Do narrative-related disclosures in annual reports influence corporate risk-taking? Insights from an emerging economy

Lien Phuong Thi Vu, Anh Ngoc Mai, Thai Hoang Nguyen, Tuan Hoang Nguyen, Thuy Thanh Nguyen and Quyen To Bui

International Review of Economics & Finance, 2025, vol. 103, issue C

Abstract: Utilizing a firm-level panel dataset spanning 2012 to 2023 and applying microeconometric techniques, this study provides novel insights into how narrative-related disclosures in annual reports influence corporate risk-taking in Vietnam. The analysis reveals that neither the extent of forward-looking statements nor the complexity of annual reports has a statistically significant relationship with firm risk. In contrast, a more optimistic tone in disclosures is associated with lower levels of risk-taking. Additionally, CEO characteristics, particularly gender and educational background, play a significant role in shaping risk behavior through their effects on disclosure practices and regulatory engagement. These findings highlight the critical importance of educational attainment in executive selection, given its observable influence on corporate risk-taking outcomes.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006525

DOI: 10.1016/j.iref.2025.104489

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