Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future Directions
Research aim: Corporate risk disclosure (CRD) has long been regarded as a focal point of corporate communication since adequate disclosure of risk information in the annual report may reduce investors’ uncertainty and assist investors to make sound investment decisions. However, previous reviews of...
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| Format: | Article |
| Language: | English |
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Universiti Malaya
2020-08-01
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| Series: | Asian Journal of Accounting Perspectives |
| Subjects: | |
| Online Access: | https://sare.um.edu.my/index.php/AJAP/article/view/25874 |
| _version_ | 1818946554235453440 |
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| author | Wong Baan Wahh Edward Wong Sek Khin Mazni Abdullah |
| author_facet | Wong Baan Wahh Edward Wong Sek Khin Mazni Abdullah |
| author_sort | Wong Baan Wahh |
| collection | DOAJ |
| description | Research aim: Corporate risk disclosure (CRD) has long been regarded as a focal point of corporate communication since adequate disclosure of risk information in the annual report may reduce investors’ uncertainty and assist investors to make sound investment decisions. However, previous reviews of CRD literature have tended to focus on developed economies which may have limited applicability in the emerging markets. The aim of this article is, therefore, to extend reviews of CRD literature to emerging economies.
Design/ Methodology/ Approach: This paper concentrated on articles published in international peer-reviewed academic journals. Guided by the review methods recommended by Fink (2010) and Tranfield et al. (2003), a systematic review of the most relevant databases within social sciences was performed.
Research findings: Valuable evidence emerge from the review. The authors found that most prior risk disclosure studies have focused on the developed economies and that similar research within the context of emerging countries remains under-represented. The literature review also suggests that CRD studies have mainly adopted content analysis to examine the scope of voluntary disclosure practices. The findings show that agency theory remains the most dominant theory to explain the managerial attitudes towards risk disclosure practices. More interestingly, the authors found that rather than solely relying on a single theory alone to explain the phenomenon of CRD, more studies are incorporating multiple theoretical lenses to examine CRD given the diverse nature of voluntary risk reporting.
Theoretical contribution/ Originality: The paper adds to the limited number of systematic literature reviews relating to CRD in both developed and emerging economies.
Practitioner/ Policy implication: By providing an important snapshot through an integrated and synthesised overview of the current body of knowledge in the field of CRD, the findings may generate new insights to regulatory bodies and standard setters to refine policies on voluntary disclosure practices, conduct more effective monitoring on the level of information transparency among listed companies.
Keywords: Voluntary disclosure, Risk Reporting, Emerging economies, Theoretical Perspectives
Type of article: Literature review
JEL Classification: M40, M41, G30 |
| first_indexed | 2024-12-20T08:16:51Z |
| format | Article |
| id | doaj.art-419ebabe15734f30b096e671250c840e |
| institution | Directory Open Access Journal |
| issn | 2672-7293 0128-0384 |
| language | English |
| last_indexed | 2024-12-20T08:16:51Z |
| publishDate | 2020-08-01 |
| publisher | Universiti Malaya |
| record_format | Article |
| series | Asian Journal of Accounting Perspectives |
| spelling | doaj.art-419ebabe15734f30b096e671250c840e2022-12-21T19:47:06ZengUniversiti MalayaAsian Journal of Accounting Perspectives2672-72930128-03842020-08-01132Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future DirectionsWong Baan Wahh0Edward Wong Sek Khin1Mazni Abdullah2School of Social Sciences, Heriot-Watt University Malaysia, Precinct 5, 62200 Putrajaya, Malaysia. & Faculty of Business and Accounting, University of Malaya, 50603 Kuala Lumpur, MalaysiaFaculty of Business and Accounting, University of Malaya, 50603 Kuala Lumpur, MalaysiaFaculty of Business and Accounting, University of Malaya, 50603 Kuala Lumpur, MalaysiaResearch aim: Corporate risk disclosure (CRD) has long been regarded as a focal point of corporate communication since adequate disclosure of risk information in the annual report may reduce investors’ uncertainty and assist investors to make sound investment decisions. However, previous reviews of CRD literature have tended to focus on developed economies which may have limited applicability in the emerging markets. The aim of this article is, therefore, to extend reviews of CRD literature to emerging economies. Design/ Methodology/ Approach: This paper concentrated on articles published in international peer-reviewed academic journals. Guided by the review methods recommended by Fink (2010) and Tranfield et al. (2003), a systematic review of the most relevant databases within social sciences was performed. Research findings: Valuable evidence emerge from the review. The authors found that most prior risk disclosure studies have focused on the developed economies and that similar research within the context of emerging countries remains under-represented. The literature review also suggests that CRD studies have mainly adopted content analysis to examine the scope of voluntary disclosure practices. The findings show that agency theory remains the most dominant theory to explain the managerial attitudes towards risk disclosure practices. More interestingly, the authors found that rather than solely relying on a single theory alone to explain the phenomenon of CRD, more studies are incorporating multiple theoretical lenses to examine CRD given the diverse nature of voluntary risk reporting. Theoretical contribution/ Originality: The paper adds to the limited number of systematic literature reviews relating to CRD in both developed and emerging economies. Practitioner/ Policy implication: By providing an important snapshot through an integrated and synthesised overview of the current body of knowledge in the field of CRD, the findings may generate new insights to regulatory bodies and standard setters to refine policies on voluntary disclosure practices, conduct more effective monitoring on the level of information transparency among listed companies. Keywords: Voluntary disclosure, Risk Reporting, Emerging economies, Theoretical Perspectives Type of article: Literature review JEL Classification: M40, M41, G30https://sare.um.edu.my/index.php/AJAP/article/view/25874Voluntary disclosureRisk ReportingEmerging economiesTheoretical Perspectives |
| spellingShingle | Wong Baan Wahh Edward Wong Sek Khin Mazni Abdullah Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future Directions Asian Journal of Accounting Perspectives Voluntary disclosure Risk Reporting Emerging economies Theoretical Perspectives |
| title | Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future Directions |
| title_full | Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future Directions |
| title_fullStr | Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future Directions |
| title_full_unstemmed | Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future Directions |
| title_short | Corporate Risk Disclosure in Emerging Economies: A Systematic Literature Review and Future Directions |
| title_sort | corporate risk disclosure in emerging economies a systematic literature review and future directions |
| topic | Voluntary disclosure Risk Reporting Emerging economies Theoretical Perspectives |
| url | https://sare.um.edu.my/index.php/AJAP/article/view/25874 |
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