International Journal of Commerce and Management Research

Authors
Rao KS, Kidane Kerbeih Desta

Abstract
The objective of this study is to determine the effect of profitability on disclosure practices in the case of Ethiopian commercial banks. The annual reports of selected commercial banks were the sources of data. The proxy used for financial performance is return on asset. The disclosure level of sampled banks is measured by the ratio of disclosure score to maximum total obtainable score. Content analysis was applied to determine the level disclosure using un-weighted checklist. Correlation and regression analyses were made to determine the relation between disclosure practices and profitability. The result indicates that profitability of banks’ measured by return on asset positively affect the level of disclosure of Ethiopian commercial banks. Bank size and board size have no significant relation with the level of disclosure of Ethiopian banks.