The topic, corporate risk disclosure, has received considerable attention recently. This study provides insights into the types of risk disclosures in Bahraini capital markets from a sample of company annual reports using content analysis. It investigates the nature of risk disclosures and identifies a number of determinants of these disclosures. Three regression models were employed using three dependent variables (systematic (SRD); unsystematic (USRD) and total risk disclosures) and ten independent variables as the determinants of risk disclosures. One of the main findings in the study is that corporate risk disclosures are very limited in the annual reports of sampled companies. Concerning the types of SRD, the most common type of risk disclosures is interest rate risk (IRR) in financial and non-financial sectors. On the other hand, the highest number of risk disclosures in both sectors for the types of USRD is operational risk (OR). There are significant associations between the quantity of SRD and some independent variables as firm size, Beta of the company and firm listing. In the same line, other significant associations are reported between the quantity of USRD and a number of independent variables (as firm size, issuance of shares, firm profitability and percentage of free float). Firm size is seen as a significant determinant of all types of risk disclosures. |
