By reviewing the literature, we find a clear gap in studying the effect of corporate governance mechanisms on asymmetric information in general and in the UK capital market in particular. Accordingly, the main objective of this research is to establish a practical guidance for corporate governance mechanisms (internal and external) that can be used to control, mitigate or reduce asymmetric information. The empirical work includes three studies. The first study examines the effect of some corporate governance variables (related to some. internal and external corporate governance mechanisms) on asymmetric information. The second study examines the effect of corporate governance mechanisms using the Institutional Shareholder Services (ISS) indexes' values on asymmetric information. The third study examines if corporate governance variables could be used as predictors for the degree of asymmetric information and for the corporate governance indexes' values. Using a sample of 392 non-financial UK companies listed in the London Stock Exchange from 2003 to 2006, the results of the first study indicated that board and committees' sizes, activities and independence; executive compensation; the number of investors inside the company and debt financing are significantly negatively related to asymmetric information. The ratios of insiders' ownership and block (institutional) ownership are significantly positively related to asymmetric information. The results of the second study indicated that the corporate governance sub-indexes which are related to board, audit, compensation and ownership are significantly negatively related to asymmetric information. Also, corporate governance's general and industry indexes are significantly negatively related to asymmetric information. The negative relations of corporate governance variables and indexes with asymmetric information which resulted from the first and second studies indicated that the higher the quality of corporate governance the lower the degree of asymmetric information. Based on the results of the first and second studies, the results of the third study indicated that corporate governance variables could be used in predicting asymmetric information degree (high or low) and the rates of corporate governance indexes with a higher degree of significance and accuracy. This research has several contributions to make to the financial literature and practices. First, the research examines comprehensively the effect of corporate governance mechanisms on asymmetric information. Second, the research unified the theoretical thinking for corporate governance and asymmetric information under the agency theory. Third, the research examines empirically if the financial ratios which include Volatility, Leverage and Volume are good proxy measures of asymmetric information. Fourth, the idea of measuring the effect of corporate governance as a group of indexes (rather than variables) on the degree of asymmetric information is a new idea and added a new technique in studying the effect of corporate governance on asymmetric information. Fifth, predicting corporate governance indexes' rates and the degree of asymmetric information has added new contributions in the literature of corporate governance and asymmetric information. Accordingly, all stockholders and stakeholders of a company can use these predictions in building their investment and financial strategies. Hence, this adds new dimensions to the studies in the corporate governance area, and also provides a starting point for future research.

The Sudan is currently undertaking a series of National Economic Salvation Programmes designed to arrest the decline in the Sudanese economy and to provide the basis of future economic growth and stability. Given the overwhelming importance of the public sector to the Sudanese economy, it is clear that financial management and audit in the public sector has an important role to play if these programmes are to be successful. Without appropriate financial management systems and controls underlying their operation, it is unlikely that the new policies and institutional reforms envisaged within these programmes will be successful in achieving their proposed goals and objectives. The raison d'etre of this study is then the investigation of the role of financial management and audit in the public sector in the Sudan with a particular focus on the potential for change offered by the adoption of practices of accountability and control found in more developed countries. The underlying thesis is that essentially it is the culture, political history, administrative, commercial and political environment of the Sudan which are the factors primarily responsible for the lack of effectiveness of the financial management and control systems in the Sudan. The early part of this study is largely contextual in nature. The role played by financial management and audit in developed countries today is examined and various mechanisms of accountability discussed. In that Sudan is a developing country and one which has been subject to rapid political change and upheaval since independence was achieved more than 40 years ago, the economic and political landscape of the Sudan is explored in some detail. It is argued that it is only against this turbulent economic and political background that the present role of public sector financial management and audit in the Sudan can be explained and the potential for change identified. Later chapters comprise a detailed investigation and examination of the present systems of budgeting and financial accountability within the Sudanese public sector and of the present role and modus operandi of internal audit and of external audit conducted through the Auditor General's Chamber. These sections are further informed by both a questionnaire study and analysis of a series of interviews with senior officials in the Sudanese public sector organisations. A recurring theme throughout these chapters is the major disparity between the theoretical systems of budgeting, accountability and audit as laid down by regulations and statute and the actuality of practice. In consequence, the systems of controlling and safeguarding public funds in the Sudan are extensively flawed. Perhaps an inevitable result of the weakness and inadequacy of these control systems has been the continuation and growth of fraud, corruption, misuse of government property, and financial irregularity within the Sudanese public sector. A further chapter specifically focuses on the nature and extent of fraud and corruption within the Sudanese public sector. This highlights the manner whereby it has become institutionalised within the economic and social framework and is thereby likely to prove extremely difficult to eradicate. It also suggests that caution should be exercised in advocating rapid transition to mechanisms and forms of accountability and control found in more developed countries. Problems inherent in such a transition are exemplified by the comparative lack of success in developing an effective public sector internal audit function on the basis of government fiat. The study concludes by highlighting its main findings and identifying a number of areas in which change and reform might be considered if public sector financial management and audit is indeed to facilitate and contribute to the regeneration of the Sudanese economy.

A significant number of studies have pointed to inadequate disclosure of the hedging process by companies of both details of instruments used and the clarity of information. Following the adoption of IFRSs, UK companies started reporting under IAS 32 and 39 from the accounting year beginning from 1st January 2005. This required more relevant information to be disclosed when compared with the requirements of FRS 13 under which UK companies reported prior to 2005. The adoption was consistent with reporting practices of other countries within the EU. This study investigates the extent to which non-financial sector firms in the UK have complied with the requirements of IAS 32 and 39 and what the value of this disclosure has been to investors. The thesis reports on a sample of 182 firms using content analysis to evaluate reporting level in comparison with the requirements of the standards. The thesis also uses cross sectional analysis of the market model to assess the extent of disclosure on excess returns. The findings show that companies reported more on derivative use under the international standards than under UK GAAP, suggesting that harmonization of reporting practices are on course in the UK. Secondly, companies that reported financial instruments under these standards have a lower risk-adjusted discount rate. This translates to lower future returns and higher current prices, meaning current increased market values. Further division of companies into those who disclosed at low, medium and high levels, shows that companies that disclosed at medium and high levels have a lower risk-adjusted discount rates. This suggests reduced risk and higher current market values for these firms. These findings supports our earlier findings just as they support the theoretical insight that increased disclosure means increased transparency that should positively affect firm value and vice versa.

No description available.

No description available.

No description available.

No description available.

No description available.

No description available.

Financial derivative instruments can be considered as a value enhancing tool to the firms. The aim of our research is to provide a deep analysis of whether the use of derivatives increases firm value to UK non-financial corporations. It analyzes three main areas: (1) what are the determinants of the use of derivatives; (2) does the use of derivatives materially increase firm value; and (3) does the use of derivatives reduce the market risk exposures firms face. It is demonstrated that, in a world with no taxes, no transaction costs, and with fixed investment policies, hedging with derivatives is irrelevant to firm value. However, theory suggests that derivative instruments can increase firm value when the premises of a perfect market have been relaxed, since they can eliminate corporate tax liabilities, financial distress costs, dependence on costly external financing, and agency costs. These propositions are supported by empirical evidence from the UK context where it is shown that firms use derivatives in order to reduce their expected costs of financial distress and enhance their market values. Moreover, we introduced a mixed result on the relationship between the use of derivatives and firm values. We also achieved a degree of success in providing empirical evidence in support of the hypotheses that the use of foreign currency and interest rate derivatives reduces exchange rate and interest rate exposures