scholarly journals ENVIRONMENTAL RISK DISCLOSURE PRACTICE IN MALAYSIA: AN EMPHASIS ON PLANTATION INDUSTRY

2019 ◽  
Vol 18 (1) ◽  
pp. 117
Author(s):  
Haslinda Yusoff ◽  
Faizah Darus ◽  
Mustaffa Mohamed Zain ◽  
Yussri Sawani ◽  
Tamoi Janggu
Keyword(s):  
Environmental Risk ◽  
Value Creation ◽  
Management Practices ◽  
Environmental Conservation ◽  
Risk Disclosure ◽  
Related Risk ◽  
Initial Idea ◽  
Disclosure Practice ◽  
Risk Reporting

The aim of this study is to investigate the environmental-related risk management practices of publicly listed companies in Malaysia. A content analysis on the 2012 to 2014 annual and sustainability reports of all companies in the plantation industry has been carried out. Using a disclosure rating index, the quantity and quality of the environmental-related risks disclosures have been examined. The results reveal that the quantity and quality of disclosures are rather low and minimal. “Pollution and abatement-commitment” is found to be the most disclosed category and information, followed by “environmental conservation-energy”, whilst, “pollution and abatement–noise outdoor” is the least disclosed one. Generally, majority of the disclosures showed a decreasing trend. These findings generally put forward an initial idea that the plantation companies in Malaysia gave minimal attention to environmental risk reporting henceforth signify that disclosure practice is not critical to their sustainability agenda and value creation.

Do Risk Disclosures Relating to the Use of Financial Instruments Matter? Evidence from the Australian Metals and Mining Sector

2019 ◽  
Vol 54 (04) ◽  
pp. 1950017
Author(s):  
Kevin Huu Phat Thai ◽  
Jacqueline Birt
Keyword(s):  
Value Relevance ◽  
Individual Risk ◽  
Risk Category ◽  
Financial Instruments ◽  
Risk Disclosure ◽  
Mining Sector ◽  
Regulatory Changes ◽  
Related Risk ◽  
Risk Disclosures ◽  
Risk Reporting

This paper investigates the value relevance of risk disclosures relating to the use of financial instruments in the Australian metals and mining sector. The metals and mining sector is the largest sector in Australia by the number of companies and includes several of the world’s largest diversified resource producers. Using a manually constructed disclosure index based on AASB 7 Financial Instruments: Disclosures, we find that financial instrument-related risk disclosures provide useful information to equity investors. In terms of individual risk category, liquidity risk is shown to be the most informative risk disclosure. We contribute to a stream of the literature examining the informativeness of risk disclosures. The results of this study have implications for several stakeholders regarding the quality assessment of risk reporting. In addition, the findings are of interest to standard setters since further regulatory changes are under consideration to improve the presentation and disclosure of financial instruments.

scholarly journals Determinants and impacts of risk disclosure quality: evidence from China

2018 ◽  
Vol 19 (4) ◽  
pp. 518-536 ◽  
Author(s):  
Tamer Elshandidy ◽  
Lorenzo Neri ◽  
Yingxi Guo
Keyword(s):  
Content Analysis ◽  
Ordinary Least Squares ◽  
Market Liquidity ◽  
Risk Disclosure ◽  
Disclosure Quality ◽  
Content Type ◽  
Financial Firms ◽  
The Impact ◽  
Risk Reporting

PurposeFew studies have focused on emerging markets owing to difficulties in identifying the real effect of disclosures on these economies. To fill this gap, the purpose of this paper is to first: investigate the main drivers for risk disclosure quality for Chinese financial firms, second: further study the impact of such disclosure on market liquidity.Design/methodology/approachThe sample comprises all financial firms listed in the Shanghai A-shares market for the period 2013–2015. By relying on manual content analysis of annual reports, the risk disclosure quality is measured through a multidimensional approach which encompasses three factors: quantity of disclosure, coverage of disclosure and the semantic properties of depth and outlook. The findings of this paper are based on ordinary least squares and fixed-effects estimations.FindingsThe findings suggest that firm characteristics (especially size) influence risk disclosure practices of Chinese financial companies. Furthermore, the authors found that risk disclosure quality has an impact on market liquidity, and when the authors analysed each year the authors noticed that the results were driven by the year 2013; moreover, the authors noticed no or little significance from the period of the emerging financial crisis.Research limitations/implicationsThe sample of this paper is limited to financial firms in China. The usage of manual content analysis limits the authors’ ability to investigate risk reporting drivers and its impact on market liquidity on a large scale.Practical implicationsThe importance of this paper stems from documenting several reporting incentives concerning not only firms’ quantity, but also firms’ quality of risk reporting. Collectively, the findings support activism for reforms and the enhancement of regulations in China in order to make the market more efficient.Originality/valueThis paper provides new evidence for financial companies in China on the principal drivers for risk disclosure quality and highlights how the quality of such disclosure impacts market liquidity. Furthermore, this paper confirms previous findings on the Chinese market (Ball et al., 2000; Zou and Adams, 2008) in which, given a decreasing but still strong state presence, there is higher stock volatility and weak corporate governance.

