Portsmouth Business School

Thesis summary

Study of risk reporting is an emerging area and the work that has been done focuses on developed markets. This study aims to address the gap in the current disclosure literature; by examining risk disclosure in emerging markets. The research objective is to examine risk information disclosures within annual reports of the UAE listed companies as an emerging market. Another objective is to provide insights into the current risk disclosure environment, its characteristics and the usefulness of the information disclosed to the annual report users. The factors influence risk disclosure level will be investigated. Another aim is to extend our understanding of risk-related financial reporting practice in a developing market. The research will study the determinants of the extent of compliance with risk-related IFRSs.

The study will interpret the subject matter of risk disclosure in the light of some disclosure theories for instance agency theory, signalling theory and information asymmetry theory. Hypotheses development involves investigating the relationship between risk disclosure level and some firm characteristics for instance company size, firm's level of risk, industry type and auditor size. The study will examine the association between risk disclosure level and some corporate governance characteristics for example ownership structure and the board of director.

Following content analysis approach, the author will summarise, classify and analyse in details risk information. The study will employ disclosure index technique in order to examine the quantity of risk disclosure. An index of risk disclosure based on voluntary risk disclosure and mandatory risk disclosure requirements will be computed for each company in order to examine the extent of risk disclosure level. Self-construct IFRSs checklist will be developed in order to investiagate the extent of compliance to risk disclosure requirements with IFRSs. Regression analysis will be carried out in order to examine the risk disclosure level (Dependent variable) and its determinants (Independent variables).

The analysis of the research would be an interest of regulators, accounting setters, managers, the board of directors and stakeholders who focus on disclosure. The study may provide useful insights that would help investors in interpreting risk disclosure within financial reports.