The COVID-19 pandemic's impact on financial reporting and disclosure practices: Empirical evidence from Malaysia.

Abstract

The COVID-19 pandemic has fundamentally transformed the business environment, creating significant challenges for financial reporting and disclosure practices worldwide. This research proposal aims to explore the specific impacts of the pandemic on Malaysian firms' financial reporting and disclosure practices. Given the unprecedented disruptions caused by COVID-19, organizations are required to adapt their reporting frameworks to reflect changes in operational performance, revenue recognition, and asset valuations. The study will employ a mixed-methods approach, combining quantitative surveys and qualitative interviews to gather empirical evidence from a diverse sample of Malaysian companies. This approach will enable an in-depth understanding of the adaptations made by firms in response to the pandemic, as well as the challenges they face in meeting regulatory requirements and stakeholder expectations for transparency. Key research objectives include identifying changes in financial reporting practices, investigating compliance challenges, evaluating evolving stakeholder expectations, assessing the role of technology in facilitating reporting, and providing recommendations for enhancing reporting resilience in future crises. This research seeks to contribute to the literature on financial reporting during crises, with a specific focus on the Malaysian context, where limited empirical evidence exists. By examining the impact of COVID-19 on financial reporting practices, the study aims to offer insights for practitioners, regulators, and researchers, ultimately enhancing the understanding of effective financial reporting in times of uncertainty.