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CCG Risk
CCG Risk
CCG Risk
This study has used three dimensions of the Corporate Governance Mechanism namely Board
Structure, Ownership Structure and Audit Structure as independent variables which have not
been used previously. Secondly in the absence of accounting standard on risk disclosure namely
“Financial Instruments: Disclosure” this study extends knowledge of risk disclosure in Pakistani
listed companies. Finally, the study contributes to risk disclosure literature in the Pakistan
context as previously researcher has focused very little on risk disclosure.
Research Question:
Main research question of this study is “Whether Corporate Governance predictors have
significant impact on Risk Disclosure of the firms listed on Pakistan Stock Exchange?”
Related Articles:
Analysing the determinants of narrative risk information in UK FTSE 100 annual reports by
Abraham.and Cox (2007).
Corporate governance and risk reporting in South Africa:a study of corporate risk disclosures in
the pre-and post-2007/2008 global financial crisis periods by Ntim and Thomas (2013),
Corporate governance, risk disclosure practices, and market liquidity: comparative evidence
from the UK and Italy by Elshandidy and Neri (2015)
The board’s role in risk disclosure: an exploratory study of Italian listed state-owned enterprises
by Allini and Hussainey (2016)
Dependent variable measurement:
Total Risk Disclosure is the total risk word count, including positive, negative and statistical
risk keywords;
Positive Risk Disclosure is the positive risk word count; and
Negative Risk Disclosure is the negative risk word count.
This study has adopted content analysis to analyse risk information in a complete annual report
as opposed to specific section. There are two principal methods of content analysis, which were
primarily adopted in risk disclosure literature: the manual method and the automated method.
Either method may adopt word, sentence or line as a unit of analysis.