The State of the Art on Corporate Risk Disclosure: A Systematic Literature Review

Chiara Mio (), Nicolas Canestraro () and Antonio Costantini ()
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Chiara Mio: Venice School of Management, Università Ca' Foscari Venice
Nicolas Canestraro: Venice School of Management, Università Ca' Foscari Venice
Antonio Costantini: Venice School of Management, Università Ca' Foscari Venice

No 7, Working Papers from Venice School of Management - Department of Management, Università Ca' Foscari Venezia

Abstract: This article reviews the academic literature on corporate risk disclosure, focusing on nonfinancial risks in the European regulatory context, particularly considering the Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive (CSRD). Through a systematic review of 140 scientific papers, this study pinpoints key drivers and trends in corporate risk disclosure, such as regulatory compliance, stakeholder pressure, and emerging technologies. Our literature review suggests that while the NFRD has engendered an improvement in the quality and quantity of non- financial risk reporting, firms still tend to focus on past and present risks, with limited forward-looking or negative risk information. Furthermore, this article underscores gaps in current literature, such as the lack of focus on developing countries, financial-sector companies, and the infrequent use of qualitative research methodologies. The paper concludes by recommending a multitheoretical framework and further investigation into the usefulness of non-financial risk disclosures for investors and other stakeholders.

Keywords: risk disclosure; risk reporting; non-financial risks; Non-Financial Reporting Directive; Corporate Sustainability Reporting Directive (search for similar items in EconPapers)
JEL-codes: M49 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2024-10
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