Disclosure Checklist Research Articles

Disclosure of the six capitals in strategy, risk and performance sections: Evidence from South Africa

Purpose: This article assesses the integration of multi-capitals in the strategy, risk and performance disclosures in 240 integrated reports of 30 South African-listed companies between 2013 and 2020.Design/methodology/approach: A disclosure checklist is developed interpretively, based on prior literature dealing with integrated reporting and thinking. A qualitative content analysis was conducted to evaluate the level of detail of multi-capital disclosures in the strategy, risk and performance sections of the sampled companies’ integrated reports. Descriptive trends are discussed, and non-parametric tests were conducted to explore associations between the grouping variables (year, industry and market capitalisation) and level of detail and capital presence, respectively.Findings/results: Companies are increasingly adopting a multi-capital approach to risk management, decision-making, strategies and operations and are disclosing the inputs, processes, outputs and outcomes in their integrated reports. The disclosure of multi-capital outcomes increases as an integrated logic takes hold in the companies. Significant positive associations were evident between the level of detail and the grouping variables. On average, companies included between four and six capitals in all integrated report sections. Financial capital and social and relationship capital were most prominent. Natural capital was the least referenced.Practical implications: This article provides companies with a practical method to evaluate and enhance their integrated reporting strategies focussing on a holistic adoption of multi-capitals in strategy, risk and performance sections.Originality/value: The longitudinal nature of the study, can add to the growing body of research on integrated thinking and reporting, particularly from a developing economy perspective.

Female Directorship And Corporate Social Responsibility Disclosure In Nigeria: The Moderating Role Of Firm Size

Companies have witnessed more stringent pressure for corporate social responsibility reporting and the pressure has become critical for their long-term viability and success. Many studies have been conducted to determine the effect of corporate governance mechanism on corporate social responsibility disclosure both locally and internationally, but the studies have yielded inconsistent results. The moderating role of company size on the effect of corporate governance mechanism on corporate social responsibility disclosure has not been significantly studied in the Nigerian context. This study is to examine the effect of corporate governance mechanism on corporate social responsibility disclosure, and the moderating role of firm size. Ex-post facto research design was employed with cross sectional and time series dimensions. Secondary data was obtained from annual reports and accounts of listed manufacturing companies in Nigeria from 2012 to 2023 using disclosure checklist adopted from previous studies. The data was analysed using ordinary least square regressions to determine the effect of female directors on corporate social responsibility disclosure and the moderating role of firm size in listed manufacturing companies in Nigeria. The findings of the study revealed that: female directors have a positive and significant effect on corporate social responsibility disclosure in Nigeria; Firm size has a significant and positive moderating effect on the effect of female directors on corporate social responsibility disclosure of listed manufacturing companies in Nigeria. The study recommends that government and policy makers should set minimum benchmark for female directorship on corporate governance in Nigeria in order to encourage more corporate information disclosures

Dampak Kualitas Auditor dalam Pengungkapan Emisi Karbon Terhadap Nilai Perusahaan: Studi Empiris pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Periode 2019-2022

This research aimed to test and analyze the effect of carbon emission disclosure and enviromental performance on firm value with audit quality as a moderating variable. Carbon emission disclosure is measured by calculating the carbon emission disclosure checklist index, enviromental performance is obtained from secondary data from the Indonesian Ministry of Envirement’s PROPER report, firm value is measured by Tobin’s Q, and audit quality is measured by the size of KAP. The sample was taken using a purposive sampling technique totaling 28 non-financial companies listed on the IndonesiaStock Exchange (IDX) for teh 2019-2022 period and having a PROPER rating for the 2019-2022 period. The data analysis technique used Structural Equation Modeling Partial Least Square (SEM-PLS) analysis with the help of the WarpPls 7.0 program. The result of the study indicate that: 1) There is a positive effect of carbon emission disclosure on firm value. 2)There is a positive effect of enviromental performance on firm value. 3) Audit quality does not moderate the effect of carbon emission disclosure on firm value. 4) Audit quality does not moderate the effect of enviromental performance on firm value.

