Abstract:
Abstract:
This study empirically investigates the factors influencing the disclosure level in Sri Lankan companies and
provides evidence of factors associated with the level of disclosure requirement. The factors examined were,
company size, profit after tax, cash and cash equivalents, cash flow from operating activities, investing activities
and financing activities of the statement of cash flow. For this purpose, a disclosure index was developed
representing the provisions given in Lanka Accounting Standard (LKAS)-07; Statement of cash flow. Annual
reports of eight public companies in the plantation sector were examined against the disclosure index. The
data gathered were statistically analyzed by refereeing to the content of disclosures. The findings of this study
indicate that Sri Lankan companies have better disclosure level. The analysis indicates R-square value of 0.55
for overall disclosure level, despite the fact that independent variables show a low R-square value. Therefore,
the level of disclosure can be regarded as favorable in terms of information needs of various interested parties
of the companies.
