The extent of voluntary disclosure in corporate annual reports and its association with security risk measures

Abstract

Corporate annual financial statements have increased in their extent of disclosure over recent years and this trend likely to continue.The Purpose of the study was to examine whether the amount of disclosure was linked to the assesment of stock market risk. Specially, the level of disclosure was examined to see if it was associated with systematic risk д,unsystematic risk,and variance of return. The results revealed no significant association between the amount of disclosure and the level of stock market risk. Thus, although greater amounts of disclosure may be of use to the users of accounts, it is not because of its ability in assesing current and future levels of systematic risk or others types of security risk.