Risk Management Committee and Textual Risk Disclosure

Eka Sari Ayuningtyas and Iman Harymawan
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Eka Sari Ayuningtyas: Department of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya 60115, Indonesia
Iman Harymawan: Department of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya 60115, Indonesia

Risks, 2022, vol. 10, issue 2, 1-15

Abstract: This research examines the relationship between the risk management committee and textual risk disclosure. Textual risk disclosure is measured using the use of a risk-contained tone in the annual report. We employed empirical analysis for the Indonesian listed firms for the period 2010 to 2018. The findings of this research suggest that the existence of the risk management committee gives more risk disclosure. This finding implicates that firms with a risk management committee will give more risk disclosure, because they have a specific committee which have abilities concerning firm risk. The first additional analysis suggests that the results are more pronounced for firms within the period after the regulation to have a risk management committee was applied in Indonesia. We also make second additional analysis for different level of technology within industry. The existence of risk management committee for managing risk disclosure is more pronounced for company within high level of technology industry. We provide several contributions to the users of the financial statements such as shareholders and other stakeholders, especially regulatory bodies in Indonesia.

Keywords: risk management committee; risk disclosure; tone; MD&A (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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