This paper provides a wide-ranging and up-to-date (1997–2016) review of the archival empirical risk-reporting literature. The reviewed papers are classified into two principal themes: the incentives for and/or informativeness of risk reporting. Our review demonstrates areas of significant divergence in the literature specifically: mandatory versus voluntary risk reporting, manual versus automated content analysis, within-country versus cross-country variations in risk reporting, and risk reporting in financial versus non-financial firms. Our paper identifies a number of issues which require further research. In particular we draw attention to two: first, a lack of clarity and consistency around the conceptualization of risk; and second, the potential costs and benefits of standard-setters’ involvement.
Risk reporting: A review of the literature and implications for future research✩ Available to Purchase
We thank the Associate Editor, Michael Willenborg, and two anonymous referees for their constructive and helpful comments. This paper has benefited from comments and suggestions from participants at the 18th Annual Conference of the Financial Reporting and Business Communication Research Unit (University of Bristol, 2014) and the British Accounting and Finance Association Conference, South West Area Group (Cardiff Business School, 2014). We thank Chris Chapman, Mark Clatworthy, Stuart Cooper, Mike Jones, Kevin Holland and Steven Young for their helpful suggestions.
Elshandidy T, Shrives PJ, Bamber M, Abraham S (2018), "Risk reporting: A review of the literature and implications for future research✩". Journal of Accounting Literature, Vol. 40 No. 1 pp. 54–82, doi: https://doi.org/10.1016/j.acclit.2017.12.001
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