Risk disclosure behaviour: evidence from the UK extractive industry
Research output: Contribution to journal › Article › peer-review
Design/methodology/approach: A longitudinal empirical study examines probabilistic reserve quantum reporting of UK companies, over a time-period spanning voluntary and mandatory disclosure. The researchers analyse disclosure behaviour under voluntary and mandatory time spans using a logistical regression approach to measure determinants of risk reporting. Form of regulation is considered as the fundamental driver for disclosure whilst controlling for other relevant variables. Implications for developing international regulation are presented with suggestions for further research.
Findings: Mandatory reporting is not seen as a significant influence to disclosure. Degree of risk, quality of audit firms, level of stock exchange and organisational visibility each impact on disclosure. The findings indicate that a mandatory disclosure approach is ineffective, partially explained by mimetic and normative forces and a balancing of agency related costs and benefits. There is an inverse relationship between level of risk and risk reporting.
Originality/value: The paper provides original insight into the area of risk management with particular focus on risk specificity and quantitative metrics for risk profiling re probabilistic estimations not previously tested. The paper introduces risk profiling as a variable in risk disclosure. The paper seeks to inform the IASB’s on-going consideration of risk reporting.
|Journal||Journal of Applied Accounting Research|
|Early online date||9 Feb 2021|
|Publication status||Early online - 9 Feb 2021|
- HUSSAINEY_2020_cright_Risk disclosure behaviour - Evidence from the UK extractive industry
Rights statement: Mcchlery, S. and Hussainey, K. (2021), "Risk disclosure behaviour: evidence from the UK extractive industry", Journal of Applied Accounting Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JAAR-09-2019-0134. Copyright © 2021, Emerald Publishing Limited. All rights reserved.
Accepted author manuscript (Post-print), 1.48 MB, PDF document