The Objective of the Research: To analyze the relationship between the characteristics of the company and the risk disclosure and their impact on financial performance by applying to firms listed in the Egyptian Stock Exchange (EGX 50). Design and Methodology: The applied study was conducted on a sample of (36) firms listed in the Egyptian Stock Exchange (EGX 50), using the method of content analysis in the examination of the annual reports of companies during the period from (2016) to( 2018), with a total of (108) observations, to test the research hypotheses that reflect the relationship between the characteristics of the company and the risk disclosure, as well as the impact of the risk disclosure on the financial performance of companies, the use of multiple regression method in the analysis of the results. Results and Recommendations: The risk disclosure in the sample of companies under study from (2016) to (2018) is very limited because the most common types of financial risk disclosure and disclosure within the proposed indicator range from four to eleven, and There is a positive correlation between some of the characteristics of the company, which is the size of the company and the financial leverage and profitability and have a significant impact on the risk disclosure, While there is a positive correlation between some of the characteristics of the company, which is the industry type and cross listing and the size of the audit office and have no significant impact on the risk disclosure, while there is a positive and statistically significant correlation
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between the risk disclosure and the financial performance. Based on this, the researcher recommends the existence of a professional organization that sets a standard for the risk disclosure that regulates accounting treatment and Companies are required to make mandatory and voluntary disclosures about financial and non-financial risks. As well as the financial regulatory authority requires firms listed in the Stock Exchange to risk disclosure financial and non-financial, which helps report users to knowledge of the real status of the financial performance of companies and this is reflected in the re-confidence in the financial statements and reports published and helping all stakeholders to make rational decisions. Originality and Addition: The present research provides a modest contribution to the current researches in this area by attempting to propose a risk disclosure index consisting of (27) items and risk classification for financial and non-financial risks, this indicator can be used as a guidances in developing a comprehensive accounting standard for risk disclosure in the Egyptian environment |
