Risk Disclosure Practices Research Articles

The role of audit committee characteristics in improving the risk disclosure of companies examining the moderating role of audit quality

This paper examines the association between audit committee characteristics (ACC) and risk disclosure (RD) of firms, focusing on the moderating effect of audit quality (AQ). The importance of RD to investors and stakeholders is that such a practice offers a better evaluation of the overall risk profile of companies. Based on agency theory complemented by the resource dependence theory, this paper therefore suggests that effective audit committees have an effect of reducing information asymmetry while increasing audit quality monitoring capacities and consequently enhance risk disclosure practices. In this respect, the literature sources were reviewed, and a hypothetical framework was developed to test the hypotheses. The sample selection comprises 54 companies with non-financial companies listed in the Egyptian Exchange Market, EGX100, for the period 2018 to 2021, which amounts to 216 observations. According to the results, ACC, such as size and financial expertise, are significant for RD, while ACC relating to meetings and independence are less important for RD. The study further established that AQ moderates the relationship between ACC and RD, implying that the significant influence of ACC is stronger when AQ is high. These inferences are of essence to policy makers and companies in understanding the implication of ACC on RD and the relation to high-quality audits in improving the effectiveness of audit committees. It underlines the importance of audit committees in giving assurance about transparency and accountability in financial reporting.

Corporate Risk Disclosure Practice and Financial Performance of Listed Industrial Goods Firms in Nigeria

In recent years, corporate risk disclosure has gained increasing attention in corporate governance discourse due to its potential impact on financial performance. The need for transparency in reporting risks has become more critical, particularly in the industrial goods sector, which is often characterized by high operational and financial risks. This study examined the influence of corporate risk disclosure on the financial performance of listed industrial goods firms in Nigeria, a sector known for high levels of operational and financial risk. It specifically assessed how financial and operational risk disclosures affect financial performance. This study employed expo-facto research design. The study population consisted of 13 industrial goods firms listed on the Nigerian Exchange Group (NGX) as of 31st December 2023. Census sampling was applied to include the entire population. Data were collected from annual reports and corporate governance disclosures were analysed with descriptive statistics and feasible generalised least squares regression analysis. The findings found that while financial risk disclosure positively and significantly influences financial performance, operational risk disclosure has a negative but significant effect. These outcomes suggest that financial transparency boosts investor trust and confidence, enhancing financial performance, whereas disclosing operational risks may reduce investor confidence due to concerns about operational stability and profitability. This study concluded that corporate risk disclosure demonstrated a significant role in influencing financial outcomes, yet its effect varies based on the type of risk disclosed. In line with empirical findings of this study, it was recommended that firms should balance transparency with discretion by selectively disclosing operational risks that have been mitigated or managed, reducing the potential for investor concerns over operational vulnerabilities.

INFORMATION ASSET PROTECTION IN ACCOUNTING: ANALYZING CORPORATE GOVERNANCE AND RISK MANAGEMENT THROUGH A BIBLIOMETRIC LENS

This paper deals with the protection of information assets related to accounting, based on bibliometric analysis involving 333 articles from the Web of Science. The five clusters that had been targeted by this research included: Corporate Governance and Board Characteristics (Cluster 1); Financial and Performance Metrics (Cluster 2); Accounting Standards and Reporting (Cluster 3); Risk Management and Disclosure (Cluster 4); Information Quality and Investor Protection (Cluster 5). It aims to define the current boundaries of the literature, identify main tendencies, and give a view on the future course of research. Bibliometric and content analysis methods were applied in the study to certain articles, and the relevance and impact were identified by the data obtained in the period between the years 2007–2024. Consequently, this chapter presents a broad-based analysis of how corporate governance ensures and drives information protection, the presentation of financial metrics internally within the organization, the importance of accounting standards, and the effectiveness of risk management and disclosure practices. The findings shall add to the better understanding of researchers, practitioners, and policy-makers in developing the protection of information assets in the accounting area.

