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Author: Michael Dobler Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This paper adopts and reviews discretionary disclosure and cheap talk models to analyze risk reporting incentives and their relation to regulation. Given its inherent discretion, risk reporting depends on disclosure incentives. To assess these incentives the analytical models consider risk reporting as an endogenous feature, thereby providing a benchmark to discuss regulatory attempts. Particularly, discretionary disclosure models refer to verified disclosure, e.g., on risk factors or risk management, whereas cheap talk models refer to unverified disclosure, like managerial forecasts on the impact of risk factors. This provides an analytically-based framework for discussion. Unlike prior literature, which focuses on disclosure cost, I argue that uncertainty of information endowment and issues of credible communication can explain restricted risk reporting observed empirically. Linking regulatory attempts to these restrictions implies that regulation may mitigate the incentives-driven restrictions to some extent, but can have adverse effects on risk reporting. I particularly discuss the link between effective risk monitoring and the precision of risk reporting; the ex post assessment and usefulness of managerial forecasts on impacts of risk factors; the claimed decreasing cost of capital by mandatory risk reporting; and the threat of self-fulfilling prophecies. While the discussion has implications for both specific risk reporting requirements and empirical research, overall results suggest that we should not overestimate the informativeness of risk reporting even in a regulated environment.
Author: Michael Dobler Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This paper adopts and reviews discretionary disclosure and cheap talk models to analyze risk reporting incentives and their relation to regulation. Given its inherent discretion, risk reporting depends on disclosure incentives. To assess these incentives the analytical models consider risk reporting as an endogenous feature, thereby providing a benchmark to discuss regulatory attempts. Particularly, discretionary disclosure models refer to verified disclosure, e.g., on risk factors or risk management, whereas cheap talk models refer to unverified disclosure, like managerial forecasts on the impact of risk factors. This provides an analytically-based framework for discussion. Unlike prior literature, which focuses on disclosure cost, I argue that uncertainty of information endowment and issues of credible communication can explain restricted risk reporting observed empirically. Linking regulatory attempts to these restrictions implies that regulation may mitigate the incentives-driven restrictions to some extent, but can have adverse effects on risk reporting. I particularly discuss the link between effective risk monitoring and the precision of risk reporting; the ex post assessment and usefulness of managerial forecasts on impacts of risk factors; the claimed decreasing cost of capital by mandatory risk reporting; and the threat of self-fulfilling prophecies. While the discussion has implications for both specific risk reporting requirements and empirical research, overall results suggest that we should not overestimate the informativeness of risk reporting even in a regulated environment.
Author: Stefania Veltri Publisher: Springer Nature ISBN: 3030479218 Category : Business & Economics Languages : en Pages : 176
Book Description
This book focuses on the impact of the disclosure of non-financial risk, which could be seen as the most relevant non-financial information (NFI), in the aftermath of the 2014/95/EU Directive. The author analyses whether the switch from voluntary to mandatory NFI enhance the quality of disclosed NF risk-related information and the usefulness of the risk disclosure for investors. The book focuses specifically on the mandatory disclosure of non-financial (NF) risks as required by the EU Directive for listed Italian companies, investigating both the state of art of its disclosure and its usefulness for investors. In doing so, the book contributes to fill two relevant gaps in risk literature. The first research gap is related to the insufficient investigation of the disclosure of NF risks. Companies mandated to disclose risk-related information focused mainly on financial risks, in spite of the width of the definition of risk, conceived as information about any opportunity, danger, threat, or exposure that has or could impact the company in the future. The second gap is that empirical evidence about the effects of corporate risk disclosures is still limited, and the potential benefits of the disclosure of information on risks have not been fully explored. In particular, the relationship between risk disclosures and firm value is under researched, as the risk literature mainly focuses on the incentives question, related to the motives for which companies decide to disclose. The research in this book focuses on Italy, a country that provides a unique opportunity to examine the impact of mandatory NF risk disclosure on firm market value, being one of the biggest industrial European countries that had not mandatory legislation for NFI disclosure, and also one of the leading countries in voluntary corporate social responsibility (CSR) reporting at an international level. It has been carried out in the fiscal year 2017, the first year of the application of the mandatory NF disclosure for obliged Italian listed PIEs. The book contributes both to the measurement literature, as it presents a self-constructed quality NF risks and to the value relevance analysis literature, providing evidence of the usefulness of financial and non-financial risk-related disclosures in the Italian context.
Author: Caraiani, Chira?a Publisher: IGI Global ISBN: 1466687215 Category : Business & Economics Languages : en Pages : 398
Book Description
In today’s society, environmental concerns are at the forefront of entrepreneurial decision-making and planning. With increased attention on an organization’s environmental impact, researchers and business leaders strive to provide the best methodologies and strategies for effective environmental reporting and accountability. Green Accounting Initiatives and Strategies for Sustainable Development presents the latest scholarly research on the economic, social, and environmental objectives essential to the planning and support of future organizations and communities. This publication is an essential reference source for academicians, researchers, advanced level students, and professionals interested in designing business models and financial plans with consideration for environmental and social liabilities. This publication features timely, research based chapters on economic, social, and environmental policies including, but not limited to, green performance measurement, triple bottom line reporting, sustainable societies, environmental protection, and risk and adaptive management.