ACCOUNTING INFORMATION DISCLOSURE: HOW FAR IS SO FAR

Purpose: Accounting information asymmetry increases moral hazard, agency costs, shareholders’ discontent, and further aggravates the discomfort of minority shareholders. As such, how far is so far when connecting information disclosure with firm characteristics has remained a debate. This study thus investigated the nexus between firm characteristics and accounting information disclosure with emphasis on the banking sub-sector in Nigeria. Theoretical Framework: Accounting information disclosure is not hidden from theoretical discussions within the corridors of opportunistic behaviors, agency-theory and information asymmetry or information failure theory Design/Methodology/Approach: Annual reports of eleven top banks in Nigeria were analyzed covering a period of 5 years from 2010 to 2014 using the firm characteristics – size, profitability, age, and international presence. A disclosure checklist consisting 137 voluntary items was developed and multiple regression analysis performed. Findings: The results revealed a positive significant relationship between accounting information disclosure with age, international exposure, and a negative significant relationship was observed for profitability and size. Generally, the level of disclosure in the banking sector was found to be high at 62%. Research, Practical & Social Implications: This study recommends accounting information democratization and sharing to build and restore confidence in banks’ activities and public perception. Originality/Value: The investigation on how far is so far in accounting information disclosure should be perceived from the eye of the stakeholders investments. Be that as it may, it is only fair and ethically moral for persons/groups that have invested in a business and or in a bank to regularly have access to concrete and verifiable mandatory and voluntary information disclosure on the financial position of their hard-earn funds to make reasonable decisions.

Corporate Governance Disclosure in the Banking Sector of Bangladesh: Evidence from the Conventional Private Commercial Banks

Corporate governance is necessary for any organization to be accountable and responsible. This study looked into the relationship between CG mechanisms and CG disclosure levels using five listed conventional PCBs as a sample over a five-year period spanning 2016 to 2020. An unweighted disclosure checklist was utilized in this study to measure CG disclosure levels. To determine whether there is any significant relationship between the level of CG disclosure and CG mechanisms, multiple regression analysis has been done. Based on the empirical results, it can be concluded that there is a significant and insignificant association between CG mechanisms and the CG disclosure levels, but there is only a visible and significant difference in these areas between the sample banks. The results of the multiple regression analysis indicate that the log percentage of female directors does not significantly relate to the levels of CG disclosure. On the other hand, the extent of CG disclosure is significantly associated with other variables, including board members, percentage of audit committee members, and percentage of independent directors, log total assets, log total revenues, and log listing age.

Do Enterprise Risks Management, Green Intellectual Capital and Business Ethics Improve Sustainable Finance At Financial Institutions In Indonesia?

Purpose: This study aims to test and analyze the effect of Enterprise Risk Management (ERM), Green Intellectual Capital (GIC), and Business Ethics (BE) on Sustainable Finance (SF).
 
 Theoretical reference: The theory of legitimacy was first expressed or presented by (Dowling & Pfeffer, 1975). Tracing back to its roots, the term "legitimacy" comes from the Latin word "legitimus", which translates to "according to law" (Danovan, O, 2000).
 
 Method: This research uses a quantitative descriptive verification method. The data used in this study are secondary data in the form of financial reports, annual reports and sustainability reports on the idx website. The population in this study are financial services companies listed on the IDX for the 2018-2021 period. The model in this study uses multiple regression, because the independent variables in this study consist of several variables.
 
 Results and Conclusion: The results showed that ERM has a positive effect on sustainable finance, GIC has a positive effect on sustainable finance, and BE has a positive effect on sustainable finance. ERM, GIC, and BE can benefit companies in several ways, including improving financial performance, reducing costs, and improving reputation. The results of this study contribute to the development of management accounting and business ethics that sustainable finance is influenced by several important factors, namely ERM, GIC, and BE.
 