Corporate governance impact on risk disclosure in Shariah-compliant financial firms of Kuwait

Purpose This study aims to investigate the relationship between corporate governance characteristics and risk disclosure in Shariah-compliant financial firms operating in Kuwait. It aims to provide insights into the factors influencing risk disclosure practices within these institutions. Design/methodology/approach The research used manual content analysis to quantify risk disclosure levels in the annual reports of 47 Shariah-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. Findings The study reveals that while Kuwaiti Shariah-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 implications These 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 of Shariah-compliant financial institutions. Originality/value This study contributes to the existing literature by providing empirical evidence on the relationship between corporate governance characteristics and risk disclosure in the specific context of Shariah-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.

Do risk disclosures enhance the efficacy of regulatory and supervisory frameworks in restricting banks’ risk-taking?

This study examines the impact of stringent regulatory and supervisory frameworks, as well as enhanced risk disclosure practices, on banks’ risk-taking behavior. We analyze a sample of banks from twelve European countries (Austria, Belgium, Denmark, France, Germany, Ireland, Italy, Netherlands, Poland, Spain, Sweden, and the United Kingdom) over the period from 2000 to 2020. Our findings demonstrate a significant decrease in banks’ inclination to engage in risky behavior when they are subjected to strict regulatory and supervisory frameworks, alongside increased disclosure of risk management practices. Moreover, the implementation of comprehensive risk disclosures, as a supplementary tool for banking regulation and supervision, effectively reduces banks’ tendency to engage in risky activities. The results of our study remain robust across various checks conducted for each hypothesis.

Ownership Structure and Corporate Risk Disclosure in Emerging Countries

The study examines the impact of ownership structure on corporate risk disclosure in African emerging countries. The sample includes 42 firms that are listed on the Johannesburg Stock Exchange and the Nigerian Stock Exchange. The data for the independent variables were taken from the Bloomberg data stream, whereas the data for the dependent variable were taken from annual reports retrieved from the website of the sample companies. The study’s time period runs from 2014 to 2018. Regression and content analysis were employed as the analytical tools. We perform text analysis on company annual reports to ascertain the risks that companies disclose, and regression analysis was used to establish the extent to which ownership structure influenced corporate risk disclosure. The result shows that strategic and environmental risk disclosures are dominated by operational risk disclosure. It has become a convention for the firms to divulge considerable positive, past, non-monetary information rather than negative, future and monetary risk information. Moreover, it is discovered that the decision to improve risk disclosure is largely influenced by company size and profitability. In contrast, firms are reluctant to unveil risk information provided the shares of the company are not concentrated in the hands of few individuals. Nonetheless, company risk disclosure practice is unaffected by institutional investors, government, foreigners, insider ownership and leverage. It can be concluded that the enterprises operating in emerging African markets have made improvements totheir risk disclosure practices. However, there is still room for further improvement. Monetary, future, and negative risk information are the most important risk disclosures that various stakeholder groups, such as investors, demand to see. Hence, there is a need for regulation that can compel corporations to publish the most pertinent risk information. Even though risk disclosure is voluntary in these two African emerging countries, ownership structure is one of significant predictors of corporate risk disclosure.

Still No(,) More Bolam Please: McCulloch and others v Forth Valley Health Board

McCulloch v Forth Valley Health Board concerned an allegation of negligence, in failing to consider treating pericarditis with non‐steroidal anti‐inflammatory drugs as a reasonable alternative treatment and not discussing this option with the patient. Montgomery v Lanarkshire Health Board held that a medical professional must disclose to a patient material risks and any reasonable alternative treatments. The materiality of a risk is to be decided by reference to a reasonable person in the patient's position, or where the medical professional should be reasonably aware that the particular patient is likely to attach significance to that risk. However, Montgomery did not define the legal standard relating to the assessment of whether an alternative treatment is reasonable. McCulloch held the correct legal test to be applied as to whether an alternative treatment is reasonable is the professional‐practice test in Bolam v Friern Hospital Management Committee. There are practical, doctrinal and normative reasons to question whether Bolam is the correct legal test in respect of the assessment of reasonable alternative treatments. Additionally, the conceptualisation of Bolam in McCulloch is overly deferential. McCulloch fails to fully consider Montgomery’s emphasis that autonomy‐respecting principles are the values that risk disclosure practices are sensitive to.

