What drives mandatory and voluntary risk reporting variations across Germany, UK and US?
Publication date
2015-12Keyword
Automated content analysisFirm and country characteristics
Mandatory and voluntary risk reporting variations
Repeated measures multilevel analysis
Germany
United Kingdom (UK)
United States (US)
Peer-Reviewed
YesOpen Access status
closed Access
Metadata
Show full item recordAbstract
This paper utilises computerised textual analysis to explore the extent to which both firm and country characteristics influence mandatory and voluntary risk reporting (MRR and VRR) variations both within and between non-financial firms across Germany, the UK and the US, over the period from 2005 to 2010. We find significant variations in MRR and VRR between firms across the three countries. Further, we find, on average, that German firms tend to disclose significantly higher (lower) levels of risk information mandatorily than UK (US) firms. German firms, on average, tend to reveal considerably higher (lower) levels of VRR than US (UK) firms. Our results document that MRR and VRR variations are significantly influenced by systematic risk, the legal system and cultural values. We also find that country and firm characteristics have higher explanatory power over the observed variations in MRR than over those in VRR.Version
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Elshandidy T, Fraser I and Hussainey K (2015) What drives mandatory and voluntary risk reporting variations across Germany, UK and US? The British Accounting Review. 47(4): 376–394.Link to Version of Record
https://doi.org/10.1016/j.bar.2014.06.001Type
Articleae974a485f413a2113503eed53cd6c53
https://doi.org/10.1016/j.bar.2014.06.001