Risk disclosure in listed Greek companies: the effects of the financial crisis

Abstract

Purpose The purpose of this study is to investigate risk disclosure in listed Greek companies. The effects of the financial crisis were also considered. Design/methodology/approach This study aimed to determine the risk-reporting practices of Greek’s non-financial companies listed on the Athens Stock Exchange through a content analysis of their annual reports. Findings Risk identification and anticipation protect businesses and create shareholder value. In recent years, particularly since the economic crisis, risk has become one of the most important business issues. This study concluded that during the crisis, there was an increase in disclosure. Financial, personnel and legal risks were the most reported types of risk. This study also found liquidity to be a very important issue. Research limitations/implications Content analysis has limitations because subjectivity cannot be eliminated. This study measured only the quantity, not the quality, of risk disclosure. The quality of risk reporting will be examined in future research. Originality/value This is the first study on risk disclosure in the non-financial companies listed on the Athens Stock Exchange to conduct a content analysis of the corporate annual reports.

Risk Disclosures in Bank Reporting: Sustainable Finance Roadmap Era

“…This research offers an academic contribution in providing an overview of the face of bank reporting listed on the IDX in the era of the Sustainable Finance Roadmap. Using the methodology through the codification of risk disclosures proposed by (Probohudono et al, 2013) empowerment risk is part of Linsley & Shrives, (2006), and environmental risk is part of Gonidakis et al, (2020). The results from this research are expected to conform with institutional theory.…”

“…Based on the codification of empowerment risk proposed by Linsley & Shrives (2006), environmental risk proposed by Gonidakis et al, (2020), and credit risk, operating risk, business risk, and strategy risk proposed by & Probohudono et al (2013) show that risk disclosures contained in 36 bank reporting listed on the IDX for the 2014-2020 period in the era of the sustainable finance roadmap as an effort to detect risks and anticipate sustainable financial risks. The annual report disclosed risk disclosures using the codification of risk disclosures in this research, presented in Table 2 Table 3 shows the increasing trend of banking companies in presenting standalone sustainability.…”

“…This study uses content analysis with codification proposed by empowerment risk proposed by Linsley & Shrives (2006), environmental risk proposed by Gonidakis et al (2020), andProbohudono et al (2013) to provide an external reference on risk disclosures presented in Table 1. This research documents and examines various aspects of the narrative contained in risk disclosures, review the relative emphasis and assumes that changes in corporate reporting must have something to do with it, which can be studied more deeply (Carnegie & Napier, 1996).…”

“…Risk Disclosures Items Reference Empowerment risk (1)Leadership and management (2)Outsearching (3)Performance incentives (4)Changes readiness (5 Gonidakis et al, (2020) & Probohudono et al, (2013 This study uses thematic content analysis developed by Beattie et al, (2004) as the primary strategy to collect and analyze data. Then, generate inferential and objective identification based on specific content characteristics (Jose & Lee, 2007).…”

“…The results show that by identifying risk disclosures in corporate reporting, companies can anticipate risks, protect businesses (Gonidakis et al, 2020), and help companies make investment decisions (Setiawan & Andriyanto, 2019). Risk disclosure as a form of accountability for RDBs as a company engaged in the financial sector shows that the company prioritizes the Financial Services Authority as a framework for the RDBs Transformation program (Dosinta, 2020).…”