DETERMINANTS OF RISK DISCLOSURE IN TOP-PERFORMING AUTOMOBILE COMPANIES IN INDIA

Considering the business environment, operations, and regulatory environment companies operate in, disclosure requirements per the regulatory authorities have been more stringent. This study examined the degree of disclosure of risk information disclosed by companies established in India in the automobile sector listed on the National Stock Exchange (NSE) and listed international companies with unlisted subsidiaries in India. This study also aims to identify the governance attributes that influenced the practice of risk disclosure among the selected companies in India. The main risks in top-performing automobile companies in India have disclosed are examined in this paper, along with the board characteristics associated with the disclosure of corporate risk information. The variables included in the study are board size, board independence, and ownership concentration. The content analysis approach was adopted to determine the degree of risk disclosure practices. This study has also applied the descriptive statistics method and fixed effect analysis to measure the degree of information disclosure and to elaborate on the interrelationship between disclosure practices in India and governance attributes. Assessing India's top-performing automobile companies eventually unraveled the risk disclosure practices. Agency and signalling theories were adopted in this study to elucidate the company disclosure practice. The study reveals that there is a significant positive association between board size and the extent of risk disclosure; a significant positive association between board independence and the extent of risk disclosure; and a significant negative association between ownership concentration and the extent of risk disclosure.

Corporate Attributes and Risk Management Disclosure of Listed Insurance Companies in Nigeria

Disclosure of risk management practices by firms enhances transparency, thus giving shareholders’ more confidence and lowering their uncertainty about future cash flows. This study therefore examined the effects of corporate attributes on risk management disclosures of listed insurance firms in Nigeria from 2013 to 2022. Firm size, firm profitability and firm leverage were the measures of corporate attributes employed in this study while risk management disclosure was the dependent variable. The research design adopted for this study was ex post facto and twenty-three listed insurance firms constituted the population of the study. Purposive sampling technique was employed to select eight listed insurance firms and secondary used were analysed using marginal logistic regression. The statistical package employed was STATA 16. From the analysis, it was found out that firm size, firm profitability and firm leverage have significant effect on risk management disclosure of listed insurance firms in Nigeria. Thus, it was concluded that some firm specific attributes can enhance risk management disclosures of listed insurance firms in Nigeria. Based on these findings, the study recommended that the management of insurance firms in Nigeria should strive to increase their level of profitability as more profitable firms have the incentives to engage in risk management and disclosure practices.

Direct letters to relatives at risk of hereditary cancer—study protocol for a multi-center randomized controlled trial of healthcare-assisted versus family-mediated risk disclosure at Swedish cancer genetics clinics (DIRECT-study)

Background The results of germline genetic testing for hereditary cancer are of importance not only to the patients under investigation but also to their genetic at-risk relatives. Standard care is to encourage the proband (first family member under investigation) to pass on this risk information to the relatives. Previous research suggests that with family-mediated disclosure, only about a third of at-risk relatives contact health care to receive genetic counselling. In some studies, complementing family-mediated risk disclosure with healthcare-assisted risk disclosure almost doubles the uptake of genetic counselling in at-risk relatives. In this study, we evaluate healthcare-assisted direct letters to relatives at risk of hereditary cancer syndromes in a randomized controlled trial.MethodsProbands are recruited from Swedish outpatient cancer genetics clinics to this two-arm randomized controlled trial. The study recruits probands with either a pathogenic variant in a cancer susceptibility gene (BRCA1, BRCA2, PALB2, MLH1, MSH2, MSH6, PMS2) or probands with familial breast and colorectal cancer based on clinical and pedigree criteria. In both arms, probands receive standard care, i.e., are encouraged and supported to pass on information to relatives. In the intervention arm, the proband is also offered to have direct letters sent to the at-risk relatives. The primary outcome measure is the proportion of at-risk relatives contacting a Swedish cancer genetics clinic within 12 months of the proband receiving the test results.DiscussionThis paper describes the protocol of a randomized controlled clinical trial evaluating a healthcare-assisted approach to risk disclosure by offering the probands to send direct letters to their at-risk relatives. The results of this study should be informative in the future development of risk disclosure practices in cancer genetics clinics.Trial registrationClinicalTrials.gov. Identifier NCT04197856 (pre-trial registration on December 13, 2019).Also registered at the website “RCC Cancerstudier i Sverige” as study #86719.

