scholarly journals Risk disclosure practice in Saudi non-financial listed companies

2017 ◽  
Vol 14 (4) ◽  
pp. 262-275
Author(s):  
Ramzi Alzead ◽  
Khaled Hussainey
Keyword(s):  
Financial Risk ◽  
Stock Exchange ◽  
Saudi Arabian ◽  
Risk Disclosure ◽  
Listed Firms ◽  
Financial Firms ◽  
Developed Nations ◽  
Corporate Risk ◽  
Disclosure Practice ◽  
Risk Reporting

This study makes a valuable contribution to the existing literature on corporate risk disclosure (RD) in emerging economies with a focus on the Saudi Arabian economy in the context of the Middle East. The vast majority of RD literature has placed emphasis on case studies and systems adopted in developed nations. This study undertakes a detailed analysis of RD practices in Saudi Arabian non-financial listed firms by adopting a quantitative approach for the collection and analysis of the datasets using a sample of non-financial firms listed on the Saudi Stock Exchange (Tadawal) over the period of 2010 to 2014. The study adopts a self-constructed unweighted risk disclosure index utilised in the measurement of risk disclosure. The index thus comprises of 11 main categories and a total of 47 sub-items. The main findings show that the average level of (RD) among all the samples is 17%, the maximum is 55%, and 10 firms did not make any RD at all, and of the majority that do, 63% of the information pertains to financial risk disclosure and related risks and the other 37% to non-financial risk disclosure. The trend for RD over the five-year period of study shows that most companies experienced an increase in their risk reporting activity.

Risk Disclosures in the Annual Reports of Italian Listed Companies

2014 ◽  
pp. 141-168
Author(s):  
Lorenzo Neri ◽  
Antonella Russo
Keyword(s):  
Voluntary Disclosure ◽  
Stock Exchange ◽  
Empirical Work ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Listed Firms ◽  
Risk Disclosures ◽  
The Relationship ◽  
Increases In Risk ◽  
Risk Reporting

The study examines the relevance of risk reporting in the field of firm voluntary disclosure with an empirical work on Italian listed firms. The motivation of this study is the implementation of the Directive 51/2003/CE in Italy (D.Lgs. 32/2007), a sample of companies listed on the Italian Stock Exchange is selected to investigate the relationship between risk disclosure and company characteristics. This paper explores whether there are significant increases in risk reporting over a period of five years and investigates if risk disclosure is influenced only by new law requirement or also by other possible drivers. A content analysis is performed to obtain a measure of risk narrative disclosure. Then several hypothesis tests are carried out to verify whether there are any corporate differences between companies with different levels of risk disclosure, using univariate and multivariate analysis. Our results on the first question document significant increases in Italian companies' levels of risk disclosures. We find also that the disclosure is not only determined by the new law requirements but also by other drivers such as company size.

scholarly journals Corporate risk disclosure of Islamic and сonventional banks

2017 ◽  
Vol 12 (3) ◽  
pp. 247-256 ◽  
Author(s):  
Nejla Ould Daoud Ellili ◽  
Haitham Nobanee
Keyword(s):  
Risk Management ◽  
Financial Risk ◽  
Stock Exchange ◽  
Annual Reports ◽  
Annual Data ◽  
Risk Disclosure ◽  
Strategic Risk ◽  
Corporate Risk ◽  
The Impact

This study examines the degree of the corporate risk disclosure and its impact on the banking performance using annual data of banks listed on the UAE financial markets: Abu Dhabi Stock Exchange (ADX) and Dubai Financial Market (DFM) during the period 2003–2013. The authors conduct the content analysis of the annual reports to measure the degree of the corporate risk disclosure. In addition, they use the panel data regressions to analyze the impact of the corporate risk disclosure on the performance of the banks. The results show low degree of the overall corporate risk disclosure index, strategic risk disclosure index, operational risk disclosure index, damage risk disclosure index, and risk management disclosure index for UAE listed banks. In addition, the results reveal significant differences in the overall corporate risk disclosure, strategic risk disclosure, financial risk disclosure, and risk management disclosure between conventional and Islamic banks. However, the effect of the degree of the overall corporate risk disclosure on the performance of UAE bank has been found insignificant. The findings of this paper contribute by providing a better understanding of risk disclosure practices in UAE and help the banks to optimally disclose their risk, improve the quality of their disclosure practices and enhance the quality of their financial reports. The impact of the corporate risk disclosure on the performance of the banks has not been examined by any of the prior researches. In addition, this paper examines the potential difference between Islamic and conventional banks in their corporate risk disclosure practices.

