DOI: 10.5176/2251-1997_AF-60
Authors: Rina Fadhilah Ismail, Roshayani Arshad and Siti Aishah Md Sallah
Abstract:
Disclosure of risk-related information in companies’ annual reports to analysts and investors has been widely debated for well functioning of capital markets. Corporate governance structure is expected to improve the way managers disclose risk information in annual report. However, disclosure of such information could include proprietary information that can lead to competitive disadvantage to the company. Consequently, this could reduce managers’ incentives to provide enhanced disclosure This paper provides analysis of the influence of board compositions and proprietary costs on the discretionary risk disclosure practices among Malaysian companies. Next, this study aims to further examine the quality of discretionary risk disclosure in predicting future firm performance. The results are expected to provide useful information to financial analysts and potential investors in assessing companies’ performance.
Keywords: risk reporting; quality; board composition; propreiatry costs, firm performance
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