The determinants and economic consequences of risk disclosure

: evidence from Saudi Arabia

Abstract

This study makes a valuable contribution to the existing literature on corporate risk disclosure (RD)in emerging economies with a focus on the Saudi Arabian economy in the context of the Middle East. The vast majority of previous RD literature has placed emphasis on the context of developed nations. This study undertakes a detailed analysis of RD practices by adopting a quantitative approach for the collection and analysis of datasets using a sample of non-financial firms listed on the Saudi Stock Exchange (Tadawal) over the period 2010 to 2014. The measurement of risk reporting is thus based on a manual content analysis technique, regression analysis models are used to identify the factors that affect risk reporting, and the value of firms in the stock market were measured using the Tobin's Q valuation model. Regression analysis is used to examine the impact,if any, of risk reporting on the value of the firms in the sample. The data gathered shows that the average RD level among all the samples is 17%. The result of the examination of the effect of the corporate governance mechanisms on risk disclosure shows that, of board related characteristics,board size and independent directors are negatively related to a statistically significant degree.Auditor type is positively statistically significant at the 1% level, and governmental ownership is negatively associated with RD to a statistically significant degree at the 1% level. The result of the examination of the impact of RD on firm value shows that the relationship between RD and firm value (as measured by TQ) is found to be negatively statistically significant.

Date of Award	May 2017
Original language	English
Awarding Institution	University of Portsmouth
Supervisor	Khaled Hussainey (Supervisor) & Antonios Kallias (Supervisor)