Financial risk reporting practices: systematic literature review and research agenda

2019 ◽  
Vol 32 (3) ◽  
pp. 185-210 ◽  
Author(s):  
Chandni Khandelwal ◽  
Satish Kumar ◽  
Deepak Verma ◽  
Harsh Pratap Singh
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Financial Risk ◽  
Risk Disclosure ◽  
Content Type ◽  
Reporting Practices ◽  
Single Period ◽  
The Status ◽  
Corporate Risk ◽  
Risk Reporting

Purpose This paper aims to review the status of literature on financial risk reporting practices (FRRP) for the purpose of synthesizing mounting literature to suggest the relevant risk reporting measure across the globe. Design/methodology/approach Using a systematic literature review method, a total of 61 articles from 42 referred journals and international conferences published from 2000 to 2018 are reviewed. Findings It has been found that despite the growing attention on and importance of corporate risk disclosure, academic literature on corporate risk disclosure is limited. Also, research linking risk disclosure with governance mechanisms is rare. Scrutiny of the literature on corporate risk disclosure shows that most of the researchers have focused on the limited or single period to examine the risk disclosure practices, determinants and corporate performance. The limitation of these studies is that with single period data analysis generalization of findings is limited. Findings of longitudinal studies are more reliable, and in extant literature, only a few studies have used data of more than a single period. Originality/value This paper contains a comprehensive listing of publications on financial risk reporting and corporate disclosure and its classification according to various attributes. The paper will be useful to researchers, finance professionals and others concerned with risk reporting to understand the importance of risk disclosure.

scholarly journals MODEL BISNIS DAN PENGUNGKAPAN RISIKO PERUSAHAAN

2020 ◽  
Vol 15 (2) ◽  
pp. 320-334
Author(s):  
Totok Dewayanto
Keyword(s):  
Business Model ◽  
Sampling Method ◽  
Stock Exchange ◽  
Control Variable ◽  
Total Sample ◽  
Hypotheses Testing ◽  
Manufacturing Companies ◽  
Risk Disclosure ◽  
Corporate Risk ◽  
Positive Effect

The aim of this study is to examine business model on disclosure of corporate risk. This study uses Size as a control variable. The population in this study consists of manufacturing companies in Indonesia Stock Exchange for the period 2015 - 2017. Sample determined with purposive sampling method. Total sample of this research is 180 companies. This study used multiple regression analysis for hypotheses testing. The results of this study show that business model has positive effect and significant on corporate risk disclosure.

scholarly journals CORPORATE RISK DISCLOSURE: THE EFFECT OF CORPORATE GOVERNANCE

2021 ◽  
Vol 5 (1) ◽  
pp. 101-113
Author(s):  
Arisona Ahmad ◽  
Muhammad Muhammad ◽  
Dwi Narullia
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Stock Exchange ◽  
Company Size ◽  
Business Risk ◽  
Risk Disclosure ◽  
Initial Hypothesis ◽  
Corporate Risk ◽  
Corporate Business

ABSTRACT This research investigates the role of corporate governance on the disclosure of corporate business risk management with leverage and company size as control variables. Research data were taken from a company that classified as LQ 45 on the Indonesian stock exchange from 2015 to 2018. This research finds that disclosure of business risk management as a sign that management has managed the company with the good attitude increases along with increased corporate governance activities. Leverage and company size also affect company policies regarding the disclosure of corporate business risks. Overall, the results of this study are consistent with the assumption that corporate governance affects company policies regarding business risk disclosure. However, in contrast to the initial hypothesis, the composition of the board commissioners reduces the risk management disclosure activity in the company. This is because the board of commissioners considers that business risk disclosure can increase costs and reduce its competitive advantage so that investors will respond negatively. Apart from these variables, this study contributes to agency theory, where the findings of this study indicate the confirmation of the application of theory in the context of this study. ABSTRAK Penelitian ini menyelidiki peran tata kelola perusahaan terhadap pengungkapan manajemen risiko bisnis perusahaan dengan leverage dan size perusahaan sebagai variable control. Data penelitian meliputi perusahaan yang tergolong LQ 45 di bursa efek Indonesia dari tahun 2015 hingga 2018. Penelitian ini menemukan bahwa pengungkapan manajemen risiko bisnis sebagai tanda bahwa manajemen telah berperilaku baik dalam mengelola perusahaan meningkat seiring dengan peningkatan aktivitas tata Kelola perusahaan. Leverage dan ukuran perusahaan juga mempengaruhi kebijakan perusahaan mengenai pengungkapan risiko bisnis perusahaan. Secara keseluruhan, hasil penelitian ini konsisten dengan dugaan bahwa tata kelola perusahaan mempengaruhi kebijakan perusahaan mengenai pengungkapan risiko bisnis. Namun, berbeda dengan hipotesis awal komposisi dewan komisaris menurunkan aktivitas pengungkapan manajemen risiko diperusahaan. Hal ini dikarenakan dewan komisaris menimbang bahwa pengungkapan risiko bisnis dapat meningkatkan biaya serta menurunkan keunggulan kompetitif perusahaan sehingga akan direspon negatif oleh investor. Selain variabel tersebut, penelitian ini berkontribusi pada teori agensi dimana temuan yang ada menunjukkan konfirmasi dari penerapan teori di dalam konteks penelitian.

scholarly journals Do We Need a Regulation on Dividends for Indonesia Stock Exchange?

