Journal ArticleDOI
Modelling Transparency in Disclosure: The Case of Foreign Exchange Risk Management
Andrew Marshall,Pauline Weetman +1 more
Reads0
Chats0
TLDR
In this article, the degree of transparency observed when disclosures of foreign exchange risk management in financial statements are compared to managerial information on FX risk management policy, as evidenced in questionnaire responses, is investigated.Abstract:
When managers choose not to disclose all the relevant information in their possession in their financial statements, there is an information gap between the managers and users and consequently a lack of transparency We model the degree of transparency observed when disclosures of foreign exchange (FX) risk management in financial statements are compared to managerial information on FX risk management policy, as evidenced in questionnaire responses In this comparative study of US and UK firms we find incomplete disclosure in both samples but with differing aspects In the US case, the information gap is lower where the information has higher relevance or firms with higher financial risk (greater leverage) are signalling the extent of risk, but the gap is greater where firms are in competitive product markets For the UK sample, the information gap is significantly lower where firms have higher financial risk or higher liquidity but the gap is greater where the shares are more closely held We conclude that modelling and explaining this aspect of incomplete accounting disclosure in an international setting must be sufficiently flexible to accommodate national differences in managerial behaviourread more
Citations
More filters
Journal ArticleDOI
Regression Diagnostics: Identifying Influential Data and Sources of Collinearity
TL;DR: This chapter discusses Detecting Influential Observations and Outliers, a method for assessing Collinearity, and its applications in medicine and science.
Journal ArticleDOI
Determinants of narrative risk disclosures in UK interim reports
Hany Elzahar,Khaled Hussainey +1 more
TL;DR: In this paper, the determinants of narrative risk information in the interim reports for a sample of UK non-financial companies were examined by using the manual content analysis to measure the level of risk information.
Journal ArticleDOI
Corporate Governance, Risk Disclosure Practices, and Market Liquidity: Comparative Evidence from the UK and Italy
Tamer Elshandidy,Lorenzo Neri +1 more
TL;DR: In this article, the authors examined the influence of corporate governance on risk disclosure practices in the UK and Italy and also studied the impact of those practices on market liquidity, finding that strongly rather than weakly governed firms exhibiting risk information voluntarily rather than mandatorily improves market liquidity significantly.
Posted Content
Aggregated, Voluntary and Mandatory Risk Disclosure Incentives: Evidence from UK FTSE All Share Companies
TL;DR: In this article, the authors investigated the impact of corporate risk levels on aggregated, voluntary and mandatory risk disclosures in the annual report narratives of UK non-financial listed companies and found that firms characterised by higher levels of systematic, financing risks and risk-adjusted returns and those with lower levels of stock return variability are likely to exhibit significantly high levels of aggregated and voluntary risk disclosures.
Journal ArticleDOI
Improving the relevance of risk factor disclosure in corporate annual reports
Santhosh Abraham,Philip Shrives +1 more
TL;DR: In this paper, the authors developed a model for assessing the quality of risk disclosures and applied the proposed model to four companies in the food production and processing sector and found that company managers prefer providing disclosures that are symbolic rather than substantive.
References
More filters
Book
Content analysis: an introduction to its methodology
TL;DR: History Conceptual Foundations Uses and Kinds of Inference The Logic of Content Analysis Designs Unitizing Sampling Recording Data Languages Constructs for Inference Analytical Techniques The Use of Computers Reliability Validity A Practical Guide
Journal ArticleDOI
A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity
TL;DR: In this article, a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic is presented, which does not depend on a formal model of the structure of the heteroSkewedness.
Journal Article
The Cost of Capital, Corporation Finance and the Theory of Investment
TL;DR: In this article, the effect of financial structure on market valuations has been investigated and a theory of investment of the firm under conditions of uncertainty has been developed for the cost-of-capital problem.
Journal ArticleDOI
Financial ratios, discriminant analysis and the prediction of corporate bankruptcy
TL;DR: In this paper, a set of financial and economic ratios are investigated in a bankruptcy prediction context wherein a multiple discriminant statistical methodology is employed, and the data used in the study are limited to manufacturing corporations, where an initial sample of sixty-six firms is utilized to establish a function which best discriminates between companies in two mutually exclusive groups: bankrupt and nonbankrupt firms.
Journal ArticleDOI
Corporate Ownership Around the World
TL;DR: In this paper, the authors use data on ownership structures of large corporations in 27 wealthy economies to identify the ultimate controlling shareholders of these firms, and they find that, except in economies with very good shareholder protection, relatively few firms are widely held, in contrast to Berle and Means's image of ownership of the modern corporation.
Related Papers (5)
Risk reporting: A study of risk disclosures in the annual reports of UK companies
Philip Linsley,Philip Shrives +1 more
Analysing the determinants of narrative risk information in UK FTSE 100 annual reports
Santhosh Abraham,Paul Cox +1 more