The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil
The gaps observed in entities’ traditional reports and accounts led to the emergence of the integrated report (IR), which includes several content elements, namely the component relating to risks and opportunities. Within this scope, the specific risks that may affect an organization’s capacity to c...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-06-01
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| Series: | Risks |
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| Online Access: | https://www.mdpi.com/2227-9091/11/6/108 |
| _version_ | 1797592757966995456 |
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| author | Fabio Albuquerque Eveline Monteiro Maria Albertina Barreiro Rodrigues |
| author_facet | Fabio Albuquerque Eveline Monteiro Maria Albertina Barreiro Rodrigues |
| author_sort | Fabio Albuquerque |
| collection | DOAJ |
| description | The gaps observed in entities’ traditional reports and accounts led to the emergence of the integrated report (IR), which includes several content elements, namely the component relating to risks and opportunities. Within this scope, the specific risks that may affect an organization’s capacity to create value are disclosed, among others, which is information of interest to the different stakeholders. This paper aims to identify the explanatory factors that influence the disclosure of risks in IRs. For this purpose, the IRs of entities listed on the Brazilian stock exchange for the year 2020 were assessed. The study was based on the explanatory theories of risk disclosure usually found in the literature, namely, the legitimacy, the agency, the signaling, and the upper echelon theories. Linear regression models were used with the disclosure rates of different types of risk as dependent variables. The size, profitability, indebtedness, independence, and gender diversity in the board of directors (BD), audit, and activity sector comprised the selected explanatory factors. Associations were found between some of the types of risks disclosed and the size of the entity, the existence of an audit, the independence of the BD, and the activity sector. The paper contributes to the literature about the explanatory factors of risk disclosure by exploring its analysis with different typologies and attributes, having the IR as a source of information, which is still little explored. The scientific contribution encompasses proposing a new risk analysis model in the IR. The innovative elements also comprise the classification of risks related to sustainable development (SD), including environmental, social, and governance (ESG) factors. |
| first_indexed | 2024-03-11T01:57:43Z |
| format | Article |
| id | doaj.art-25d50c43fc2a4e808c336c702b76c232 |
| institution | Directory Open Access Journal |
| issn | 2227-9091 |
| language | English |
| last_indexed | 2024-03-11T01:57:43Z |
| publishDate | 2023-06-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Risks |
| spelling | doaj.art-25d50c43fc2a4e808c336c702b76c2322023-11-18T12:28:34ZengMDPI AGRisks2227-90912023-06-0111610810.3390/risks11060108The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in BrazilFabio Albuquerque0Eveline Monteiro1Maria Albertina Barreiro Rodrigues2ISCAL—Lisbon Accounting and Business School, Instituto Politécnico de Lisboa, 1069-035 Lisbon, PortugalISCAL—Lisbon Accounting and Business School, Instituto Politécnico de Lisboa, 1069-035 Lisbon, PortugalISCAL—Lisbon Accounting and Business School, Instituto Politécnico de Lisboa, 1069-035 Lisbon, PortugalThe gaps observed in entities’ traditional reports and accounts led to the emergence of the integrated report (IR), which includes several content elements, namely the component relating to risks and opportunities. Within this scope, the specific risks that may affect an organization’s capacity to create value are disclosed, among others, which is information of interest to the different stakeholders. This paper aims to identify the explanatory factors that influence the disclosure of risks in IRs. For this purpose, the IRs of entities listed on the Brazilian stock exchange for the year 2020 were assessed. The study was based on the explanatory theories of risk disclosure usually found in the literature, namely, the legitimacy, the agency, the signaling, and the upper echelon theories. Linear regression models were used with the disclosure rates of different types of risk as dependent variables. The size, profitability, indebtedness, independence, and gender diversity in the board of directors (BD), audit, and activity sector comprised the selected explanatory factors. Associations were found between some of the types of risks disclosed and the size of the entity, the existence of an audit, the independence of the BD, and the activity sector. The paper contributes to the literature about the explanatory factors of risk disclosure by exploring its analysis with different typologies and attributes, having the IR as a source of information, which is still little explored. The scientific contribution encompasses proposing a new risk analysis model in the IR. The innovative elements also comprise the classification of risks related to sustainable development (SD), including environmental, social, and governance (ESG) factors.https://www.mdpi.com/2227-9091/11/6/108Brazildisclosureexplanatory factorsintegrated reportingrisk |
| spellingShingle | Fabio Albuquerque Eveline Monteiro Maria Albertina Barreiro Rodrigues The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil Risks Brazil disclosure explanatory factors integrated reporting risk |
| title | The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil |
| title_full | The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil |
| title_fullStr | The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil |
| title_full_unstemmed | The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil |
| title_short | The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil |
| title_sort | explanatory factors of risk disclosure in the integrated reports of listed entities in brazil |
| topic | Brazil disclosure explanatory factors integrated reporting risk |
| url | https://www.mdpi.com/2227-9091/11/6/108 |
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