 Implications of research: Research shows that ERM can improve financial sustainability in financial institutions in Indonesia, the implication of which is the importance of awareness towards more holistic and integrated risk management within companies. This may mean financial institutions should focus on developing more effective ERM processes, which can help them identify and manage risk in a more efficient way. This research can be used to enrich the sustainable finance literature, especially regarding the development of its measurement. The index measurement uses a disclosure checklist measurement and uses dumies so that it allows the appearance of subjectivity. There is a need for direct verification of some sample companies.

The Relationship Between Climate Risk Disclosure and Performance on Mining Companies: Evidence From A Developing Economy

The main aim of this study is to develop an unweighted climate risk disclosure index to assess whether climate risk disclosure predicts mining companies’ performance.The catastrophic nature of climate risk has become more topical in recent years. Yet, academic research efforts have been directed to climate risk from the perspective of developed economies only and very little is understood about it in developing economies. 216 firm observations in mining sector for the period covering 2016 through 2021 were analysed using descriptive statistics and estimated generalised least square with period seemingly unrelated regression. The results suggest that the climate risk disclosure is significant in predicting company performance as proxied by earnings per share (EPS), economic value added (EVA) and return on equity (ROE). Policy makers and regulators should encourage companies to intensify climate risk disclosure so as to maximise value and benefit relevant stakeholders. The study contributes to the ongoing debates on climate risk by focusing on extractive industry, mining sector in a developed economy setting. Methodologically, the study developed an unweighted disclosure checklist that can guide companies on pertinent climate risk issues to disclose.

Voluntary Disclosure of R&D Activities: A Comparative Study of Selected IT and Pharmaceutical Companies in India

This study looks at voluntary R&D disclosure trends in the annual reports of a few Indian IT and pharmaceutical industries. A self-created R&D disclosure index has been created for the study's purposes. Secondary data provide the foundation of this investigation. The chosen IT and pharmaceutical firms' public annual reports were used to get the data. The study examines the extent of voluntary R&D disclosure both at the aggregate level and is based on a disclosure checklist comprising 52 elements of R&D information. Descriptive statistics have been utilised for the comparison of IT and pharmaceutical firms. The outcome demonstrates that, in comparison to IT businesses, pharmaceutical companies have disclosed more R&D information in annual reports in the context of total voluntary R&D disclosure

Impact of institutional ownership on environmental disclosure in Indonesian companies

PurposeThis study aims to investigate the effect of the classification of origin country of institutional shareholder (domestic, developed and developing country) and its status on stock exchange (listed and unlisted) on environmental disclosure level in Indonesian companies.Design/methodology/approachThe data set comprises 474 non-financial firms listed in Indonesian Stock Exchange (IDX) for the period of 2017 to 2019. The study uses an environmental disclosure checklist to measure the extent of environmental disclosure in companies’ reports. Panel regression analysis technique is adopted to investigate the association between total percentage of shares held by institutional shareholders based on the classification of origin country and the status in stock exchange, and the extent of environmental disclosure.FindingsThe study reveals that the extent of environmental disclosure is positively and significantly associated with institutional investors from domestic, developed countries, listed and unlisted institutional investors. Further analysis shows interesting results that institutions from developing countries have a negative and significant relationship with environmental disclosure in non-sensitive industries.Research limitations/implicationsThe authors recognize the issue of authors’ subjectivity in the measurement process of environmental disclosure. The sample for this study encompasses Indonesian listed firms. Thus, the results may not be generalized to Indonesian unlisted firms and other countries or regions.Practical implicationsThis study suggests managers to engage more with institutional shareholders because they have greater concern for environmental disclosure practices. The current study also suggests managers to make strong environmental policies as they are important to ensure that institutional shareholders’ investments are safe.Social implicationsGiven the positive impact institutional shareholders have on the level of environmental disclosure, it indirectly indicates that institutional shareholders have a strong motivation to make the world a better place.Originality/valueThis study offers in-depth insights into the effect of institutional ownership on environmental disclosure based on the classification of origin country and listing status of institutional investors.

