Board Composition and Voluntary Risk Disclosure During Uncertainty

被引:5
作者
Adelopo, Ismail [1 ]
Yekini, Kemi C. [2 ]
Maina, Robert [3 ]
Wang, Yan [4 ]
机构
[1] Univ West England, Bristol Business Sch, Bristol, Avon, England
[2] SOAS Univ London, Sch Finance & Management, London, England
[3] Constituency Dev Fund, Nairobi, Kenya
[4] Nottingham Trent Univ, Nottingham Business Sch, Dept Accounting & Finance, Nottingham, England
来源
INTERNATIONAL JOURNAL OF ACCOUNTING | 2021年 / 56卷 / 02期
关键词
Risk disclosure; board composition; agency theory; uncertainty; UK; OF-THE-LITERATURE; CORPORATE GOVERNANCE; GENDER-DIFFERENCES; FIRM PERFORMANCE; AGENCY THEORY; PANEL-DATA; OWNERSHIP; DIRECTORS; DETERMINANTS; CRISIS;
D O I
10.1142/S1094406021500050
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This study examines the relationship between board composition and voluntary risk disclosure during uncertainty for a sample of United Kingdom-listed companies. A strand of the disclosure literature focusing on the impact of the board on corporate disclosure argues that board composition influences the extent and quality of corporate disclosure, but such literature has largely used data from stable periods and rarely on risk disclosure. Instead, using agency theory, we examine the impact of board composition on risk disclosure during corporate uncertainty for a sample of UK-listed companies for the period 2006-2015. We used content analysis to derive our measure of risk disclosure and measure board composition based on its size, independence, meeting frequency, and gender diversity. Our regression analyses controlled for the extent of firms' agency costs, firm risk level, and the impact of mandatory risk disclosure regulation, among other control variables. Consistent with our hypotheses, we find that board size and board independence are positively associated with firms' risk disclosure during uncertainty, but board meeting frequency and gender diversity seem inconsequential for risk disclosure. Firms' risk disclosure is positively associated with risk level and mandatory risk disclosure. Our results are robust to alternative model specifications and endogeneity concerns. We highlight the implications of our findings for management practice and regulations.
引用
收藏
页数:46
相关论文
共 94 条
[1]   The association between audit committee characteristics and audit fees [J].
Abbott, LJ ;
Parker, S ;
Peters, GF ;
Raghunandan, K .
AUDITING-A JOURNAL OF PRACTICE & THEORY, 2003, 22 (02) :17-32
[2]   The influence of board size on intellectual capital disclosure by Kenyan listed firms [J].
Abeysekera, Indra .
JOURNAL OF INTELLECTUAL CAPITAL, 2010, 11 (04) :504-+
[3]  
Abraham S., 2007, BRIT ACCOUNT REV, V39, P227, DOI DOI 10.1016/J.BAR.2007.06.002
[4]   Women in the boardroom and their impact on governance and performance [J].
Adams, Renee B. ;
Ferreira, Daniel .
JOURNAL OF FINANCIAL ECONOMICS, 2009, 94 (02) :291-309
[5]   Determinants of bank profitability before, during, and after the financial crisis [J].
Adelopo, Ismail ;
Lloydking, Robert ;
Tauringana, Venancio .
INTERNATIONAL JOURNAL OF MANAGERIAL FINANCE, 2018, 14 (04) :378-398
[6]   Voluntary disclosure practices amongst listed companies in Nigeria [J].
Adelopo, Ismail .
ADVANCES IN ACCOUNTING, 2011, 27 (02) :338-345
[7]   An organizational approach to comparative corporate governance: Costs, contingencies, and complementarities [J].
Aguilera, Ruth V. ;
Filatotchev, Igor ;
Gospel, Howard ;
Jackson, Gregory .
ORGANIZATION SCIENCE, 2008, 19 (03) :475-492
[8]   Deja Vu: The Effect of Executives and Directors with Prior Banking Crisis Experience on Bank Outcomes around the Global Financial Crisis [J].
Ahmed, Anwer S. ;
Christensen, Brant E. ;
Olson, Adam J. ;
Yust, Christopher G. .
CONTEMPORARY ACCOUNTING RESEARCH, 2019, 36 (02) :958-998
[9]   Corporate boards, audit committees and voluntary disclosure: Evidence from Italian Listed Companies [J].
Allegrini M. ;
Greco G. .
Journal of Management & Governance, 2013, 17 (1) :187-216
[10]   The board's role in risk disclosure: an exploratory study of Italian listed state-owned enterprises [J].
Allini, Alessandra ;
Rossi, Francesca Manes ;
Hussainey, Khaled .
PUBLIC MONEY & MANAGEMENT, 2016, 36 (02) :113-120