Investigation of risk management and risk disclosure practices of Italian listed local utilities

2013 ◽  
pp. 121-167 ◽  
Author(s):  
Selena Aureli ◽  
Federica Salvatori
Keyword(s):  
Risk Management ◽  
Qualitative Methodology ◽  
Management Practices ◽  
Service Providers ◽  
Document Analysis ◽  
Risk Exposure ◽  
Risk Disclosure ◽  
Utility Companies ◽  
Utility Services

Local utility services deeply affect the overall quality of life of a country's population. For this reason service providers should pay strong attention to risk management practices, but also to the external communication of both the risk exposure and the risk responses. Following a qualitative methodology, this paper aims at exploring the risk management and risk disclosure practices of five Italian listed local utility companies combining two research methods: questionnaire and document analysis. Results show that these Italian listed local utilities are characterized by different maturity levels of risk management practices, which are not extensively disclosed in public reports and documents. Interestingly, the link between the level of disclosure and maturity of risk management practices is confirmed just for those companies that seem to be the most mature in terms of risk management.

Financial Risk Disclosure: Evidence From Albanian And Italian Companies

2017 ◽  
Vol 1 (2) ◽  
pp. 182 ◽  
Author(s):  
Grazia Dicuonzo ◽  
Antonio Fusco ◽  
Vittorio Dell’Atti
Keyword(s):  
Financial Risk ◽  
Management Practices ◽  
Small Sample Size ◽  
Risk Information ◽  
Small Sample ◽  
National Standard ◽  
The European Union ◽  
Risk Disclosure ◽  
The Balkans ◽  
Risk Reporting

<p>In recent years standard setters, regulators and professional bodies worldwide have shown an increased interest in risk reporting. This has reflected the fallacy of the financial reporting model to communicate a company’s risk profile, the recent scandals and the financial crisis. The European Union, the International Accounting Standards Board (IASB) and other national standard settershave introduced specific requirements in order to impose companies to highlight the principal financial risks and uncertainties that they face.The idea is that high-quality risk disclosure help investors and other market participants in their decision-making process, by providing a better understanding of the risk exposures and risk management practices of companies.</p><p>Previous studies show large heterogeneity in risk reporting within individual countries and identify size as key determinant of risk disclosure. A few researches propose a cross-country investigation of risk reporting and to date there is a lack of evidence about companies operating in Southern Europe, especiallyin the Balkans.</p><p class="AbstractText">The aim of this study is twofold. First, we fill this gap by analyzingrisk reporting regulations in Albania and in Italy to examine the different requirements. Second, we examine risk information disclosed by a sample of 12 Albanian companies and 12 Italian companies within their annual reports, using content analysis. Due to small sample size we offer preliminary findings about financial risk disclosure. The results show that on average Albanian companies disclose less information on financial riskthan Italian companies. Different explanations can be given for this evidence: i) risk disclosure regulationis less incisive in Albania, because it is limited to inform investors about the relevance of financial instruments and the terms and conditions of loans; ii) Albanian companies have fewer incentives to disclose risk information than Italian companies.</p>

scholarly journals Relationship between Corporate Governance and Risk Disclosure Practice from Malaysia Perspective

2019 ◽  
Author(s):  
Ag Kaifah Riyard Bin Kiflee ◽  
Mohd Noor Azli Bin Ali Khan
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Global Financial Crisis ◽  
Auditor Independence ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Accounting Scandals ◽  
The Relationship ◽  
Disclosure Practice

Past accounting scandals (Transmile and Megan Media) and recent 2007/2008 global financial crisis have triggered the need for vibrant risk management and high quality of risk reporting through sound corporate governance. This study will measure risk management through the disclosure in the annual reports. It wishes to determine the presence of risk information within the annual report of non-financial companies in Malaysia. The objective of the study is to examine the relationship between corporate governance characteristics and risk disclosure practice. The corporate governance characteristics examined include board independence, the board size, board gender, auditor independence and auditor tenure. A total of 721 companies are expected to be analyzed based on the Bursa Malaysia list from 2008 to 2017. To determine the level of risk disclosure, this study will employ content analysis. Descriptive statistics and multiple regression will be used in this study to examine this relationship.

