Risk information of corporate governance

Abstract

The disclosure of risk-related information is of great importance in today’s highly uncertain environment. Furthermore, it is evident that there is a need for both relevant and high-quality information. It has become clear that this information is essential for both the making of important decisions as well as the ability to create accurate forecasts. Studies that have been performed on the disclosure of risk information that has been Spanish companies’ show that a high percentage of the analysed companies are reporting on some sort of risk, additionally we can clearly see that the reported risks are pre-dominantly non-financial risks. The results that we have obtained with this study have shown that the variables of corporate governance and the variables of control that we have analysed are not significantly related to the disclosure of risk information. Furthermore, the three evaluated hypotheses show that the variables related to corporate governance, such as board size, board independence, and the percentage of capital held by the board do not significantly affect the disclosure of risks by the Spanish companies that we have analysed in this study.