Voluntary Risk Reporting in Annual Reports - Case Study of the Practices of Polish Public Companies

• Autorzy: Monika Wieczorek-Kosmala , Joanna Błach , Maria Gorczyńska
• Języki publikacji: EN

Abstrakty

EN

Grounded on literature review on risk disclosures and risk reporting practices, the paper aims to explore the extent and content of voluntary risk reporting practices of non-financial companies. Annual reports, focusing on several areas of concern of sampled public companies from three different sectors were subject to content analysis combined with morphology analysis. The results show that the extent of risk disclosure within non-flnancial risk exposure is broad and not connected with the sector, which is similar to findings within the cohesion of reported risk exposure with those provided in the so-called "top 10 risk" rankings. However, disclosures concerning risk management practices visibly differ among the analysed sectors. The paper contributes to the existing debate on the need and practice of risk reporting by providing insight into practices of non-financial companies operating in Poland as an emerging economy. (original abstract)

Słowa kluczowe

EN

Risk management; Annual report of the company; Public sector enterprise; Enterprise risk; Public companies

PL

Zarządzanie ryzykiem; Raport roczny przedsiębiorstwa; Przedsiębiorstwo sektora publicznego; Ryzyko w przedsiębiorstwie; Spółki publiczne

• Czasopismo: e-Finanse
• Rocznik: 2014
• Tom: 10
• Numer: nr 4
• Strony: 46--59

Twórcy

autor

Monika Wieczorek-Kosmala

• University of Economics in Katowice, Poland

autor

Joanna Błach

• University of Economics in Katowice, Poland

autor

Maria Gorczyńska

• University of Economics in Katowice, Poland

Bibliografia

• Abraham, S., Cox, P. (2007). Analysing the Determinants of Narrative Risk Information in UK FTSE100 Annual Reports. The British Accounting Review, 39, 227-248.
• Accounting Act (1994). Ustawa z dnia 29 września 1994 roku o rachunkowości, Dz.U. 1994, nr 121, poz. 591. Allianz, (2014). Allianz Risk Barometer on Business Risks.
• Retrieved from http://www.agcs.allianz.com/assets/PDFs/Reports/Allianz-Risk-Barometer-2014_EN.pdf. AON, (2013). Aon Global Risk Survey. Retrieved from
• http://www.aon.com/2013GlobalRisk/2013-Global-Risk-Management-Survey-updated-05-01- 2013.pdf.
• Atan, R., Maruhun, E., Kadir, W., Jusoff, K. (2010). Annual Risk Reporting of Listed Companies in Malaysia. Journal of Modern Accounting and Auditing, 6 (8), (serial no. 63), 26-36.
• Beattie, V., McInnes, W. , Fearnley, S., (2004a). A Methodology for Analysing and Evaluating Narratives in Annual Reports: a Comprehensive Descriptive Profile and Metrics for Disclosure Quality Attributes. Accounting Forum, 28(3), 205-236.
• Beattie, V., McInnes, M., Fearnley, S. (2004b). Through the Eyes of Management: Narrative Reporting Across Three Sectors. Final Report. London: ICAeW Center for Business Performance.
• Beretta, S., Bozzolan, S. (2004). A Framework for the Analysis of Firm Risk Communication. The International Journal of Accounting, 39 (3), 265-288.
• Bowman, E.H. (1984). Content Analysis of Annual Reports for Corporate Strategy and Risk. Strategic Management, 14(1), 61- 71.
• Cabedo, J.D., Tirado, J.M. (2004). The Disclosure of Risks in Financial Statements. Accounting Forum, 28(1), 181-200. Carlon, S., Loftus, J.F., Miller, M.C. (2003). The Challenge of Risk Reporting: Regulatory and Corporate Responses. Australian Accounting Review, 13(3), 26-51.
• Deumes, R. (2008). Corporate Risk Reporting. A Content Analysis of Narrative Risk Disclosures in Prospectuses. Journal of Business Communication, 45(2), 120- 157.
• Directive 2004/109/EC of the European Parliament and of the Council Of 15 December 2004 on the Harmonization of Transparency Requirements in Relation to Information About Issuers Whose Securities Are Admitted to Trading on Regulated Market and Amending Directive 2001/34/EC. Retrieved from http://www.esma.europa.eu/system/flles/ TD_2004_109_CE_pdf.
• Dietrich, J. R., Kachelmeier, S. J., Kleinmuntz, D. N., Linsmeier, T. J. (2001). Market Efficiency, Bounded Rationality and Supplemental Business Reporting Disclosures. Journal of Accounting Research, 39(2), 213-268. Dobler, M. (2008). Incentives for Risk Reporting - A Discretionary Disclosure and Cheap Talk Approach. The International Journal of Accounting, 43(2), 184-206.
• Everaet, P., Bouten, L., Van Lidekerke, L., De Moor, L., Christiaens, J. (2007). Voluntary Disclosure of Corporate Social Responsibility by Belgian Listed Firms: a Content Analysis of Annual Reports. Working Papers 29, Brussel: Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
