Risk Disclosures on the Second Tier Markets of the London Stock Exchange

28 Pages Posted: 24 Nov 2009

See all articles by Paula Hill

Paula Hill

University of Bristol

Helen Short

University of Leeds - Division of Accounting and Finance

Abstract

The identification, management and disclosure of risks have been the subject of recent legislation, directives and reporting standards issued across a number of international jurisdictions. To inform the disclosure debate, this paper provides a detailed analysis of the risk warning disclosures of initial public offering (IPO) companies and the factors that drive such disclosures. We find that risk disclosures of IPO companies contain a greater proportion of forward-looking information but a lower proportion of information on internal controls and risk management than the disclosures of listed companies. We find evidence that such disclosure has increased across time but that larger directors’ shareholdings are associated with a reduction in risk disclosure.

Suggested Citation

Hill, Paula and Short, Helen, Risk Disclosures on the Second Tier Markets of the London Stock Exchange. Accounting & Finance, Vol. 49, No. 4, pp. 753-780, December 2009, Available at SSRN: https://ssrn.com/abstract=1512865 or http://dx.doi.org/10.1111/j.1467-629X.2009.00308.x

Paula Hill (Contact Author)

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, BS8 ITH
United Kingdom

Helen Short

University of Leeds - Division of Accounting and Finance ( email )

Leeds LS2 9JT
United Kingdom

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