospects. Revealing the forward-looking information to others might be detrimentally used by competitors that lead to higher indirect costs to the company. Thus, this study will examine the level of forward-looking information disclosed by Malaysian companies. Using content analysis, this study focuses on forward-looking information disclosure voluntarily published by top 100 companies listed in Bursa Malaysia in the year 2017. Based on both quantitative and qualitative information, it is found that the forward-looking information disclosure is still at an unsatisfactory level. The results from this study will provide updated information regarding the level and quality of forward-looking information disclosure which has a great impact on the business decision.