Risk Reporting: Development, Regulation and Current Practice.

Lorenzo Neri

Risk Reporting: Development, Regulation and Current Practice.

An investigation on Italian Stock Market

The book starts from an overview of the economic theories below voluntary and narrative disclosure and then focuses on narrative risk disclosure. It analyzes the risk reporting relevance, reviewes and compares the regulation across a range of different countries, and it finally focus on risk disclosure in the narrative section of annual reports of non financial companies listed on Italian Stock Market.

Pagine: 142

ISBN: 9788856876611

Edizione:1a edizione 2011

Codice editore: 365.891

Possibilità di stampa: No

Possibilità di copia: No

Possibilità di annotazione:

Formato: PDF con DRM per Digital Editions

Informazioni sugli e-book

Shareholders are aware that any investment they hold in a company is subject to risk and also companies have become more attentive to risk latterly. In part this may be caused by having to operate in more aggressive business environments where change is continuous.
It may also, in part, be a result of directors becoming conscious of shareholders' increased concerns about risk. Directors are looking to reduce and manage company risk exposures as this creates a more stable company and this then allays the anxieties of shareholders. This happens only if directors provide discussions of the major risks that have impacted upon the company in the past or may impact upon the company in the future.
The implementation of the Directive 51/2003/CE requires an enrichment of the risk disclosure information in the annual report. Generally, the risk disclosure regulations across countries are all moving towards the same goal.
This work starts from an overview of the economic theories below voluntary and narrative disclosure and then focuses on narrative risk disclosure. I analyze the risk reporting relevance, review and compare the regulation across a range of different countries; I finally focus on risk disclosure in the narrative section of annual reports of non financial companies listed on Italian Stock Market. To obtain a measure of risk information I apply a content analysis and I develop a software, Bako (Business Analysis through Key Occurrences), to verify and support the results obtained by the manual content analysis. Finally, I assign a risk disclosure score to each company and test whether there are any corporate differences between companies that have high or low risk disclosure level.

Lorenzo Neri is adjunct professor in the department of Business and Finance at the University of Florence. He received a Phd in Financial Accounting from the University of Florence. His research interests include financial reporting and voluntary disclosure.



Indice

Introduction
Acknowledgment
Corporate reporting and voluntary disclosure
(The informational approach of corporate financial reporting; Corporate disclosure and information asymmetry: agency theory and adverse selection; Further motivation for voluntary disclosure: manager behaviour; Corporate voluntary disclosure: a problem of benefits and costs; International studies on voluntary disclosure)
Voluntary disclosure and risk reporting: prior literature and international situation
(Risk information in voluntary disclosure; Risk categorisation and risk management; The affirmation of risk disclosure and regulation on risk reporting; An international review of risk literature; Risk reporting in Italy)
Research questions, research methodology and sample composition
(Research questions: increase in risk disclosure? Correlation between risk disclosure and company characteristics?; Research methodology; Sample Composition)
Results and comments
(The extent of the Annual Report and MD&A; The dimension of risk disclosure; The presentation of statistical results)
Conclusion
List of Figures, Tables and Graphs
Appendix
Bibliography



Collana: Economia - Ricerche

Argomenti: Economia e gestione aziendale

Livello: Studi, ricerche

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