Abstract:
Purpose: The purpose of this paper is to contribute to the existing disclosure literature by examining the determinants of corporate risk disclosure (CRD) in the internet reporting for a sample of Egyptian listed companies on the Egyptian Stock Exchange (EGX).
Design/methodology/approach: This study depends on a sample of 76 Egyptian companies included in the EGX 100 in the period (2012-2014). The study applies a content analysis and uses a sentence-based method to measure CRD in the internet reporting. Ordinary least squares regression analysis is used to examine the impact of firm and board characteristics on CRD in the internet reporting.
Findings: The empirical analysis shows that large Egyptian companies tend to disclose more risk information in their internet reporting. Moreover, the results indicate that there is a significant positive association between sector type and CRD in the internet reporting. The results show non-significant association between CRD and other firm characteristics (cross listing and level of risk). Finally, there are no significant associations between CRD and board characteristics variables (board size; board composition and CEO Duality).
Research Implications: The study’s findings have practical implications. It aids in informing policy makers considering implementing new economic reform programs about the properties of Egyptian companies that disclose risk information in their internet reporting. It provides insights on CRD in Egyptian companies for standards setters and professional authorities to improve risk reporting practices in order to help stakeholders in making good decisions.
Originality/Value: This study is one of the first studies to examine the determinants of CRD in the internet reporting for a sample of Egyptian companies.
Keywords: Egyptian stock exchange, Internet reporting, Content analysis, Risk disclosure.
Paper Type: Research paper.
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