Purpose The purpose of this paper is to examine the association between the level of risk disclosure (RD) and ESG disclosure of non-financial firms listed in Abu Dhabi Stock Exchange (ADX) and Dubai Financial Market (DFM), using Refinitiv Financial Solutions Database that concurs with increased legislation and increased public awareness of ESG issues. Design/methodology/approach For this research, data were collected from 44 non-financial listed firms using content analysis to estimate the level of RD. ESG data were extracted from the Refinitiv Financial Solutions Database. This study observed these firms over the period from 2018 to 2023. An ordered logit model was employed to estimate the model. Findings The research findings show: First, RD increased considerably from 2018 to 2021 as a result of the socio-economic circumstances caused by the COVID-19 pandemic. However, it decreased in 2022 and 2023. Second, the highest average ESG performance rating is observed in the logistics sector, while the lowest ESG performance ratings are observed in the transportation and construction sectors; the average industry ESG rating scale is “C”. Third, firms with higher ESG rating scales report more risk-related information in their annual reports. Fourth, financially performant firms and younger firms demonstrate better corporate governance ratings. Practical implications The findings have important policy implications, particularly for UAE regulators to strengthen ESG disclosure regulations and develop mandatory sustainability reporting frameworks aligned with international standards to enhance corporate transparency and accountability. Originality/value This paper offers significant practical and theoretical contributions. Practically, it provides UAE policymakers and regulators with evidence-based insights into current risk and ESG disclosure practices, enabling them to develop targeted frameworks that enhance corporate transparency and align with international standards. The findings also guide practitioners in improving their disclosure strategies to meet stakeholder and regulatory expectations. Theoretically, this is the first study to examine the association between RD and ESG disclosure using an ESG rating scale in the UAE market. It advances legitimacy and stakeholder theories by demonstrating how firms use integrated disclosure to manage stakeholder pressures in emerging markets. The research provides a foundation for future scholars investigating sustainability reporting in developing economies, particularly in the understudied GCC region.

Purpose This study examines the influence of institutional pressures on the extent of corporate risk reporting by Saudi-listed companies, drawing on Oliver’s (1991) framework of strategic responses to institutional processes and the institutional logics perspective. The research investigates ten hypotheses that reflect the causes, constituents, content, control, and context of institutional pressures. Design/methodology/approach A disclosure index was developed based on IFRS 7 to measure the extent of risk information disclosed in annual reports. Using a sample of 104 companies for the year 2019 and employing multiple regression analysis, the hypotheses are tested to identify institutional determinants that influence risk reporting practices. Findings Firm size, auditor type, enforcement actions by the Capital Market Authority, and director shareholdings significantly influence risk disclosure levels. By contrast, profitability, family representation, gearing, presence of chartered accountants, market uncertainty, and foreign sales do not show statistically significant relationships. The findings offer mixed support for Oliver’s theoretical predictions, revealing that firms are more likely to acquiesce when institutional pressures align with their goals or are coercively imposed. The results highlight that corporate, market, state, and professional logics shape disclosure practices, whilst also underscoring the contextual complexity of institutional influences in emerging markets. Originality/value The study contributes to the literature by extending institutional theory to risk reporting practices in Saudi Arabia and providing insights into how legitimacy, coercion, and professional norms interact with firm characteristics. The findings also inform policy by emphasising the importance of regulatory enforcement and auditor quality in enhancing disclosure practices in transitional economies.

Abstract Corporate risk disclosure is essential for enhancing transparency and informing stakeholders about potential uncertainties, especially during economic crises. This study investigates how crises, particularly the Covid-19 pandemic, influence the risk disclosure levels of Indian firms. Using a sample of Nifty 50 over six years (2017–2023) the study finds that firms increase risk disclosures during crises, supporting the argument that economic uncertainty compels organisations to enhance transparency. These findings contribute to the literature on corporate transparency during economic uncertainty and offer insights for policymakers, investors, and corporate managers. The study emphasises the need for firms to adopt proactive risk communication strategies to maintain stakeholder confidence during crises.

This study aims to determine financial risk disclosure, liquidity risk disclosure, credit risk disclosure, interest rate risk disclosure, exchange rate risk disclosure, capital structure risk disclosure, and general risk disclosure. This research is qualitative descriptive research that describes financial risk disclosure in detail. The object of this research is the infrastructure sector State-Owned Enterprises listed on the Indonesia Stock Exchange from 2021 to 2023, totaling six companies. The data analysis method is done by content analysis. The results show that the overall level of financial risk disclosure increases from 2021 to 2022 but remains the same in 2023. The same level of risk disclosure for three years occurs in the disclosure of liquidity risk, interest rate risk, exchange rate risk, and general risk. Credit risk disclosure increases from 2021 to 2023, while capital structure risk disclosure decreases in 2023.

