Market risk disclosure: evidence from Malaysian listed firms

Radiah Othman and Rashid Ameer

Journal of Financial Regulation and Compliance, 2009, vol. 17, issue 1, 57-69

Abstract: Purpose - The purpose of this paper is to investigate the market risk disclosure practices among Malaysian listed firms. Specifically, it aims to examine the level of compliance with FRS132: Financial Instruments – Disclosure and Presentation for financial periods beginning or after 2006. Design/methodology/approach - The approach taken is content analysis and coding procedure. Findings - Although a large number of companies have shown compliance with FRS132 in relation to disclosing the financial risk management policy, there are systematic differences across companies in terms of level of details (i.e. qualitative and quantitative) disclosure. Interest rate disclosure was the most mentioned category and the credit risk was the least mentioned category of market risk. There is telling evidence that most Malaysian firms did not engage in hedging any type of market risk over the reporting period of 2006‐2007. Research limitations/implications - There is a need for some standardized risk reporting format to achieve greater financial transparency to make investors aware of the market risks. Originality/value - This is believed to be the first study to provide survey findings on the use of derivatives instruments by listed firms in Malaysia.

Keywords: Disclosure; Financial reporting; Malaysia; Financial risk (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jfrcpp:v:17:y:2009:i:1:p:57-69

DOI: 10.1108/13581980910934045

Access Statistics for this article

Journal of Financial Regulation and Compliance is currently edited by Prof John Ashton

More articles in Journal of Financial Regulation and Compliance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().