The Explanatory Factors of Risk Disclosure in the Integrated Reports of Listed Entities in Brazil

Fabio Albuquerque (), Eveline Monteiro and Maria Albertina Barreiro Rodrigues
Additional contact information
Fabio Albuquerque: ISCAL—Lisbon Accounting and Business School, Instituto Politécnico de Lisboa, 1069-035 Lisbon, Portugal
Eveline Monteiro: ISCAL—Lisbon Accounting and Business School, Instituto Politécnico de Lisboa, 1069-035 Lisbon, Portugal
Maria Albertina Barreiro Rodrigues: ISCAL—Lisbon Accounting and Business School, Instituto Politécnico de Lisboa, 1069-035 Lisbon, Portugal

Risks, 2023, vol. 11, issue 6, 1-28

Abstract: The gaps observed in entities’ traditional reports and accounts led to the emergence of the integrated report (IR), which includes several content elements, namely the component relating to risks and opportunities. Within this scope, the specific risks that may affect an organization’s capacity to create value are disclosed, among others, which is information of interest to the different stakeholders. This paper aims to identify the explanatory factors that influence the disclosure of risks in IRs. For this purpose, the IRs of entities listed on the Brazilian stock exchange for the year 2020 were assessed. The study was based on the explanatory theories of risk disclosure usually found in the literature, namely, the legitimacy, the agency, the signaling, and the upper echelon theories. Linear regression models were used with the disclosure rates of different types of risk as dependent variables. The size, profitability, indebtedness, independence, and gender diversity in the board of directors (BD), audit, and activity sector comprised the selected explanatory factors. Associations were found between some of the types of risks disclosed and the size of the entity, the existence of an audit, the independence of the BD, and the activity sector. The paper contributes to the literature about the explanatory factors of risk disclosure by exploring its analysis with different typologies and attributes, having the IR as a source of information, which is still little explored. The scientific contribution encompasses proposing a new risk analysis model in the IR. The innovative elements also comprise the classification of risks related to sustainable development (SD), including environmental, social, and governance (ESG) factors.

Keywords: Brazil; disclosure; explanatory factors; integrated reporting; risk (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-9091/11/6/108/pdf (application/pdf)
https://www.mdpi.com/2227-9091/11/6/108/ (text/html)

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:gam:jrisks:v:11:y:2023:i:6:p:108-:d:1164509

Access Statistics for this article

Risks is currently edited by Mr. Claude Zhang

More articles in Risks from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().