This study explores the influence of risk disclosure levels and types on the readability of annual reports of non-financial firms in the UK during the COVID-19 outbreak. It further investigates how the disclosure of COVID-19-related information moderates the relationship between risk disclosure and readability. The study uses a content analysis approach and CFIE software to measure the level of risk disclosure and readability in the annual reports of non-financial firms listed on the FTSE all-share from 2019 to 2021. The results show a positive and significant effect of risk disclosure level on readability, which is stronger for firms that disclosed COVID-19 information. Different types of risk disclosure have varying effects on readability, with COVID-19 risk, credit risk, and strategic risk positively affecting readability, while operational risk negatively affects it. The study contributes to the literature on information asymmetry and institutional theory by demonstrating how risk disclosure and readability are influenced by external factors like the COVID-19 outbreak and internal factors such as firm characteristics and types of risks. It introduces a new risk definition and category specific to the COVID-19 pandemic and develops new measurements for risk disclosure, including credit, liquidity, market, operational, business, strategic, and COVID-19 risks. The study provides valuable insights for managers, investors, regulators, and standard setters on the relationship between risk disclosure and readability in annual reports. It highlights the importance of disclosing COVID-19-related information to enhance the readability and understandability of financial communication. The paper contributes to the literature and practice on risk disclosure, readability, and financial communication during crises.

PurposeThis study aims to investigate the relationship between corporate governance characteristics and risk disclosure inShariah-compliant financial firms operating in Kuwait. It aims to provide insights into the factors influencing risk disclosure practices within these institutions.Design/methodology/approachThe research used manual content analysis to quantify risk disclosure levels in the annual reports of 47Shariah-compliant financial companies listed in Kuwait in 2020. Subsequently, multiple regression analysis was conducted to assess the impact of various corporate governance factors on the extent of risk disclosure.FindingsThe study reveals that while KuwaitiShariah-compliant firms exhibit limited risk disclosure in their annual reports, larger boards and committees, along with a higher number of independent directors, positively influence the level of risk disclosure. Interestingly, the size of the Shariah supervisory boards did not show a significant impact on risk disclosure practices.Practical implicationsThese findings hold regulatory implications for Kuwait, highlighting the need to ensure information adequacy and promote market efficiency. Additionally, they offer practical insights for managers and investors seeking to optimize fund sourcing and diversify investment portfolios within the context ofShariah-compliant financial institutions.Originality/valueThis study contributes to the existing literature by providing empirical evidence on the relationship between corporate governance characteristics and risk disclosure in the specific context ofShariah-compliant financial firms operating in Kuwait. Furthermore, it identifies avenues for future research to delve into the influence of additional governance factors on risk disclosure practices within this unique financial landscape.

Where Egypt stand with climate related-risk disclosures and why stakeholders and organizations require such information? This research aims to measure the climate risk disclosure level in Egyptian companies and to investigate its determinants. As unfavorable climatic circumstances create systemic risk for businesses throughout the whole global economy, this research examine how the disclosure of climate change risks affects the financial performance, financial reporting, and risk management. Few studies analyze how climate-related risk affects the financial performance of publicly traded companies in Egypt. This research applies regression models using both quantitative and qualitative methodologies. The information was gleaned from the 2019 through 2022 financial statements of 25 publicly traded companies. According to statistical analysis, there is a significant positive association between the financial performance, financial reporting, and risk management of industrial organizations and the disclosure of climate change. The findings show that the financial markets require precise, thorough, and high-quality information about the effects of climate change. This encompasses the threats and chances posed by increasing temperatures, climate-related legislation, and new technology in our rapidly evolving global environment.