2018 ◽  
Vol 20 (1) ◽  
pp. 33 ◽  
Author(s):  
Leo Indra Wardhana ◽  
Eduardus Tandelilin
Keyword(s):  
Life Cycle ◽  
Stock Exchange ◽  
Life Cycles ◽  
Listed Firms ◽  
Financial Firms ◽  
Dividend Payments ◽  
Life Cycle Hypothesis ◽  
Recent Idea

This study examines the dividend life-cycle hypothesis and the propensity of non-financial firms listed on the Indonesia Stock Exchange (IDX) to pay dividends, in light of a recent idea by the IDX to regulate dividend payments. Using several proxies of the life cycle, the results consistently show that Indonesian listed firms follow the dividend life-cycle hypothesis. Our results recommend that if the authority insists on regulating dividend payments, the regulation should take into account the firms’ life cycles. Firms should only be required to pay dividends when they reach a certain stage and/or meet defined characteristics, according to their stage or characteristics.

scholarly journals The effect of risk disclosure on the cost of equity capital and firm value (An empirical study of manufacturing companies listed on the Indonesia Stock Exchange period 2015-2017)

2019 ◽  
Vol 9 (2) ◽  
pp. 133
Author(s):  
Eka Sri Sumardani ◽  
Rr Sri Handayani
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Equity Capital ◽  
Manufacturing Companies ◽  
Cost Of Equity Capital ◽  
Risk Disclosure ◽  
Cost Of Equity ◽  
Net Profit ◽  
The Cost ◽  
Corporate Risk

This study examines the effect of corporate risk disclosure on cost of equity capital and firm value. It uses the ratio of market value to book value, the ratio of leverage, consumer price index, growth, firm size, independent audit committee, and net profit during the study period and net profit in the previous year as control variables. The population consists of all manufacturing companies listed on the Indonesia Stock Exchange for the period 2015 - 2017. The sample was taken using a purposive sampling method, with the total sample of 99 companies. The data were analyzed using multiple regression analysis to test the hypothesis. The results indicate that corporate risk disclosure has a negative effect on the cost of equity capital but corporate risk disclosure has a positive effect on firm value.

Audit committee’s attributes, overlapping memberships on the audit committee and corporate risk disclosure: Evidence from Jordan

Accounting ◽  
2021 ◽  
pp. 423-440
Author(s):  
Malek Hamed Alshirah ◽  
Ahmad Farhan Alshira’h ◽  
Abdalwali Lutfi
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Random Effect ◽  
Random Effect Model ◽  
Audit Committees ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Committee Membership ◽  
Corporate Risk ◽  
Level Of Risk

This paper aims to contribute to the literature by examining whether audit committees' attributes affect risk disclosure practiced by Jordanian listed companies. Selecting a sample of 94 Jordanian companies listed on Amman Stock Exchange, the authors carried out a manual content analysis on annual reports to determine the level of risk disclosure. Random effect model was employed in the analysis. Empirical results show that the audit committee size had a positive effect on the level of risk disclosure. However, there was no evidence that the frequency of the audit committee meetings, expertise or overlapping of the audit committee membership were significantly related to the risk disclosure. The findings are important for standard setters to improve their comprehension about the influence of audit committee in disclosing risk information and reconsider the effective monitoring role played by audit committee.

Effects of Working Capital Management on Profitability: A Case of Nepalese Manufacturing Firms

2021 ◽  
Vol 5 (1) ◽  
pp. 130-147
Author(s):  
Phadindra Kumar Poudel ◽  
Pujan Maharjan
Keyword(s):  
Significant Relationship ◽  
Stock Exchange ◽  
Capital Management ◽  
Working Capital ◽  
Current Ratio ◽  
Cross Sectional ◽  
Working Capital Management ◽  
Listed Firms ◽  
Financial Firms ◽  
Cash Conversion Cycle

The study deals with the relationship between firm characteristics of working capital management and firm profitability in Nepal. It examines if firm performance, return on assets is related to cash conversion cycle, days’ sales outstanding, days’ inventory outstanding and current ratio. The study is based on pooled cross-sectional data of 10 non-financial firms from 2071/72 to 2075/76 of listed firms in the Nepal Stock Exchange. The study employed descriptive and causal-comparative research design to attainthe purpose of this study. The result reveals that the current ratio has a positively significant relationship with profitability and days’ sale outstanding has negatively significant relationship with the financial performance of the firm.

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