Author: Mahmoud Marzouk Publisher: Taylor & Francis ISBN: 1000760790 Category : Business & Economics Languages : en Pages : 406
Book Description
This book presents a comprehensive and expert-led insight into the role, types, practises and determinants of corporate narrative reporting (CNR). It provides a detailed overview of the importance of narrative disclosure in understanding the full annual report and, consequently, company performance and future prospects. CNR comprises integral information presented in the front half of the annual report, which helps to tell the full story of a business, providing a comprehensive overview and understanding of both its past and future performance. Supported with illustrative tables and figures throughout, this volume contains a plethora of carefully selected chapters, featuring the analytical insight of knowledgeable academics and researchers from all over the world. Using different data collection and analysis methods, it links and advances theory and practice in the disclosure and presentation of non-financial information in annual reports and other disclosure channels. The book is logically structured into four parts: Narrative Reporting: The State of the Art Empirical Research on Narrative Reporting Narrative Sustainability Reporting Narrative Reporting in Times of Crisis Providing a global insight into CNR in practice, Corporate Narrative Reporting is an invaluable resource for both students and practitioners interested or involved in preparing, reviewing/auditing, analysing and understanding annual reports. It should also be of particular interest to policymakers, regulators and investors.
Author: Cristina Florio Publisher: Springer Nature ISBN: 3030883744 Category : Business & Economics Languages : en Pages : 270
Book Description
This volume offers new, convincing empirical evidence on topical risk- and risk management-related issues in diverse settings, using an interdisciplinary approach. The authors advance compelling arguments, firmly anchored to well-accepted theoretical frameworks, while adopting either qualitative or quantitative research methodologies. The book presents interviews and surveys with risk managers to gather insights on risk management and risk disclosure in practice. Additionally, the book collects and analyzes information contained in public reports to capture risk disclosure and perceptions on risk management impacts on companies’ internal organization. It sheds light on financial and market values to understand the effect of risk management on actual and perceived firm’s performance, respectively. Further, it examines the impacts of risk and risk management on society and the economy. The book improves awareness and advances knowledge on the complex and changeable risk and risk management fields of study. It interweaves among topical, up-to-date issues, peculiar, under-investigated contexts, and differentiated, complementary viewpoints on the same themes. Therefore, the book is a must-read for scholars and researchers, as well as practitioners and policy makers, interested in a better understanding of risk and risk management studies in different fields.
Author: Management Association, Information Resources Publisher: IGI Global ISBN: 1522539336 Category : Business & Economics Languages : en Pages : 482
Book Description
In business, mistakes and errors will inevitably occur. As such, organizations must be constantly alert and ready to meet challenges head-on. Risk and Contingency Management: Breakthroughs in Research and Practice is a comprehensive reference source for the latest scholarly material on trends and techniques for the prediction and evaluation of financial risks and how to diminish their effect. Highlighting a range of pertinent topics such as project management, risk auditing and reporting, and resource management, this multi-volume book is ideally designed for researchers, academics, professionals, managers, students, and practitioners interested in risk and contingency management.
Author: Philip Linsley Publisher: Springer ISBN: 3030160459 Category : Business & Economics Languages : en Pages : 313
Book Description
This proceedings book presents a multidisciplinary perspective on risk and risk management. Featuring selected papers presented at the European Risk Research Network (ERRN) 8th European Risk Conference “Multiple Perspectives in Risk and Risk Management” held in Katowice, Poland, it explores topics such as risk management systems, risk behaviors, risk culture, big data and risk reporting and regulation. The contributors adopt a wide variety of theoretical approaches and either qualitative or quantitative methodologies. Contemporary companies operate in a highly dynamic environment, accompanied by the constant development of the information technology, making decision-making processes highly complex and increasing the risk related to company performance. The European Risk Research Network (ERRN) was established in 2006 with the aim of stimulating cross-disciplinary research in the area of risk management. The network includes academics and industry experts from the fields of accounting, auditing, financial economics and mathematical finance. To keep the network lively and fruitful, regular “European Risk Conferences” are organized to present papers from a broad spectrum of risk and risk management areas. Featuring contributions for Italy, South Africa, Germany and Poland, this proceedings book is a valuable reference resource for students, academics, and practitioners in risk and risk management
Author: William A. Barnett Publisher: Emerald Group Publishing ISBN: 1837972842 Category : Business & Economics Languages : en Pages : 193
Book Description
ASEAN economies have much insight to offer the world, from investor behaviour during COVID-19, and deep-rooted attitudes towards risk and corruption, to achievement of the Sustainable Development Goals through the gender perspective.
Author: Michael Dobler
Author: Michael Dobler
Author: 
Author: Stefania Veltri
Author: 
Author: Caraiani, Chira?a
Author: Mahmoud Marzouk
Author: Cristina Florio
Author: Management Association, Information Resources
Author: Philip Linsley
Author: William A. Barnett