INFLUENCE OF THE BOARD OF DIRECTORS AND SUPERVISORY BOARD ON THE DERIVATIVE'S DISCLOSURE

Purpose: This paper aims to study the influence of the characteristics of the board of directors and the supervisory board on the level of disclosure of information on derivative instruments in companies listed on Euronext Lisbon. Since it is understood that listed companies are the ones that use, with higher frequency, derivative instruments and also because the level of reporting in this type of companies is more rigorous. Methodology: Through a content analysis of the annual reports and accounts and based on a disclosure index, we analyze the information disclosed by companies listed on Euronext Lisbon, for the year 2017. The collected data were also defined and quantified using the statistical program Statistical Package for the Social Sciences (SPSS), using, for this purpose, linear regression models. Originality: This research is innovative because it studies, simultaneously, the influence of the characteristics of the board of directors and the supervisory board dissemination of information on derivative instruments, given that in the literature studies only cover the Board of Directors. Findings: The results show a negative association between the number of independent members of the board of directors and the level of disclosure on derivative instruments, indicating that the lower the number of independent members, the higher the level of information presented. Also, the control variables company size and return on assets are explanatory factors of derivatives' disclosure level. The results also demonstrated the lack of an association between the characteristics of the supervisory board and the level of disclosure about derivative instruments. As in the previous model, in this model, only the control variable company size is a determining factor in the level of disclosure about derivative instruments, revealing that the larger the size of the company, the higher the level of disclosure about derivative instruments. Practical implications: This study contributes to a better understanding of the relationship between the disclosure of information on derivative instruments and the characteristics of the corporate governance model in Portugal, concerning the board of directors and the supervisory board. Research limitations: Small sample, given that companies listed on Euronext Lisbon are limited and the analysis period, which concerns only one accounting period.