EXAMINATION OF COMPLIANCE WITH DISCLOSURE REQUIREMENTS OF IFRS 16 BY LISTED LOGISTICS FIRMS IN NIGERIA

This paper surveyed the compliance level with the disclosure requirements of IFRS-16 among transportation/logistics firms listed in the NSE. The sampled 15 firms that claim to adopt and apply IFRS-16 starting effective January 2019. We examined their varying degree of disclosure compliance based on their audited annual reports for 2019 & 2020. A compliance checklist index based upon the IFRS compliance, presentation and disclosure checklist 2021 and KPMG Guide to annual financial statements – Disclosure checklist 2020 was adapted for this study. We found that disclosures were generally not comprehensive enough in terms adequacy of the disclosures relating to adoption of the new standard, judgement made by management in the application of the company’s accounting policy, insufficient entity-specific information, when explaining their accounting policy for leases. Most of the entities failed to disclose the measurement policy applied to right of use assets at transition and how the company’s incremental borrowing rate is determined. The surveys also provide indications that the level of compliance differs among the subsector ranging from low to moderate level of disclosure. This level of insufficiency of disclosures is an indication of lack of necessary transparency to investors regarding exposures, risks, uncertainties, and leverage which raise doubt over whether the disclosure objective of IFRS16 had been met, as envisage by the standard.

An Initial Study of Disclosures Related to Responsible Investing Implementation: A South African Perspective

Purpose: Financial institutions (FIs) such as banks, insurance companies and pension funds have a significant impact on the environment through the financing they provide. Mining and oil and gas companies receive funding and use this for different projects which may have environmental consequences. This study examines the extent to which both the grantor and the receiver of finance identify and apply responsible investment (RI) practices when making investment decisions
 Design/methodology/approach: A detailed literature review was used to construct a disclosure checklist to assess the implementation of RI principles. The population is all companies listed in the financial services, banks, mining and oil and gas sectors of the Johannesburg Stock Exchange (JSE), who had published integrated reports.
 Findings: The results of this research indicate that the extent of RI disclosure in FIs in South Africa is limited. The extent of RI disclosure for the mining and oil and gas companies is stronger than for FI’s.
 Originality/value: At present, there are no studies which have investigated the disclosure of RI principles applied in South Africa. This study constructed a RI disclosure checklist, drawing on the principles of RI to understand the implementation of RI in South Africa.

Relationship between Corporate Disclosure Score and Different Corporate Determinants: Evidence from Conventional Banks in Bangladesh

The main goal of this study is to evaluate the relationship between corporate disclosure scores and their different determinants. To achieve this aim, secondary data have been employed and collected from the five years annual reports of the ten sample banks. To reveal consolidated disclosure scores, this study used an unweighted disclosure checklist. It has been found that the mean value of the tight disclosure score of the sample bank_9 is 76.45 percent which is higher, and the lowest mean value of the consolidated disclosure score is 71.24 percent, which is visible in the case of sample bank_8. Furthermore, there is no significant variation in tight disclosure scores among the sample banks over the study period. This study has considered the various corporate determinants and employed the ANOVA test and multiple regression analysis to evaluate the relationship between the different corporate determinants and corporate disclosure scores. The results of the ANOVA test illustrated that there is significant variation in other determinants of corporate disclosure among the sample banks. The findings of multiple regression analysis indicate that the R square value is 0.717, which confirms that the dependent variable, like the level of corporate disclosure, is explained by 71.70% of the independent variables, such as total assets, total revenues, number of branches, number of employees, meal members, female members, independent directors, audit committee members, capital adequacy ratio, debt equity ratio, loan deposits ratio and debt assets ratio. The results of the model summary report that the significance level of the overall model is lower than 5%, which means that the entire independent variables have significantly influenced the corporate disclosure score.

