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Exploring Financial Risks from Corporate Disclosure: Evidence from Italian Listed Companies

Author

Listed:
  • Rosa Lombardi

    (Link Campus University)

  • Daniela Coluccia

    (University of Rome “La Sapienza”)

  • Giuseppe Russo

    (University of Cassino and Southern Lazio)

  • Silvia Solimene

    (University of Rome “La Sapienza”)

Abstract

The purpose of this paper is to contribute to the existing literature on corporate disclosure by exploring the quality of information on financial risks contained in the annual reports of a sample of non-financial companies listed on the Italian Stock Exchange. The analysis is based on a manual content analysis approach, used to measure the level of financial risk information presented in the annual reports of 50 companies and build a Grid Risk Report. The findings of this paper show the degree of financial risk disclosure, as well as what companies actually disclose in terms of financial risk indices in their Management Reports (in the section covering information on risks and uncertainties), in their Notes to the Financial Statements (in the section on risk management) and, possibly, in their Notes on the Financial Instruments, they hold for to cover risk, for the period between 2008 and 2013. The paper’s findings have practical implications for both stakeholders and managers, giving investors facts about the sort of Italian companies that disclose financial risk information as part of the risk information presented in their annual reports and managers information about the degree of financial risk disclosure that will satisfy their stakeholder disclosure demands.

Suggested Citation

  • Rosa Lombardi & Daniela Coluccia & Giuseppe Russo & Silvia Solimene, 2016. "Exploring Financial Risks from Corporate Disclosure: Evidence from Italian Listed Companies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(1), pages 309-327, March.
    • Handle: RePEc:spr:jknowl:v:7:y:2016:i:1:d:10.1007_s13132-015-0329-5
    DOI: 10.1007/s13132-015-0329-5
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    2. Ripon Kumar Dey & Syed Zabid Hossain & Zabihollah Rezaee, 2018. "Financial Risk Disclosure and Financial Attributes among Publicly Traded Manufacturing Companies: Evidence from Bangladesh," JRFM, MDPI, vol. 11(3), pages 1-16, August.
    3. Johnson Kolawole OLOWOOKERE & Bolarinwa R. FERUKE, 2021. "Value Relevance Of Risk Management Disclosure Among Listed Deposit Money Banks In Nigeria," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 11(4), pages 64-79, December.
    4. Ahmadi Ali & Bouri Abdelfettah, 2019. "Financial Disclosure Information, Board of Directors, and Firm Characteristics among French CAC 40 Listed Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(3), pages 941-957, September.
    5. Domitilla Magni & Ottorino Morresi & Alberto Pezzi & Domenico Graziano, 2022. "Defining the Relationship Between Firm’s Performance and Delisting: Empirical Evidence of Going Private in Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2584-2605, September.
    6. Ali Ahmadi & Abdelfettah Bouri, 2019. "The Effect of Audit Quality on the Extent of Voluntary Disclosure: Companies Listed in the Tunisian Stock Exchange," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 59-73, March.

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