Evaluating the Extent of Australian Resource Companies' Estimates of Mineral and Petroleum Reserves

摘要

This paper investigates the disclosure patterns of Mineral and Petroleum Reserve Disclosures within the 2007 annual reports of 113 Australian listed resource companies. The results of regression analysis demonstrate that strength of corporate governance, existence of reserves in foreign jurisdictions, pledging of reserves in debt covenants, lever age, external auditor and firm size are factors which are significant and positively associated with total reserve disclosure patterns. The findings clearly show further disclosures of reserve information are required in or der for stakeholders to make informed economic decisions about resource companies. This paper contributes to an understanding of the extent and rationale behind resource firms' reserve disclosure practices in Australia.