PurposeThe aim of this study is to measure the risk disclosure level and to determine the relationship between ownership structure dimensions (institutional ownership, foreign ownership and family ownership) and corporate risk disclosure in Jordan.Design/methodology/approachThis study used a sample of 94 Jordanian listed firms from the Amman Stock Exchange for the period from 2014 to 2017. This study measured risk disclosure using the number of risk-related sentences in the annual report, while random effects regression was used for hypotheses testing.FindingsThe results revealed that family ownership has a negative effect on risk disclosure practices, but institutional ownership, foreign ownership, firm size and leverage have no significant effect on the risk disclosure level.Practical implicationsThe finding of this study is more likely be useful for many concerned parties, researchers, authorities, investors and financial analysts alike in understanding the current practices of the risk disclosure in Jordan, thus helping them in reconsidering and reviewing the accounting standards and improving the credibility and transparency of the financial reports in the Jordanian capital market.Originality/valueThis study offers novel evidence detailing the impact of ownership structure toward corporate risk disclosure, its implementation in emerging markets following the minimal amount of scholarly efforts on the topic. To the best of the authors’ knowledge, this is the first examination of the impact of ownership structure on corporate risk disclosure. Thus, this study has important implications for the decisions of executives, policymakers, shareholders and lenders, as it enables them to better understand the linkage between ownership structure on corporate risk disclosure.

The government’s intervention under the approval system seriously affects the healthy and sustainable development of the financial market. An IPO is an important way for a venture capitalist (VC) to gain income, which impacts the efficiency of resource allocation in the capital market. From the perspective of resource allocation efficiency, this paper compares the influence of venture capital on the IPO process of startup enterprises under registration and approval systems. The findings are as follows: (1) after the trial registration system, the speed of passing and listing of VC-owned startup enterprises can be significantly accelerated. (2) Venture capitalists can accelerate the startup enterprises’ speed of passing by sending directors to startup enterprises and improving the level of risk disclosure, which is only significant under the registration and issuance system. (3) Further research shows that VC-supported startups perform better after listing. (4) VCs can help startup enterprises to choose hot season listing, which has a good timing effect. The conclusion of this text study is still robust after using propensity score matching (PSM) and Heckman to eliminate endogeneity. The conclusion of this study provides a theoretical basis and empirical support for emerging market countries to promote market-oriented reform.

Risk disclosure in sustainability reports: Empirical evidence from the energy sector

This study aims at identifying the determinants of corporate governance that impact corporate risk disclosure in India’s top non-financial listed companies based on market capitalisation. The analysis of the study is based on risk disclosure practices of the leading non-financial listed companies using annual reports as well as risk disclosure practices in the presence of various regulations. The risk exposure is measured using manual content analysis while the impact is analysed using multiple regression. The empirical findings reveal that the corporate risk disclosure level has improved significantly. The major corporate governance variables namely board size and ownership are insignificant to risk disclosure whereas audit committee meetings and role duality are somewhat significant. Firms having bigger size plays a major role in risk disclosure practices of companies, on the other hand, liquidity and growth of the firm do not influence risk disclosure practice. Due to the constant fallouts of companies, this paper tries to analyse the role of corporate governance practices in minimising companies’ risk exposure. The results of the study help analyse the failures in corporate governance practices that lead to companies’ poor disclosure policies.

This study examines how board characteristics (gender, education, and age) and board size can impact corporate risk disclosure (CRD) in quantity and coverage. This research differs from previous studies because we use the newest COSO framework (2017) to measure CRD. We analyzed the data using multiple regression analysis. The results show no relationship between the composition of female directors in both CRD coverage and quantity. Board size positively affects CRD coverage and quantity, while board age negatively affects those two types of CRD. However, board education does not influence CRD quantity and coverage. This study also indicates that board size and age substantially impact the level of risk disclosure. For investors, the board's age and size become an essential consideration in investment decisions related to risk information. While policymakers in Indonesia urgently need a further discussion of the implementation of guidelines to promote higher levels of risk disclosure among firms since the difference in the basis for disclosing risk will reduce the company's competitiveness in the same industry.

Stock price informativeness of risk disclosure: Does time orientation matter?

PurposeThis study aims to examine the effect of risk disclosure (RD) on commercial banks’ credit rating (CR) in the context of Bangladesh. It also explores the factors influencing RD in both Islamic and conventional banks.Design/methodology/approachThe sample includes 200 bank-year observations consisting of 20 commercial banks (15 conventional and 5 Islamic banks) from 2010 to 2019. The sample is further segregated into Islamic and conventional banks. Ordered logit and random effect ordinary least square models are used to analyze the data. Furthermore, the two-stage least squares approach is used to perform a robustness test.FindingsThis study shows that RD significantly positively impacts CR, with a stronger effect in Islamic banks than in conventional banks. This study also finds that banks’ age and leverage negatively influence CRs. Moreover, banks’ size and total capital have a positive and negative influence on CRs, respectively. This study also shows that the age of Islamic and conventional banks positively and negatively influences the RD scores, respectively. In contrast, the RD score of conventional banks is positively impacted by bank size.Practical implicationsBy examining which variables substantially impact RD and, hence, CR scores, bank stakeholders may make better financing, investment and other policy decisions. Investors may choose stocks with a high level of RD in the annual reports as the earlier studies imply that higher RD enhances CR.Originality/valueOnly a few studies have examined the relationship between RD and CRs, while, to the best of the authors’ knowledge, this study is the maiden attempt in the Bangladesh context. This study also compares the link between Islamic and conventional banks.

