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Journal of Empirical Studies

September 2014, Volume 1, 3, pp 105-115

The Association Between Corporate Risk Disclosure and Firm Performance in Emerging Country – The Case of Egypt

Marwa Abdel Razek

Marwa Abdel Razek 1

  1. Senior accountant – Al Mamourra for housing and development company Egypt 1

on Google Scholar
on PubMed

Abstract:

 The aim of this paper is to investigate the association between corporate risk disclosure and firm performance (ROA, ROE, and ESP), Using SPSS statistical, results show that there is  an insignificant association between liquidity risk, interest  rate risk,   credit risk, exchange rate and  firm profitability.
This study is restricted to examine one year annual report 2013, exclude financial sector due to their specific law and rules and sample size  on the other hand, this research paper is limited to investigating  the association between risk disclosure mainly financial risk, liquidity risk  and profitability.

Contribution/ Originality
This study contributes to literature in many reasons:
Firstly, in line with Mousa at al 2013,  Vandemelle 2009 documents that there is a negative relationship between  corporate risk disclosure and profitability 
Secondly, this paper is one of very few studies which investigate the determinants of corporate risk disclosure in an Arab country (Egypt)
Thirdly, this study use EPS  for measure profitability 
Finally, this study encourages accounting setters to improve risk disclosure practice which could affect decisions making  

Keywords:


Reference:

  1. Abraham, S. and P. Cox, 2007. Analysing the determinants of narrative risk information in UK FTSE 100 annual reports,. The British Accounting Review, 39(3):pp227–248.
  2. Adamu, 2013. Risk reporting : A study of risk disclosure in the a.nnual reports of listed companies in Nigeria. Research Journal of Finance and Accounting, 4(16): 140-147.
  3. Al-shammari, B., 2014. Kuwait corporate characteristics and level of risk disclosure: A content analysis. Journal of Contemporary Issues in Business Research, 3(3): 128–153.
  4. Amran, A., A.M.R. Bin and B.C.H.M. Hassan, 2009. Risk reporting: An exploratory study on risk management disclosure in Malaysian annual reports. Managerial Auditing Journal, 24(1): 39–57.
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  9. Elzahar, H. and K. Hussainey, 2012. Determinants of narrative risk disclosures in UK interim reports. The Journal of Risk Finance, 13(2): 133–147.
  10. Hussainey, K., T. El Shandidy and I. Fraser, 2013. Aggregated , voluntary and mandatory risk disclosure incentives?: Aggregated , voluntary , and mandatory risk disclosure incentives?: Evidence from UK FTSE all-share companies. International Review of Financial Analyis, 30: 320–333.
  11. Khlif, H. and k. Hussainey, 2014. The association between risk disclosure and firm characteristics?: A meta-analysis, Available from http://www.academia.edu/7251812/Risk_Disclosure_Meta_Analysis_Accepted_version.
  12. Linsley, S., 2006. Risk reporting – a study of risk disclosure in the annual reports of UK companies. The British Accounting Review, (38): 387-404
  13. Liu, 2006. A content analysis of external risk reporting in UK public telecommunication companies. MA Thesis.
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  16. Mokhtar, E.S. and H. Mellett, 2013. Competition, corporate governance, ownership structure and risk reporting. Managerial Auditing Journal, 28(9): 838–865.
  17. Mousa, G.A. and E.A.H. Elamir, 2013. Content analysis of corporate risk disclosures: The Case of Bahraini Capital Market Mousa & Elamir, 4(1): 27–54.
  18. Ntim, G., L. Sarah and A. Thomas, 2013. Corporate governance and risk reporting in South Africa: A study of corporate risk disclosure in the pre and post 2007-2008. Global financial crisis periods. International Review of Financial Analysis, (30): 363-383.
  19. Oluwagbmiga, 2014. Risk disclosure in the published financial statements  and firm performance – evidence from the Niegeria listed companies. Journal of Economics and Suitable Development, 5(8): 86-95.
  20. Solomon, Y., A. Solomon, S. and N. Joseph, 2000. A conceptual framework for corporate risk disclosure emerging from agenda for corporate governance reform. The British Accounting Review , 32(4): 447-478.
  21. Vandemelle, 2009. Management risk reporting practices and their determinants. ,- a study of begian listed firm. Available from https://doclib.uhasselt.be/dspace/bitstream/1942/.
  22. Watson, A. and C. Marston, 2002. Voluntary disclosure of accounting ratios in the UK. The British Accounting Review, 34(4): 289-313.
  23. Webb, K.a., S.F. Cahan and J. Sun, 2008. The effect of globalization and legal environment on voluntary disclosure. The International Journal of Accounting, 43(3): 219–245.
  24. Zeghal, D., 2005. A content analysis of risk management disclosures in Canadian annual reports. Canadian Journal of Administrative Sciences, 22(2): 125-142.

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Funding:

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Acknowledgement:


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