Risk disclosure in listed Greek companies: the effects of the financial crisis

2020 ◽  
Vol 33 (4/5) ◽  
pp. 615-633
Author(s):  
Fragiskos K. Gonidakis ◽  
Andreas G. Koutoupis ◽  
Anastasios D. Tsamis ◽  
Maria-Eleni K. Agoraki
Keyword(s):  
Content Analysis ◽  
Financial Crisis ◽  
Stock Exchange ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Content Type ◽  
Reporting Practices ◽  
Athens Stock Exchange ◽  
Risk Reporting

Purpose The purpose of this study is to investigate risk disclosure in listed Greek companies. The effects of the financial crisis were also considered. Design/methodology/approach This study aimed to determine the risk-reporting practices of Greek’s non-financial companies listed on the Athens Stock Exchange through a content analysis of their annual reports. Findings Risk identification and anticipation protect businesses and create shareholder value. In recent years, particularly since the economic crisis, risk has become one of the most important business issues. This study concluded that during the crisis, there was an increase in disclosure. Financial, personnel and legal risks were the most reported types of risk. This study also found liquidity to be a very important issue. Research limitations/implications Content analysis has limitations because subjectivity cannot be eliminated. This study measured only the quantity, not the quality, of risk disclosure. The quality of risk reporting will be examined in future research. Originality/value This is the first study on risk disclosure in the non-financial companies listed on the Athens Stock Exchange to conduct a content analysis of the corporate annual reports.

scholarly journals Does Structural Capital Affect SDGs Risk-Related Disclosure Quality? An Empirical Investigation of Italian Large Listed Companies

2020 ◽  
Vol 12 (5) ◽  
pp. 1776 ◽  
Author(s):  
Francesco De Luca ◽  
Andrea Cardoni ◽  
Ho-Tan-Phat Phan ◽  
Evgeniia Kiseleva
Keyword(s):  
Positive Association ◽  
Specific Reference ◽  
Risk Disclosure ◽  
Disclosure Quality ◽  
Environmental Disclosure ◽  
Nonfinancial Information ◽  
Related Information ◽  
Structural Capital ◽  
Risk Reporting

In a context of widespread acceptance and implementation of the United Nations Sustainable Development Goals (SDGs), this paper discusses the possible relationship between intellectual capital (IC) and nonfinancial information (NFI), particularly related to SDGs and corporate social responsibility (CSR) in a stakeholder engagement perspective. Prior studies called for further investigation about nonfinancial risk disclosure and claimed that companies mandated to disclose risk-related information tend to focus mainly on financial risks. Therefore, given the growing attention of regulators to the content of mandatory companies’ NFI brought to the Directive 2014/95/EU, this study intends to contribute to fill this literature gap by investigating the drivers of risk-related disclosure quality (RDQ) and to what extent it could be affected by the structural capital (SC), as one of the components of IC. The empirical analysis is based on a sample made of 51 Italian large undertakings and groups. The study uses content analysis to assess the RDQ from firms’ corporate reports. Regression analysis is used to examine if there is an influence of SC toward RDQ, both considered as a single information package and with specific reference to environmental disclosure. Results reveal that a positive association exists between RDQ and SC. Moreover, it is providing some support for the positive correlation between SC and the firm’s size. In this sense, the paper contributes to existing risk reporting literature as a pioneering study identifying an IC driver to determine the quality of risk and risk management information. For regulators, this study highlights how, in a context of mandatory disclosure, the quality of information could also depend on firm characteristics (SC). For practitioners, the paper helps in understanding the role of IC in order to increase the quality of the corporate risk reporting.

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.

An exploratory study of intangibles risk disclosure in annual reports of banking companies from the UK, US, Germany and Italy - Some descriptive insights

2013 ◽  
pp. 81-120 ◽  
Author(s):  
Susanne Durst
Keyword(s):  
Intellectual Capital ◽  
Exploratory Study ◽  
The United States ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Related Risk ◽  
Potential Benefits ◽  
Report Data ◽  
Key Drivers ◽  
The Uk

Intangibles are viewed as the key drivers in most industries, and current research shows that firms voluntarily disclose information about their investments in intangibles and their potential benefits. Yet little is known of the risks relating to such resources and the disclosures firms make about such risks. In order to obtain a more balanced and complete picture of firms' activities, information about the risky side of their intangibles is also needed. This exploratory study provides some descriptive insights into intangibles-related risk disclosure in a sample of 16 large banks from the United States (US), United Kingdom (UK), Germany and Italy. Annual report data is analyzed using the three Intellectual Capital dimensions. Study findings illustrate the variety of intangibles-related risk disclosure as demonstrated by the banks involved.

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