CEO CHARACTERISTIC AND FORWARD-LOOKING DISCLOSURE IN PAKISTANI FIRMS

Abstract

Forward-looking disclosure (FLD) is the practice where publicly traded companies share information about their future plans, strategies, and potential risks. This fosters transparency and helps investors make informed decisions. Such disclosures include financial projections and growth strategies. However, predicting the future can be uncertain, and companies must be cautious to avoid legal issues if their projections fall short. This research aims to investigate how the characteristics of CEOs impact FLD, focusing on their busyness, origin, and entrenchment. From 2013 to 2022, data was gathered from 72 non-financial companies that were listed on the Pakistan Stock Exchange. According to the findings, FLD is positively and significantly correlated with CEO busyness, CEO origin, and CEO entrenchment. The research plays an important role by exploring FLD in developing country like Pakistan and offers insights into FLD adoption and how it might impact the unique context of Pakistani firms. Moreover, by exploring CEO characteristics and their impact on FLD in developing countries, it explores unexplored areas and adds to the body of existing research. The study's emphasis on promoting transparency, stakeholder empowerment that holds intrinsic value for Pakistan and similar emerging markets.