Abstract/Summary

Purpose: This research examines the effective communication of financial reporting through the medium of the earnings conference within the Kuwaiti banking sector. Study design/methodology/approach: This study explores the principal areas that users, particularly conference call participants, find relatively uninformative within the financial statements. The paper uses the accounting communication theoretical framework developed by Merkl-Davies and Brennan (2017) and Brennan and Merkl-Davies (2018). Sample and data: This research analyses real-life enquiries by users in the question-and-answer sessions of earnings conferences. The research further developed an analytical procedure to better understand communication effectiveness through the eyes of the accounting users. Results: The thematic analysis of topical enquiries reveals various concerns over reported accounting information. Ambiguities include reported issues relating to provisions for credit losses, segment information, deposits and accounts items, and currency translation. Originality/value: This research contributes to user-centred accounting research and to the few studies that have investigated financial accounting-related problems via earning conferences. Research limitations/implications: The research design and findings provide insights for the banking regulator to understand areas within financial statements that users find uninformative and lack effective communication.