An Investigation of the Impact of Corporate Governance Mechanisms on Level of Corporate Risk Disclosure: Evidence from Kuwait

Bader Al-Shammari

Abstract


This study investigated the association between corporate governance mechanisms and corporate risk disclosure (CRD) in the annual reports for a sample of 109 Kuwaiti listed non-financial companies in 2012. The study used a manual content analysis to measure risk disclosure by counting the number of risk-related sentences in annual reports. A multiple regression analysis was used to test the impact of board size, non-executive directors, percentage of family members on board, role duality, and audit committee on CRD. The quantity of risk disclosures in the Kuwaiti companies' annual reports was very limited. The results showed that the larger board size has a positive impact on CRD. However, the findings also indicated the existence of role duality lead to lower risk disclosure. Other corporate governance mechanisms did not explain variation in CRD.


Keywords


corporate governance, risk disclosure, content analysis, Kuwait

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References


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DOI: http://dx.doi.org/10.18533/ijbsr.v4i6.491

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International journal of business and social research (Print)
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[International Journal of Business and Social Research (IJBSR) previously published by MIR Center for Socio-Economic Research, MD, USA. From February 2018 this journal is published by the LAR Center Press, OR, USA]