Risk-related disclosure: a review of the literature and an agenda for future research

Abstract

Dr Dunne has published in a wide range of academic and professional journals on areas such as accountability, financial reporting, accounting standard setting, charity accounting and governance, international accounting, XBRL, treasury practice and control and corporate governance.

Lack of theory building and testing impedes progress in the factor and network literature

“…However, the data are equally consistent with a common cause explanation, given that the most central item in network model corresponds to the most reliable indicator of a latent variable, i.e. the item with the highest factor loading (Hallquist et al, 2019;Robinaugh, Hoekstra, et al, 2019).…”

“…Network psychometric models estimate conditional dependence relations among variables with the goal to guide causal inference3. Psychometric networks have been applied to data of numerous psychological constructs in the last few years, including mental disorders (Contreras et al, 2019;Robinaugh, Hoekstra, et al, 2019), personality (Beck & Jackson, 2019;Mõttus & Allerhand, 2017), attitudes (Dalege et al, 2015), cognitive abilities (Kan et al, 2019), empathy (Briganti et al, 2018), emotions (Lange et al, 2019), attachment (McWilliams & Fried, 2019), and resilience (Fritz et al, 2019). I see three reasons for this rapid increase of publications.…”

“…The idea that activation 'spreads' through a system is an inference that follows from current network psychometric models only under strict (and, some argue, unrealistic) assumptions (Borgatti, 2005;Bringmann et al, 2019). Similarly, a 16 central symptom in an estimated network model may guide hypotheses regarding intervention, but requires strong causal assumptions for inferences about interventions (Bringmann et al, 2019;Fried et al, 2018;Henry et al, 2020;Robinaugh, Hoekstra, et al, 2019). And claims that central items "constitute the 'backbone' that sustains depressive symptoms in late-life" do not follow from data without assumptions (Belvederi Murri et al, 2018), e.g.…”

Does Structural Capital Affect SDGs Risk-Related Disclosure Quality? An Empirical Investigation of Italian Large Listed Companies

“…These implications, whenever perceived and overseen appropriately, would make the company stronger in the long term, especially in turbulent economies. Moreover, Tahat et al [56] identify several points to key omissions and deficiencies in the extant literature on risk-reporting that is largely dominated by the accounting standards for financial instruments issued by the FASB and the IASB. In this context, specifically, structural capital could play an essential role in addressing those deficiencies and enhancing the quality of corporate risk-related reporting [29].…”

“…Similarly, Guthrie and Petty [71] have argued that what is lacking in voluntary disclosures is the company's attempt to translate discursive into numerical measures. For this reason, quantitative disclosures are in favor, and higher scores can be assigned to them [31,56]. Finally, Hooks et al [72] and Lev and Zarowin [73] mentioned the importance, as well as the increased interest, in corporate reporting to express the forward-looking information.…”