The impact of differential risk disclosures: Evidence from cross-listed firms in China and Hong Kong

We hand-collect and process mandatory risk disclosures from the annual reports of firms that are cross-listed in both the Chinese and Hong Kong stock markets from 2009 to 2015. We examine differential risk disclosure practices and find that the Hong Kong-based annual reports include risk disclosures that are significantly more negative than the Chinese-based annual reports for the same cross-listed firms. During this period, the Chinese regulatory authorities mandated an increase in the risk disclosures of these cross-listed firms. We then compare the impact of this 2012 regulatory change on Hong Kong investors with that of Chinese investors for the same cross-listed firms. Our results show that Hong Kong investors are more likely to improve their risk perceptions following the enhanced mandatory disclosures than their Chinese counterparts. Overall, our findings suggest that changes in mandatory risk disclosures will have significantly different effects on distinct investor groups.

Does Corporate Governance Impact Risk Disclosure? An Empirical Analysis in the Indian Context

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.

Risk committee characteristics and risk disclosure in banks: evidence from an emerging economy

PurposeThis study aims to investigate the impact of risk committee characteristics on the risk disclosure of banking institutions in an emerging economy, Pakistan.Design/methodology/approachThe data are collected through a manual content analysis of 21 banks regulated by the State Bank of Pakistan over the period 2011–2020. The study utilizes the generalized least square (GLS) regression model as the method of analysis.FindingsThe study finds that risk committee size is positively associated with risk disclosure, which is in line with agency theory. However, risk committee independence and risk committee gender diversity are negatively associated with risk disclosure. This contradicts the theoretical perspective and is explained by the weak regulatory framework of Pakistan.Research limitations/implicationsThis study was carried out in a single research setting, which limits the generalizability of its findings to other developed and emerging economies.Practical implicationsThe results provide valuable insights for regulators by identifying the attributes that require regulatory focus to strengthen risk committees and enhance risk disclosure practices within the banking sector of Pakistan. The findings highlight the effectiveness of the risk committee size, call for fully independent risk committees and encourage greater representation of women in these committees.Originality/valueThis study contributes to the corporate governance literature by empirically examining the risk committee characteristics and their impact on the risk disclosure of banks in an emerging economy. Moreover, this study contributes to theory by utilizing upper echelon theory in addition to agency theory as the motivation for the study.

The Relationship Between the Risk Disclosure and Risk Management Committee on Banks Value: Empirical Evidence From Jordan

Purpose: Government levels may better fulfill the expanding expectations for public service governance, performance management, and accountability with the use of risk management backed by an integrated management accounting and control system. To explain how the risk management committee and risk disclosure affect bank value, this paper draws on agency theory and signaling theory, by using the market to book ratio (MTBR) to measure bank value. Theoretical Framework: This article explains how the characteristics of risk management committees (RMCC) (size, independence, qualifications, meetings, executive membership, expertise, and dual membership) and voluntary risk disclosure influence each other on the value of Jordanian banks from 2014-2021. Design/methodology/approach: The descriptive statistics of risk disclosure practices were calculated by the study sample using data from 18 banks collected between 2014 and 2021. The study variables' observations have an unbalanced distribution as well. 120 observations across all study variables are included in this paper. To calculate the bank value in this study, we use the Market to Book Ratio (MTBR). The regression analysis employed the multiple regression model. Findings: The results indicate that risk management committee qualifications in accounting or finance significantly negatively affect bank value, while other variables have a significant impact on the value of Jordanian banks, such as risk management committee expertise, risk management committee dual membership with the compensation committee, risk management committee independence, and executive membership in the composition of the risk management committee. Originality/value: This paper provides new empirical evidence in financial and accounting literature regarding the effect of the RMCC characteristics on Jordanian banks' value. Also, The main contribution of the paper is the discovery that the influence of an RMCC tends to encourage more disclosure of risk management to minimize risks.

Fresh takes on five health data sharing domains: Quality, privacy, equity, incentives, and sustainability.

