The board's role in risk disclosure: an exploratory study of Italian listed state-owned enterprises

Abstract

The determinants of risk disclosure in the annual reports of listed state-owned enterprises (SOEs) have yet to be fully explored. This paper examines the potential impact of the composition of the boards of directors and other company-specific features on risk disclosure levels. The presence of women on a board made a significant difference to risk disclosure, as did the age of board members. Board directors having an accounting or finance/business qualification affected risk disclosure negatively; company size and an internet visibility were positively related to risk disclosure. Although an Italian study, the lessons here will have application to academia and to practitioners, policy-makers and standard-setters worldwide.

Keywords:

• Agency theory
• board of directors
• corporate governance
• risk disclosure
• state-owned enterprises

Notes

^*Our risk keywords were: risk; risks; loss; reduce; reduction; decreased; contraction; less; lost; low; failure; failures; threat; threats; against; reverse; contrast; adverse; demoted; viable; catastrophe; catastrophic; disasters; lack; deficiency; incapable; inability; impossible; unsuitable; possibility; can; likely; uncertain; uncertainty; unsure; uncertainties; doubt; doubtful; dubious; earnings; gain; useful; challenge; challenges; opportunities; increase; increased; peak; peaks; float; floating; vary; oscillate; differ; significantly; diverge; diversify; important; symptomatic; recovery.