Board structure and the informativeness of risk disclosure: Evidence from MENA emerging markets

Néjia Moumen, Hakim Ben Othman, Khaled Hussainey

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Abstract

We examine whether board characteristics affect firms' decision to voluntarily disclose informative information about their risk profiles. We base our study on data from 320 listed firms in nine MENA emerging markets (789 observations) over the period from 2007 to 2009. Our study offers significant contributions to the growing risk disclosure literature. It provides new empirical evidence that information driven by some board characteristics affects the perceived relevance of narrative risk information. Our findings suggest that the composition of the board and its size enhance the informativeness of risk disclosure as it allows investors to better predict future earnings growth. A further finding is that a CEO/Chairperson duality does not impact the way investors trust risk disclosures.
Original languageEnglish
Pages (from-to)82-97
Number of pages16
JournalAdvances in Accounting
Volume35
Early online date25 Sep 2016
DOIs
Publication statusPublished - Dec 2016

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