Disclosure index was used on a quantitative basis to
measure the extent of segment disclosure in the sample
companies’ annual reports using the un-weighted index.
Disclosure index enables the calculation of total disclosure
score for each company under study. Items are identified
and measured by counting the total number of items each
company disclosed divided by the total items in the study
disclosure check list. The sample firms’ financial statements
are then assessed relative to the list, a score of one is given
for each item disclosed and zero is assigned for each non
disclosed item. Each firm’s aggregate score is then divided
by the total number of items relevant to that firm [24].
The disclosure index was constructed based on previous
studies [24], [25] as a satisfactory model for financial
disclosure and has been used in many studies therefore can
be regarded as a reliable model. Descriptive analysis,
Pearson correlations as well as Multivariate regression are
also employed in this study to explain the patterns derived
from each of the 76 annual reports under study and the
relationships between the variables of interest.