The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in Malaysia
Risk reporting is essential in notifying investors on how companies manage the risks they engage in. Even though companies nowadays release information through press releases, corporate websites, and other forms of communications, they still have to disclose more information in their annual reports....
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doaj-225c8a3fa941472e909effd40d5672962021-02-02T03:12:49ZengEDP SciencesSHS Web of Conferences2261-24242017-01-01360000210.1051/shsconf/20173600002shsconf_icga2017_00002The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in MalaysiaRosli Nurul Fida0Mohammed Nor Farizal1Sanusi Zuraidah Mohd2Faculty of Accountancy Universiti Teknologi MARAAccounting Research Institute, Universiti Teknologi MARAAccounting Research Institute, Universiti Teknologi MARARisk reporting is essential in notifying investors on how companies manage the risks they engage in. Even though companies nowadays release information through press releases, corporate websites, and other forms of communications, they still have to disclose more information in their annual reports. The objective of this study is to examine the determinants of voluntary risk disclosures of Shariah compliant companies (ShCCs) in Malaysia, focusing on the religiosity factor and the ownership structure. A quantitative analysis using secondary data was employed as a method to assess the annual reports of 116 Shariah compliant companies in Malaysia for the financial years of 2012 and 2013. The findings of this study reveal that the voluntary risk disclosures in ShCCs on average are not more than sixty per cent. This study indicates no relationship between the religiosity of board members and directors’ ownership to the level of voluntary risk disclosure. More importantly, this study finds the relationship between the existence of government ownership and voluntary risk disclosure in ShCCs. The study adds value to the current body of knowledge in voluntary risk disclosures and suggests the importance of risk management information in the annual reports of ShCCs as Malaysia grows as a leading country in the Islamic economy.https://doi.org/10.1051/shsconf/20173600002Voluntary Risk DisclosuresCorporate GovernanceShariah Compliant CompaniesRisk ReportingMalaysia |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Rosli Nurul Fida Mohammed Nor Farizal Sanusi Zuraidah Mohd |
spellingShingle |
Rosli Nurul Fida Mohammed Nor Farizal Sanusi Zuraidah Mohd The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in Malaysia SHS Web of Conferences Voluntary Risk Disclosures Corporate Governance Shariah Compliant Companies Risk Reporting Malaysia |
author_facet |
Rosli Nurul Fida Mohammed Nor Farizal Sanusi Zuraidah Mohd |
author_sort |
Rosli Nurul Fida |
title |
The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in Malaysia |
title_short |
The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in Malaysia |
title_full |
The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in Malaysia |
title_fullStr |
The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in Malaysia |
title_full_unstemmed |
The Determinants of Voluntary Risk Disclosures: The Case of Shariah Compliant Companies in Malaysia |
title_sort |
determinants of voluntary risk disclosures: the case of shariah compliant companies in malaysia |
publisher |
EDP Sciences |
series |
SHS Web of Conferences |
issn |
2261-2424 |
publishDate |
2017-01-01 |
description |
Risk reporting is essential in notifying investors on how companies manage the risks they engage in. Even though companies nowadays release information through press releases, corporate websites, and other forms of communications, they still have to disclose more information in their annual reports. The objective of this study is to examine the determinants of voluntary risk disclosures of Shariah compliant companies (ShCCs) in Malaysia, focusing on the religiosity factor and the ownership structure. A quantitative analysis using secondary data was employed as a method to assess the annual reports of 116 Shariah compliant companies in Malaysia for the financial years of 2012 and 2013. The findings of this study reveal that the voluntary risk disclosures in ShCCs on average are not more than sixty per cent. This study indicates no relationship between the religiosity of board members and directors’ ownership to the level of voluntary risk disclosure. More importantly, this study finds the relationship between the existence of government ownership and voluntary risk disclosure in ShCCs. The study adds value to the current body of knowledge in voluntary risk disclosures and suggests the importance of risk management information in the annual reports of ShCCs as Malaysia grows as a leading country in the Islamic economy. |
topic |
Voluntary Risk Disclosures Corporate Governance Shariah Compliant Companies Risk Reporting Malaysia |
url |
https://doi.org/10.1051/shsconf/20173600002 |
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