As entities around the world invest in repositories and other infrastructure to facilitate health data sharing, scalable solutions to data sharing challenges are needed. We conducted semi-structured interviews with 24 experts to explore views on potential issues and policy options related to health data sharing. In this Perspective, we describe and contextualize unconventional insights shared by our interviewees relevant to issues in five domains: data quality, privacy, equity, incentives, and sustainability. These insights question a focus on granular quality metrics for gatekeeping; challenge enthusiasm for maximalist risk disclosure practices; call attention to power dynamics that potentially compromise the patient's voice; encourage faith in the sharing proclivities of new generations of scientists; and endorse accounting for personal disposition in the selection of long-term partners. We consider the merits of each insight with the broad goal of encouraging creative thinking to address data sharing challenges.

Non-financial risk disclosure practice: Evidence from Saudi Arabian listed companies

This study employs content analysis to analyse non-financial risk disclosure (NFRD) practices within the annual reports of Saudi listed companies over eight years (2010–2017). The data gathered shows that the levels of average NFRD are moderate. The descriptive results show that the average level of NFRD in the sample is 35.33%. This number is much lower than that reported in other studies elsewhere (Elamer et al., 2020; Konishi & Ali, 2007; Ntim et al., 2013). For example, Linsley and Shrives (2006) and Rajab and Handley-Schachler (2009) find that the mean of risk disclosure is 78 and 95 sentences for UK listed firms, respectively. Konishi and Ali (2007) report that Japanese companies offer 47 risk sentences on average. Thus, NFRD in Saudi Arabia appears to be smaller compared to other studies. The low level of NFRD in Saudi Arabia could be mainly clarified by the absence of enforcement. Throughout the study, there were no compulsory requirements for Saudi listed companies to offer information regarding risk or non-financial risk in their annual reports. The rise in the categories of risk-non-financial risk disclosures is more pronounced in the process risk where process risk disclosure grew from 27 (33%) in 2010 to 41 (50%) in 2017. Product, legal, and ethical risk disclosure appeared to be the most frequently disclosed risk, while the Shariah risk is significantly lower. The lack of Shariah risk disclosure can be explained by the fact that only two sectors substantially apply Shariah contracts such as Murabaha, Ijarah, and Istisnaa into their operations. The results of this study have the potential to support those preparing financial reports in firms, as well as regulators to enhance corporate NFRD practices and help investors and other key stakeholders.

A qualitative analysis of bank credit risk disclosure: Evidence from the Canadian and Italian banking sectors

AbstractThis paper aims to analyze bank credit risk disclosure practices in two different geographical contexts characterized by a homogeneous regulatory framework (Canada and Italy), by means of a qualitative content analysis methodology. We employ an innovative approach, which allows us to investigate both the qualitative and quantitative profiles of disclosures. Unlike an entirely quantitative approach, this comprehensive methodology allows us to analyze in depth the disclosure practices of Canadian and Italian banks and detect their commonalities, differences, points of strength, and weaknesses. Our results show that although there are some variations in the disclosure practices of Canadian and Italian banks, the quality of their disclosures is not significantly different. Among the most relevant differences, it emerges that while Italian banks provide more comprehensive disclosures, Canadian banks offer a more holistic view on credit risk. We contribute to the scant literature on credit risk disclosure by identifying room for improvement for both Canadian and Italian banks.

Determinants of Basel III Risk Disclosures: The Case of Gulf Cooperation Council Public 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

Risk Disclosure, Corporate Governance and Firm Value in an Emerging Country

This study aims to examine whether risk disclosure practices and corporate governance mechanisms are associated with the performance of listed companies in Malaysia’s emerging economy. The study uses fixed effects panel data regression models to gauge the relationship using 899 firm-year observations from companies that provide risk disclosures in their annual reports. The findings show that risk disclosure has a significant effect on firm performance. Audit committee monitoring also has a significant relationship with firm performance, while the results regarding the existence of a risk management committee are insignificant. In additional analyses, a composite measure of audit committee effectiveness confirms that its monitoring role improves firm performance significantly. This study addresses risk disclosure practices in an under-researched setting (Malaysia) with different corporate governance models and emerging risk reporting legislation, thus adding to the limited body of knowledge on corporate risk disclosure and corporate monitoring and their impact on firm performance.

Corporate governance and risk disclosure: evidence from integrated reporting adopters

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.