Analysis of risk disclosure in Spanish firms

Abstract

Despite the advantages of reporting on business risks and the existence of a growing demand for information, risk reporting within firms is still reduced. The present work describes briefly the main aspects related to the problematic of risk reporting and analyses the relation between corporate variables and risks disclosed by firms. Information on risks has been collected from the annual reports of 27 Spanish firms for the years 2009 and 2010. After different regression analysis to contrast hypothesis stated before, significant relations have been found out between risks disclosure and corporate variables such as profitability or level of risk.