Effect of Integrated Reporting on Firm’s Value: The Nigeria Manufacturing Sector Experience

The main objective of this study was to investigate the effect of integrated reporting on firms’ value drawing samples from listed manufacturing firms in Nigeria between the periods of 2011-2020. In this study, human capital disclosure index, manufacturing capital disclosure index, and social and relationship capital disclosure index were the integrated reporting proxies adopted to evaluate the effect on value of Nigeria manufacturing firms. Firms’ value was measured in terms of Tobin Q, and year price index was adopted as the control variable. Ex post factor research design was used and the study made use of secondary data sourced from the sampled companies’ annual reports and Nigeria Exchange Group Fact book. Data for integrated reporting variables were derived using disclosure checklist developed in accordance with the integrated reporting framework disclosure guidelines. Purposive sampling technique was used to select 51 out of the 59 manufacturing companies listed on the Nigeria Exchange Group. In order to examine the cause-effect relationship between the dependent variable and independent variables as well as to test the formulated hypotheses, the researcher used a robust regression analysis. The results of the analysis showed that the disclosure of human capital information in the annual report of listed manufacturing firms in Nigeria significantly improves the firm’s value. Based on this findings, it was concluded that only the variable of human capital disclosure has significant effect on firms’ value. Finally, the study recommended that the management of manufacturing firms in Nigeria should capture all disclosure items concerning human capital in their financial statements as this tends to improve the value of the firm and increase shareholders’ wealth. It was also recommended that management should develop an inclusive organizational culture for disclosing non-financial information with long term value creating capacity as they can maximise the market value of the firm over the short, medium and long term horizon.

Development of a Disclosure Index for Lease Accounting Policies: Evidence from Romanian Banks

Leasing is an important financing solution used by banks to carry out their daily operations. From a lessee perspective, IFRS 16 changed completely the accounting landscape for lease contracts. A right of use assets and a corresponding lease liability must be recognized in the lessees’ balance sheets. Additionally, extensive disclosures are required. This paper aims to study the extent to which Romanian banks comply with IFRS 16 disclosure requirements. The population includes 23 Romanian banks. To carry out this research, we employed the content analysis technique and reviewed the IFRS 16 disclosures from the 2020 IFRS financial statements. To measure compliance, we developed a dichotomous and unweighted disclosure checklist, which includes 34 items grouped into six categories. The results of our study revealed that, in the first year following the IFRS 16 transition, Romanian banks recorded an average 62% level of compliance with IFRS 16 disclosure requirements. There is a lot of room for improvement in the following years, especially for top ten ranked banks.

Board Structure as Determinant of Corporate Governance Disclosure Practices and Compliance: The Moderating Influence of CEO Power

Today’s dynamic business environment, has seen corporate transparency, financial accountability, and compliance with disclosure requirements as the basis for comprehensive company governance mechanism. The Board of a company performs a central role in ensuring good corporate governance practice. To this end, this study examines board structure as determinant of corporate governance disclosure practices of listed companies in Nigeria. The study adopted the cross-sectional and longitudinal research designs and used content analysis of corporate financial statements and a modified corporate governance disclosure checklist based on NCCG (2018) standard to examine the level of disclosures by sampled industrial goods firms for the period 2016 to 2020. Findings of the study reveal that board independence is a major determinant of corporate governance disclosure. The study also reveals that CEO power and ethnic minority diversity have positive but not significant association with corporate governance disclosure, and that CEO power weakens the positive influence of board independence on corporate governance disclosures. The study concludes that board structure is a determinant of the corporate governance disclosure practices of listed industrial goods companies in Nigeria and recommends amongst others the need to review CAMA (2020) and NCCG (2018) to strengthen board composition and independence.

Firm specific characteristics and voluntary disclosure: evidence from a developing country