ABSTRACT This paper investigates non-financial reporting in non-profit organisations. Specifically, it examines the extent to which UK higher education institutions (HEIs) make voluntary disclosures relating to risk management practices, and investigates whether composite governance quality index and senior management team characteristics can influence such risk disclosures. Using a sample of UK HEIs over a number of years and drawing insights from neo-institutional theory, our findings are three-fold. First, our baseline findings contribute to the literature by showing that the level of risk disclosure among HEIs in the UK is relatively low, especially when compared to the findings of prior studies that have been conducted on similar-sized publicly traded corporations. Second, we contribute to the literature by providing timely evidence on the impact of governance quality on risk disclosure. In particular, our evidence contributes to the existing literature by demonstrating that better-governed HEIs tend to engage in higher risk disclosures than their poorly-governed counterparts. Finally, our study contributes to the extant literature by providing new evidence that offers support for the “shared” governance model among UK HEIs. Specifically, our findings show that the positive governance quality–risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team. Our findings are robust to controlling for endogeneities and alternative estimation techniques, with major implications for non-financial reporting. HIGHLIGHTS This paper examines non-financial reporting (NFR) in non-profit organisations, with specific focus on risk disclosures by UK higher education institutions (HEIs) We examine the effect of UK HEIs' governance quality on the level of risk disclosures; We investigate whether management team characteristics moderate the governance quality-risk disclosures nexus in UK HEIs We find that better-governed UK HEIs tend to engage in higher levels of risk disclosures We show further that the positive governance quality-risk disclosure relationship is moderated/explained largely by the characteristics of the senior management team

Банки обязаны раскрывать информацию, связанную с рисками, в рамках двух систем: (1) бухгалтерская/финансовая отчетность и отчетность о рыночной дисциплине, что является одним из важнейших вопросов в современном управлении банком. Раскрытие информации о рыночной дисциплине введено на международном уровне в Базель II и Циркуляр 41 Государственного банка Вьетнама. В этом документе рассматривается текущее раскрытие информации о рисках банками, зарегистрированными на Вьетнамской фондовой бирже, непосредственно в рамках систем, применяющих индекс раскрытия информации и текстовую проверку для финансовых отчетов и отчетов Циркуляра 41 о 15 банках, зарегистрированных на Вьетнамской фондовой бирже. Результаты показывают, что раскрытие информации о рисках инвесторам для укрепления рыночной дисциплины осуществляется медленнее и менее значимо, чем регулирование раскрытия финансовой информации. Среди различных категорий раскрытия рисков инвесторы больше заинтересованы в информации, связанной с кредитным риском и рыночным риском банков. Кроме того, банки, которые имеют больший размер и более низкий леверидж, имеют более высокий уровень раскрытия рисков, что положительно влияет на стоимость акций. Результат поддерживает полномочия при рассмотрении механизма надзора за раскрытием информации о рисках коммерческих банков. Banks are stipulated to disclose risk-related information under two systems: (1) accounting based/ financial reporting and market discipline reporting which is one of the critical issues in modern bank management. Market discipline disclosure is introduced internationally in Basel II and Circular 41 of Vietnam State Bank. This paper studies current risk information disclosure of Vietnam listed banks right under the systems applying disclosure index scoring and textual reviewing for financial reports ane Circular 41’s reports of 15 listed banks in Vietnam Stock Exchange. The results show that disclosure of risk information to investors to strengthen market discipline is carried out more slowly and less significantly than the regulation on financial disclosure. Among different categories of risk disclosure, investors pay more interested to information related to credit risk and market risk of the banks. In addition, the banks which have a larger size and lower leverage have higher risk disclosure level and impacts positively on the stock value. The result supports the authority in considering a supervision mechanism for risk disclosure of the commercial banks.

