Multi-theoretical Perspectives for Corporate Risk Disclosure: a Literature Review

Abstract

The purpose of this article is to review and discuss theoretical approaches commonly used to study corporate risk disclosure (CRD) behaviour. The review presents areas of convergence and divergence in understanding CRD so as to build a case for an integrated theoretical perspective. The multi-theoretical approach will provide wide conceptual lens to understand, explain CRD behaviour, and identify ways in which CRD can attain high quality. The paper reviewed 52 articles from accounting and non-accounting journals published between 1990–2019. The journals reviewed were identified according to the UK's Association of Business Schools (ABS) journal quality ranking guide. The paper responds to literature calling for CRD quality to improve among policymakers, regulators, and academicians. The paper argues that any attempts to enhance CRD quality should start by establishing an integrated framework that will help in understanding the phenomena in several perspectives in order reconcile inconsistent results of prior studies.