This paper assesses the levels of voluntary disclosure in the annual reports of companies in Sri Lanka, a developing country, and identifies firm-specific characteristics that impact on voluntary disclosure of the listed companies in Sri Lanka. Eight variables, representing firm specific characteristics, were tested to assess the levels of disclosure of 100 listed companies. The study adopts a disclosure checklist consists with 20 variables to identify the levels of disclosure. The relationship between firm specific characteristics and the level of disclosure was examined using unranked Ordinary Least Square approach. The findings of the study were analyzed using a stakeholder theory perspective, which attempts to explain why management will meet the expectations of certain stakeholders, typically those in a position of power or influence. Findings reveal that four variables namely firm size, profit margin, leverage and audit firm size are positively and significantly associated with the level of disclosure. This means that large size companies have more interest in disclosing additional information as compared to small size companies. Further, firms with a high profit margin disclose more information than firms with a low profit margin. Moreover, debt capital holders and large audit firms have more influence to encourage companies to disclose voluntary information. The results of this study are useful for the managers and investment community to assist in evaluating the extent of voluntary disclosure by Sri Lankan listed companies and explaining the variation of disclosure. Further, the results provide useful insights to policy makers and regulators who may want to improve voluntary disclosures in their countries, especially in Sri Lanka.

Corporate Governance on Environmental Protection Index of Sustainability Reporting in Oil and Gas Companies Quoted in Nigeria

Adequate sustainability of environmental reporting reveals the extent of transparency and corporate efforts in protecting the environment. The study investigated the effect of corporate governance on environmental protection index of sustainability reporting in oil and gas companies quoted in Nigeria. The research design adopted was expost-facto. The population of the study is the entire 12 oil and gas companies listed in the Nigerian stock exchange market from which 8 companies were selected using judgmental sampling technique. The data analyzed were obtained from the financial statement of the selected companies for the period of 15 years ranging from 2006 to 2020. Environmental disclosure checklist in line with Global Reporting Initiatives was adopted to measure the proxies of environmental protection index of sustainability. Multiple regression was used in analyzing the data.it was revealed that corporate governance had significant effect on environmental protection, (AdjR2 = 0.123; Walt-test = 39.29; P-value = 0.000). Also, Firm size and firm leverage significantly moderated the effect of corporate governance on environmental protection, (AdjR2 = 0.216; F-Statistics = 34.58; P-value = 0.000). the study concluded that corporate governance significantly impact on environmental protection and also that firm size and firm leverage moderated the effect of corporate governance on environmental protection, it was recommended that the management should ensure strong commitments and adequate disclosure of all environmental protection policies, and set full compliance as priority; also that government should provide an enabling business operating environment which will enhance effective environmental sustainability reporting.

Corporate Governance and Environmental Policy Index of Sustainability Reporting in Oil & Gas Companies Quoted in Nigeria

Evidently, environmental sustainability reporting was faced with unprecedented challenges due to environmental degradation, inadequate handling of environmental protection by polluting-intensive companies’ selective disclosure approach predominantly in the oil and gas companies in Nigeria. This work aimed at examining the effect of corporate governance on environmental policy index of sustainability reporting in oil and gas companies quoted in Nigeria. Expost-facto research design was adopted and the population of the study comprised all the 12 oil and gas companies quoted in Nigeria as at 31 st December 2020, from which a sample of 8 companies was formulated. Data were extracted between 2006 and 2020 from published financial statements of the sampled companies and environmental disclosure checklist in line with Global Reporting Initiatives. Multiple regression was used in analyzing the data. The study revealed that environmental sustainability reporting of oil and gas companies quoted in Nigeria was significantly affected by corporate governance, (AdjR 2 = 0.157; Wald-test= 21.18; P-value = 0.000). Also, firm size and firm leverage significantly controlled the effect of corporate governance on environmental policy, (AdjR 2 = 0.180; Wald test= 32053; P-value = 0.000). It was concluded that, there is significant positive effect of corporate governance on environmental policy index of sustainability reporting in oil and gas companies quoted in Nigeria and also, corporate governance with moderating effect of firm size and firm leverage had positive significant effect on the environmental policy index of sustainability reporting in oil and gas companies quoted in Nigeria. The study recommended that Shareholders should obtain adequate information on environmental protection before taking investment decisions, planning and portfolio diversifications in the oil and gas companies in Nigeria.

