Forward-looking disclosure and short-term liabilities: evidence from Oman

Hidaya Mustafa Ali Al Lawati, Khaled Hussainey

Research output: Contribution to journalArticlepeer-review


The objective of the research was to examine whether forward-looking disclosure (FLD) in the narrative sections of the annual reports is associated with short-term liabilities (STLs). For this purpose, the content analysis method was conducted to measure the quality of FLD in annual report narratives. This research used a dataset consisting of 204 firm-year observations of Omani financial institutions listed on the Muscat Stock Exchange over the 2014-2019 period. This research examined the impact of FLD on STLs by using quantitative regression models. The findings revealed that FLD is positively related to the rise of short-term liabilities. This suggests that FLD reduces information asymmetry between companies and their stakeholders. Hence, these companies will be able to raise short-term finance. It is noteworthy that this is one of the early studies that addresses the link between FLD and short-term liabilities. As such, it provides significant contributions to corporate narrative disclosure studies
Original languageEnglish
JournalInternational Journal of Accounting, Auditing and Performance Evaluation
Publication statusAccepted for publication - 3 May 2022


  • short-term liabilities
  • forward-looking disclosure
  • content analysis
  • financial institutions
  • Oman


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