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Risk reporting during a crisis: evidence from the Egyptian capital market

Mahmoud Marzouk (The York Management School, Accounting and Finance Group, University of York, York, UK)

Journal of Applied Accounting Research

ISSN: 0967-5426

Article publication date: 14 November 2016

1496

Abstract

Purpose

The purpose of this paper is to examine corporate risk disclosure (CRD) practices and determinants in the annual reports of Egyptian listed companies during the 2011 political crisis (uprising) in Egypt.

Design/methodology/approach

Content analysis of the annual reports of a sample of non-financial listed companies representing different industry sectors was conducted to investigate attributes and factors underlying their risk disclosures.

Findings

The findings demonstrate that companies disclosed more monetary, future and good risk information. The results show a positive and significant relationship between company size and the level of CRD, a positive but insignificant relationship between the extent of CRD and some company-specific characteristics: industry type, profitability and cross-listing, and a negative and insignificant relationship between corporate reserves and the level of CRD.

Research limitations/implications

A larger sample size would be needed for greater generalization of the findings. This study extends the literature on CRD by examining CRD practices at a time of current and ongoing crisis. However, more research is needed to examine variations in CRD practices before and after the 2011 political crisis.

Practical implications

The results could be used by information users, companies and the capital market authority to inform policy-making and tighten regulations to improve CRD. Recommendations are made for improving the quality and informativeness of risk information.

Originality/value

It is important to investigate CRD practices, considering the dearth of research, particularly in emerging capital markets and during crises, when companies are exposed to more, especially uncontrollable, risks. This study fills a void in literature by examining CRD practices during the 2011 political crisis in Egypt.

Keywords

Citation

Marzouk, M. (2016), "Risk reporting during a crisis: evidence from the Egyptian capital market", Journal of Applied Accounting Research, Vol. 17 No. 4, pp. 378-396. https://doi.org/10.1108/JAAR-02-2015-0012

Publisher

:

Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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