Manuscript Type: Research paper Research aims: The purpose of this paper is to investigate and examine the determinants of risk disclosure practices under Basel 3, Pillar 3 (revised 2016 version) requirements of the top 50 listed banks in the Gulf Countries region (GCC). The study covers the period 2016-2019. Design/Methodology/Approach: The present study is based on a content analysis approach to allow the measurement of risk disclosures. Six risk disclosure categories were identified as the major sections regarding this particular type of reporting. The analysis covers both quantitative and qualitative data that had been hand collected from the annuals reports and Pillar 3 risk disclosures reports. From a regulatory perspective, the study refers to the most relevant international accounting standards, namely, Basel III Agreement Pillar 3 (2016 revised version), and IFRS 7. Research findings: It is expected that the GCC major banks, even though they must comply with the same risk disclosure regulation, will demonstrate specific disparities in their risk reporting. The results of the study suggest that Basel III risk reporting is significantly determined by size, leverage, cross listing, and government ownership. Theoretical contributions/Originality: The present study contributes to the literature by documenting the level of compliance of the top GCC banks with the recent BCBS risk disclosure requirements, and by providing empirical evidence regarding the quality of the released risk disclosures and its potential determinants. Another major contribution of the paper is the development of a self-constructed disclosure index that reflects the most recent Basel III disclosure regulations (Pillar 3, 2016 version). Practical implications: The findings of this study could be appreciated from different angles. From a regulatory perspective, this study might be insightful to GCC baking regulators in term of developing appropriate policies that will bring the banks to responsibly and professionally adopt an acceptable level of risk disclosure. At the global level, the findings could be insightful to the IASB concerning the degree of compliance of the banks in the region with IFRSs related to risk reporting. Thus, it can help the IASB consider institutional differences among countries when revising its pronouncements. Research limitations/Implications: The findings of the present study would be understood in light of some limitations. First, in the present study, we considered only the top 50 GCC listed banks, which could impede the generalisation of the results from the content analysis and the regression on the rest of the banks in the region. Second, we were interested in this research about the implementation of the new 2016 market discipline Pillar 3 disclosures requirement. Expanding the time frame of the study could reveal additional insights into risk disclosure practices. Keywords: Corporate Risk Disclosures Basel Committee on Banking Supervision (BCBS), Basel III, Pillar 3, Market Discipline, IFRS 7, Gulf Cooperation Council (GCC) JEL Classification: G21,G28,G32,G34,G38

ABSTRACT Using textual analysis and the data of China’s A-share listed companies from 2010 to 2020, this study examines how risk disclosure in annual reports influences subsequent mergers and acquisitions (M&A). The empirical results show that the risk disclosure tone of annual reports is positively associated with the probability of engaging in M&A deals and bid premium, but is negatively associated with long-term stock returns. Furthermore, the level of risk disclosure in annual reports exerts a negative impact on the probability of all-cash bids and bid premium, but positively associated with the long-term M&A performance, indicating that risk disclosure helps alleviate the information asymmetry between acquirers and targets. The empirical evidence highlights the value relevance of risk disclosure content in annual reports, and the importance in strengthening the supervision of qualitative information disclosure.

PurposeThis study aims to examine the impact of corporate governance attributes, in the form of board characteristics, on risk disclosures provided through integrated reporting (IR).Design/methodology/approachDrawing upon an agency theory perspective, this study examines the effect of the main corporate governance board characteristics (size, gender diversity, independence and meeting frequency) on the level of risk disclosure provided by a sample of 95 IR adopters from 24 countries for 2018.FindingsThe results suggest that firms are slow to realise IR’s potential to produce innovations in risk disclosure mechanisms. In addition, certain board characteristics, such as gender diversity, independence of directors and meeting frequency, are positive drivers of the risk disclosure provided via IR.Originality/valueTo the best of the authors’ knowledge, this is the first study that investigates the impact of corporate governance mechanisms on risk disclosure provided via IR. Connecting corporate governance mechanisms to IR risk disclosure practices can contribute to enhancing the practical and theoretical understanding of the role that the board of directors may play in stimulating transparency and accountability about risks via an alternative communication tool, IR, to the benefit of both investors and other stakeholders.

The purpose of this study is to obtain empirical evidence regarding the influence of firm size, leverage, board independence, and liquidity in manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2019. This study used 87 samples and 261 manufacturing company data which were selected based on purposive sampling method. The research data was inputted with Microsoft Excel and processed through the Eviews 11.0 software. The results of this study indicate that firm size has a significant effect on Risk Disclosure, while leverage, board independence, and liquidity have no significant effect on Risk Disclosure. The implication of this research is the need for an increase in firm size, leverage, board independence, and liquidity to increase company activities in the level of risk disclosure.