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What drives mandatory and voluntary risk reporting variations across Germany, UK and US?

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This paper utilises computerised textual analysis to explore the extent to which both firm and country characteristics influence mandatory and voluntary risk reporting (MRR and VRR) variations both within and between non-financial firms across Germany, the UK and the US, over the period from 2005 to 2010. We find significant variations in MRR and VRR between firms across the three countries. Further, we find, on average, that German firms tend to disclose significantly higher (lower) levels of risk information mandatorily than UK (US) firms. German firms, on average, tend to reveal considerably higher (lower) levels of VRR than US (UK) firms. Our results document that MRR and VRR variations are significantly influenced by systematic risk, the legal system and cultural values.We also find that country and firm characteristics have higher explanatory power over the observed variations in MRR than over those in VRR.
Original languageEnglish
Pages (from-to)376-394
JournalThe British Accounting Review
Issue number4
Early online date20 Jun 2014
Publication statusPublished - 1 Dec 2015


  • HUSSAINEY_cright_5A_What drives mandatory and voluntary risk reporting variations across Germany, UK and US

    Rights statement: NOTICE: this is the author’s version of a work that was accepted for publication in The British Accounting Review Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in The British Accounting Review, 47, (2015), DOI: 10.1016/

    Accepted author manuscript (Post-print), 596 KB, PDF document

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