Risk Reporting in Financial Crises: A Tale of Two Countries

International Journal of Accounting & Information Management, Vol. 29 No. 2, 2021, pp. 181-216. https://doi.org/10.1108/IJAIM-03-2020-0034

Posted: 11 May 2021

See all articles by Kaouthar Lajili

Kaouthar Lajili

University of Ottawa - Faculty of Administration

Michael Dobler

Dresden University of Technology - Faculty of Economics and Business Management

Daniel Zeghal

University of Ottawa - Faculty of Administration

Mitchell J. Bryan

affiliation not provided to SSRN

Date Written: May 11, 2021

Abstract

Purpose – This paper aims to investigate the attributes and information content of risk reporting in two different institutional and regulatory, namely, Canadian and German, settings during the period surrounding the financial crisis of 2008.

Design/methodology/approach – For a matched sample of manufacturing firms in the period 2006–2010, this study conducts a detailed content analysis of annual reports to assess and compare the volume and patterns of risk disclosures. Panel regressions are used to explore how risk disclosures related to corporate risk proxies and performance indicators.

Findings – Over the sample period, Canadian and German firms increase the volume but largely maintain the patterns of risk disclosures. Risk disclosures relate to corporate risk proxies but are not incrementally informative to assess firm performance.

Originality/value – The paper contributes to research on risk reporting by providing detailed cross-country evidence for a period particularly shaped by significant risk. The findings have implications for the regulation and usefulness of risk reporting.

Keywords: Risk management, Operational risk, Risk disclosure, Non-financial risk, Information content, Manufacturing sector

JEL Classification: G01, M41

Suggested Citation

Lajili, Kaouthar and Dobler, Michael and Zeghal, Daniel and Bryan, Mitchell J., Risk Reporting in Financial Crises: A Tale of Two Countries (May 11, 2021). International Journal of Accounting & Information Management, Vol. 29 No. 2, 2021, pp. 181-216. https://doi.org/10.1108/IJAIM-03-2020-0034, Available at SSRN: https://ssrn.com/abstract=3843531

Kaouthar Lajili

University of Ottawa - Faculty of Administration ( email )

136 Jean-Jacques Lussier
Ottawa, Ontario K1N 6N5
Canada
613-562-5800, ext. 4736 (Phone)
613-562-5164 (Fax)

Michael Dobler (Contact Author)

Dresden University of Technology - Faculty of Economics and Business Management ( email )

Helmhotzstr. 10
Dresden, D-01062
Germany

HOME PAGE: http://tu-dresden.de/bu/wirtschaft/wus

Daniel Zeghal

University of Ottawa - Faculty of Administration ( email )

136 Jean-Jacques Lussier
Ottawa, Ontario K1N 6N5
Canada
613-562-5800, ext. 4769 (Phone)
613-562-5164 (Fax)

Mitchell J. Bryan

affiliation not provided to SSRN

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