Gender Diversity, Corporate Governance and Financial Risk Disclosure in the UK

International Journal of Law and Management, February 2020

27 Pages Posted: 14 May 2020

See all articles by Idris Bufarwa

Idris Bufarwa

University of Benghazi

Ahmed A. Elamer

Brunel University London - Brunel Business School; Department of Accounting, Faculty of Commerce, Mansoura University

Collins G. Ntim

University of Southampton Business School, UK; University of Southampton

Date Written: 2020

Abstract

Purpose – This study investigates the impact of corporate governance mechanisms on financial risk reporting in the UK.

Design/methodology/approach – The study uses a panel data of 50 non-financial firms belonging to ten industrial sectors listed on the London Stock Exchange in the period 2011-2015. Multivariate regression techniques are used to examine the relationships. Additionally, to alleviate the concern of potential endogeneity, we use two-stage least squares and fixed effect estimators.

Findings – The findings of this study reveal that corporate governance has a significant influence on financial risk disclosure. Specifically, we find that block ownership and board gender diversity have a positive effect on the level of corporate financial risk disclosure. While, there is no significant relationship between board size and corporate financial risk disclosure.

Originality/value – This study adds to the emerging body of literature on corporate governance–risk disclosure relationship in UK context using content analysis.

The study also highlights that gender diversity enhances financial risk disclosure.

Keywords: Financial Risk Disclosure, Block Ownership, Gender Diversity, Board Size, Corporate Governance

JEL Classification: G21, G32, G34, G38, M48

Suggested Citation

Bufarwa, Idris and Elamer, Ahmed Ahmed and Ntim, Collins G., Gender Diversity, Corporate Governance and Financial Risk Disclosure in the UK (2020). International Journal of Law and Management, February 2020, Available at SSRN: https://ssrn.com/abstract=3580213 or http://dx.doi.org/10.2139/ssrn.3580213

Idris Bufarwa

University of Benghazi ( email )

Libya

Ahmed Ahmed Elamer (Contact Author)

Brunel University London - Brunel Business School ( email )

Kingston Lane
Eastern Gateway Building
Uxbridge, Middlesex UB8 3PH
United Kingdom

Department of Accounting, Faculty of Commerce, Mansoura University ( email )

Faculty of Commerce, Mansoura University
Elgomhouria St.
Mansoura, Mansoura 35516
Egypt

Collins G. Ntim

University of Southampton Business School, UK ( email )

Southampton Business School
Highfield
Southampton, England SO17 IBJ
United Kingdom
+44 (0) 238059 4285 (Phone)
+44 (0) 238059 3844 (Fax)

HOME PAGE: http://www.southampton.ac.uk/business-school/about/staff/cgn1n11.page

University of Southampton ( email )

Southampton, SO17 1BJ
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
88
Abstract Views
585
rank
323,048
PlumX Metrics