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Do narrative-related disclosures in annual reports influence corporate risk-taking? Insights from an emerging economy

Author

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  • Vu, Lien Phuong Thi
  • Mai, Anh Ngoc
  • Nguyen, Thai Hoang
  • Nguyen, Tuan Hoang
  • Nguyen, Thuy Thanh
  • Bui, Quyen To

Abstract

Utilizing a firm-level panel dataset spanning 2012 to 2023 and applying microeconometric techniques, this study provides novel insights into how narrative-related disclosures in annual reports influence corporate risk-taking in Vietnam. The analysis reveals that neither the extent of forward-looking statements nor the complexity of annual reports has a statistically significant relationship with firm risk. In contrast, a more optimistic tone in disclosures is associated with lower levels of risk-taking. Additionally, CEO characteristics, particularly gender and educational background, play a significant role in shaping risk behavior through their effects on disclosure practices and regulatory engagement. These findings highlight the critical importance of educational attainment in executive selection, given its observable influence on corporate risk-taking outcomes.

Suggested Citation

  • Vu, Lien Phuong Thi & Mai, Anh Ngoc & Nguyen, Thai Hoang & Nguyen, Tuan Hoang & Nguyen, Thuy Thanh & Bui, Quyen To, 2025. "Do narrative-related disclosures in annual reports influence corporate risk-taking? Insights from an emerging economy," International Review of Economics & Finance, Elsevier, vol. 103(C).
    • Handle: RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025006525
    DOI: 10.1016/j.iref.2025.104489
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