Enterprise risk management and sustainability of banks performance

PurposeThis study investigates firm attributes (namely level of capitalisation, scope of operation, organisational structure, organisational lifecycle, systemic importance and size) affecting the robustness of enterprise risk management (ERM) practice, the extent to which ERM affects the performance of banks and the impact of ERM on the long-term sustainability of banks in Nigeria. This was against the backdrop that the 2012 banking reform was a major regulatory intervention that mainstreamed ERM in the Nigerian banking sector.Design/methodology/approachThe study employed a mixed methodology of content, trend and quantitative analyses. Ex post facto research design was deployed to analyse performance differential of banks, with respect to the implementation of ERM, over a 10-year period (2008–2017). A disclosure checklist developed from the COSO ERM integrated framework was used to assess the robustness of ERM by content-analysing divulgence on risk management in published annual reports. The banking reform periods were dichotomised into pre- (2008–2012) and post- (2013–2017) reform periods. Jonckheere–Terpstra test, independent sample t-test and Mann–Whitney test were applied to analyse a total of 1,036 firm-year observations over the period 2008–2017.FindingsResult shows that bank attributes significantly affecting the robustness of risk management practice are level of capitalisation, scope of operation, systemic importance and size. Performance of banks improved slightly during the post-2012 banking reform period. This suggests that as banks consolidate on the gains of ERM, benefits of the regulatory policy on risk management may be realised in the long run. Result also shows that ERM enhances long-term performance, connoting that effective risk management could serve as a competitive strategy for surviving turbulence that typically characterises the banking sector.Practical implicationsThe emergence of level of capitalisation, scope of operation, systemic importance and size as determinants of ERM provides empirical evidence to support the practice of reviewing the capital requirements for banking business from time to time by regulatory authorities (i.e. recapitalisation policy) as a strategy for managing systemic risk. Top management of banks may consider instituting mechanisms that will ensure risk management is given prominence. A proactive approach must be taken to convert risks to opportunities by banks and other financial institutions, going forward, to cope with the vicissitudes of financial intermediation.Originality/valueThe originality of the study stems from the consideration that it provides some new insights into the impact of ERM on banks long-term sustainability in a developing country. The study also contributes to knowledge by exposing the factors determining the robustness of risk management practice. The study developed a checklist for assessing ERM practice from annual reports and other risk management disclosure documents. The paper also adds to the scarce literature on risk governance and risk management.

The Impact of Corporate Governance on Compliance with the Disclosures Requirements of Conversion to IFRS: Evidence from Saudi Context

Purpose – The purpose of this study is to examine the impact of corporate governance attributes of the board of directors and audit committee on compliance with the disclosure requirements about the conversion to IFRS imposed by Capital Market Authority in Saudi Arabia. Design/methodology/approach – The sample consists of 236 firm-year observations of Saudi non-financial listed companies during the period of 2015 and 2016. Using content analysis, the disclosure score is measured by a self-constructed disclosure checklist and employs Ordinary Least Square techniques to estimate the impact of corporate governance attributes on compliance with the disclosure requirements of conversion to IFRS. Findings – The results indicate that the overall disclosure compliance is 72%. Further, the number of board of directors and audit committee meetings, and international investors are positively associated with the level of compliance with disclosure requirements regarding the conversion to IFRS, while the proportion of board of directors independence and the industry type are negatively associated with the level of compliance with disclosure requirements regarding the conversion to IFRS. Research limitations/implications – The study covers only non-financial listed companies in the period from 2015 to 2016 in the Saudi stock market. Further, this study focuses on only one disclosure mean, which is companies annual reports, without any consideration of other different means. Finally, the results of this study are subject to the limitations known about the content analysis approach, especially coding the items in the checklist. Practical implications – The results should help the regulators, enforcement bodies, and investors in Saudi Arabia to the need for further improvement in the disclosure practices and enhance the effectiveness of corporate governance. Originality/value – This study contributes by provides additional evidence about the impact of corporate governance attributes on mandatory disclosures, as the literature available on this topic is limited, especially pertaining to developing countries. Keywords: IFRS, Disclosure, Corporate Governance, Board of directors, Audit committee. DOI: 10.7176/RJFA/12-18-06 Publication date: September 30 th 2021