IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v63y2024ics1544612324003143.html
   My bibliography  Save this article

Delegation of management authority and the level of corporate risk disclosure

Author

Listed:
  • Sun, Shuangcheng
  • Xiao, Xiaoyan

Abstract

This study reveals that delegating more power to management tends to decrease corporate risk information disclosure. The detrimental effects of this power delegation are especially significant in companies within less marketized regions and those distanced from regulatory supervision. These findings highlight the critical role of external regulators in cultivating a robust market and legal framework. Such an environment is key to developing effective corporate charter systems that can restrain management's self-interest and ensure more transparent risk disclosure.

Suggested Citation

  • Sun, Shuangcheng & Xiao, Xiaoyan, 2024. "Delegation of management authority and the level of corporate risk disclosure," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003143
    DOI: 10.1016/j.frl.2024.105284
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324003143
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.105284?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shabir, Mohsin & Jiang, Ping & Shahab, Yasir & Wang, Peng, 2023. "Geopolitical, economic uncertainty and bank risk: Do CEO power and board strength matter?," International Review of Financial Analysis, Elsevier, vol. 87(C).
    2. Kaouthar Lajili, 2009. "Corporate Risk Disclosure and Corporate Governance," JRFM, MDPI, vol. 2(1), pages 1-24, December.
    3. Bingler, Julia Anna & Kraus, Mathias & Leippold, Markus & Webersinke, Nicolas, 2022. "Cheap talk and cherry-picking: What ClimateBert has to say on corporate climate risk disclosures," Finance Research Letters, Elsevier, vol. 47(PB).
    4. Ibrahim, Awad Elsayed Awad & Hussainey, Khaled & Nawaz, Tasawar & Ntim, Collins & Elamer, Ahmed, 2022. "A systematic literature review on risk disclosure research: State-of-the-art and future research agenda," International Review of Financial Analysis, Elsevier, vol. 82(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Danisman, Gamze Ozturk & Tarazi, Amine, 2024. "Economic policy uncertainty and bank stability: Size, capital, and liquidity matter," The Quarterly Review of Economics and Finance, Elsevier, vol. 93(C), pages 102-118.
    2. Bingler, Julia Anna & Kraus, Mathias & Leippold, Markus & Webersinke, Nicolas, 2024. "How cheap talk in climate disclosures relates to climate initiatives, corporate emissions, and reputation risk," Journal of Banking & Finance, Elsevier, vol. 164(C).
    3. Songling Yang & Muhammad Ishtiaq & Muhammad Anwar, 2018. "Enterprise Risk Management Practices and Firm Performance, the Mediating Role of Competitive Advantage and the Moderating Role of Financial Literacy," JRFM, MDPI, vol. 11(3), pages 1-17, June.
    4. Hastreiter, Nikolaus, 2024. "Can investor coalitions drive corporate climate action?," LSE Research Online Documents on Economics 125852, London School of Economics and Political Science, LSE Library.
    5. Cristina Raluca Gh. Popescu, 2019. "Corporate Social Responsibility, Corporate Governance and Business Performance: Limits and Challenges Imposed by the Implementation of Directive 2013/34/EU in Romania," Sustainability, MDPI, vol. 11(19), pages 1-31, September.
    6. Erli Dan & Jianfei Shen & Yiwei Guo, 2023. "Corporate Sustainable Growth, Carbon Performance, and Voluntary Carbon Information Disclosure: New Panel Data Evidence for Chinese Listed Companies," Sustainability, MDPI, vol. 15(5), pages 1-27, March.
    7. Alam, Ahmed W. & Farjana, Ashupta & Houston, Reza, 2024. "Geopolitical risk, CEO power, and corporate lobbying: Do powerful CEOs lobby more?," Finance Research Letters, Elsevier, vol. 62(PA).
    8. Tobias Schimanski & Chiara Colesanti Senni & Glen Gostlow & Jingwei Ni & Tingyu Yu & Markus Leippold, 2023. "Exploring Nature: Datasets and Models for Analyzing Nature-Related Disclosures," Papers 2312.17337, arXiv.org.
    9. Abdallah, Abed Al-Nasser & Hassan, Mostafa Kamal & McClelland, Patrick L., 2015. "Islamic financial institutions, corporate governance, and corporate risk disclosure in Gulf Cooperation Council countries," Journal of Multinational Financial Management, Elsevier, vol. 31(C), pages 63-82.
    10. Mies, Michael, 2024. "Empirical research on banks' risk disclosure: Systematic literature review, bibliometric analysis and future research agenda," International Review of Financial Analysis, Elsevier, vol. 95(PA).
    11. Sanjukta Brahma & Fotini Economou, 2024. "CEO power and corporate strategies: a review of the literature," Review of Quantitative Finance and Accounting, Springer, vol. 62(3), pages 1069-1143, April.
    12. Khandelwal, Chandni & Kumar, Satish & Tripathi, Vibha & Madhavan, Vinodh, 2023. "Joint impact of corporate governance and risk disclosures on firm value: Evidence from emerging markets," Research in International Business and Finance, Elsevier, vol. 66(C).
    13. Schimanski, Tobias & Reding, Andrin & Reding, Nico & Bingler, Julia & Kraus, Mathias & Leippold, Markus, 2024. "Bridging the gap in ESG measurement: Using NLP to quantify environmental, social, and governance communication," Finance Research Letters, Elsevier, vol. 61(C).
    14. Sawsan Halbouni & Asifa Yasin, 2016. "Risk Disclosure: Empirical Investigation of UAE Companies’ Compliance with International Accounting Standards," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(8), pages 134-134, July.
    15. Alexandra Sadler & Nicola Ranger & Sam Fankhauser & Fulvia Marotta & Brian O’Callaghan, 2024. "The impact of COVID-19 fiscal spending on climate change adaptation and resilience," Nature Sustainability, Nature, vol. 7(3), pages 270-281, March.
    16. Apostolakis, George N. & Giannellis, Nikolaos, 2024. "Monetary policy and uncertainty spillovers: Evidence from a wavelet and frequency connectedness analysis," International Review of Financial Analysis, Elsevier, vol. 95(PC).
    17. Chandni Khandelwal & Satish Kumar & Riya Sureka, 2022. "Mapping the intellectual structure of corporate risk reporting research: a bibliometric analysis," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 19(2), pages 129-143, June.
    18. Duncombe, Samuel & Park, Min & Tarsalewska, Monika & Trojanowski, Grzegorz, 2023. "ESG positioning in private infrastructure fundraising," International Review of Financial Analysis, Elsevier, vol. 90(C).
    19. Zacharias Sautner & Laurence Van Lent & Grigory Vilkov & Ruishen Zhang, 2023. "Firm‐Level Climate Change Exposure," Journal of Finance, American Finance Association, vol. 78(3), pages 1449-1498, June.
    20. Wei Cai & Yue Chen & Shiva Rajgopal & Li Azinovic-Yang, 2024. "Diversity targets," Review of Accounting Studies, Springer, vol. 29(3), pages 2157-2208, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.