UAE corporations‐specific characteristics and level of risk disclosure

Abstract

Purpose – The purpose of this paper is to explore the relationship between the UAE corporations‐specific characteristics, mainly – size, level of risk, industry type and reserves – and level of corporate risk disclosure (CRD).Design/methodology/approach – Since the UAE is an emerging capital market, the paper relies on the positive accounting and the institutional theories to generate testable hypotheses and explain the empirical findings. The paper draws results depending on a sample of 41 corporations. A risk disclosure index – based on accounting standards, prior literature, and the UAE regulatory framework – has been crafted and calculated for each corporation in the sample. The relationship between the level of CRD and corporations' characteristics is examined using multiple regression analysis.Findings – The results show that corporate size is not significantly associated with the level of CRD. However, the corporate level of risk and corporate industry type are significant in explaining the variati...