• EY (2013). Business Pulse. Exploring dual perspectives on the top 10 risks and opportunities in 2013 and beyond. Global report. EYGM Limited in collaboration with Oxford Analytica. Retrieved from http://www.ey.com/GL/en/ Services/Advisory/Business-Pulse--top-10-risks-and-opportunities
• Fuller, J., Jensen, M. C. (2002). Just Say No to Wall Street. Journal of Applied Corporate Finance, 14(4), 41-46. Graham, A. (2011). Integrated Risk Management. Implementation Guide. Retrieved from: http://post.queensu.ca/~grahama/publications/TEXTPDF.pdf.
• Hackson, D., Milne, M. J. (1996). Some Determinants of Social and Environmental Disclosures in New Zealand Companies. Accounting, Auditing & Accountability Journal, 9(1), 77-108.
• Helliar, C., Dunne, T. (2004). Control of the Treasury Function. Corporate Governance, 4(2), 34- 43.
• Hodder, L., Koonce, L., McAnally, M. L. (2001). SEC Market Risk Disclosures: Implications for Judgment and Decision
• Making. Accounting Horizions, 15(1), 49-70.
• Holsti, O.R. (1969). Content Analysis for the Social Sciences and Humanities. Reading: Addison-Wesley.
• Hsieh, H., Shannon, S. E. (2005). Three Approaches to Qualitative Content Analysis. Qualitative Health Research, 4, 1276-1288.
• Institute of Chartered Accountants in England and Wales [ICAEW], (1998). Financial Reporting of Risk - Proposals for a Statement of Business Risk. London: ICAEW.
• Institute of Chartered Accountants in England and Wales [ICAEW], (1999a). Implementing Turnbull - A Boardroom Briefing. London: ICAEW.
• Institute of Chartered Accountants in England and Wales [ICAEW], (1999b). No surprises: The Case for Better Risk Reporting. London: ICAEW.
• Institute of Chartered Accountants in England and Wales [ICAEW], (2002). Working for Better Risk Reporting. London: ICAEW.
• International Financial Reporting Standards [IFRS], (2011). The Conceptual Framework for Financial Reporting, September.
• Jorion, P. (2002). How Informative Are Value-At-Risk Disclosures? The Accounting Review, 77(4), 911-931.
• Krippendorf, K. (1980). Content Analysis: An Introduction to Its Methodology. Beverly Hills: Sage.
• Linsley, P., Shrives, P. (2005a). Disclosure of Risk Information in the Banking Sector. Journal of Financial Regulation and Compliance, 13(3), 205-214.
• Linsley, P. M., Shrives, P. J. (2005b). Examining Risk Reporting in UK Public Companies. The Journal of Risk Finance, 6(4), 292-305.
• Linsley, P., Shrives, P. (2000). Risk Management and Reporting Risk in the UK. Journal of Risk, 3(1), 115-129.
• Linsley, P. M., Shrives, P. J. (2006). Risk Reporting: a Study of Risk Disclosures in the Annual Reports of UK Companies. The British Accounting Review, 38, 387-404.
• Łukasik, G., Błach, J. (2013). Raportowanie ryzyka jako element prawidłowych relacji inwestorskich. In J.Turyna & J. Rak (Ed.) Finansowe uwarunkowania rozwoju organizacji gospodarczych. Ryzyko w rachunkowości i zarządzaniu finansami (15-33). Warszawa: Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego.
• Manaf, N., Atan, R., Mohamed, N. (2008). Environmentally Sensitive Companies Social Responsibility and Reporting: a Study of Malaysian Companies. Paper presented at The 5th Australasian Conference on Social and Environmental Accounting Research, Victoria University of Wellington, New Zealand.
• Oliveira, J.S. (2011). Essays on Risk Reporting Disclosures by Portuguese Companies (doctoral dissertation). Retrieved from http://repositorium.sdum.uminho.pt/bitstream/1822/19718/1/Jonas%20da%20Silva %20Oliveira.pdf.
• Ritchey, T. (2009). Developing Scenario Laboratories with Computer-Aided Morphological Analysis. Paper presented at the 14th International Command and Control Research and Technology Symposium, Washington, USA. Retrieved from: http://www.dodccrp.org/events/14th _iccrts_2009/papers/003.pdf.
• Schrand, C. M., Elliot, J. A. (1998). Risk and Financial Reporting: a Summary of the Discussion at the 1997 AAA/FASB Conference. Accounting Horizons, 12(3), 271-282.
• Schreier, M. (2012). Qualitative Content Analysis in Practice. London: SAGE Publications.
• Skowron, P. (2013). Informowanie na temat ryzyka w raportach rocznych największych spółek giełdowych notowanych na Giełdzie Papierów Wartościowych w Warszawie. Zarządzanie i Finanse, 4(3), 423-444.
• Solomon, J. F., Solomon, A., Norton, S. D., Joseph, N. L. (2000). A Conceptual Framework for Corporate Risk Disclosure Emerging from the Agenda for Corporate Governance Reform. British Accounting Review, 32(4), 447-478.
• Young, P., Tippins, S. (2001). Managing Business Risk. An Organization-wide Approach to Risk Management. New York: American Management Association.
• Weber, R.P. (1990). Basic Content Analysis. Sage University Paper Series on Quantitative Applications in the Social Sciences, Series No. 07-049.
• Woods, M. (2011). Risk Management in Organisations. An Integrated Case Study Approach. Oxon: Routledge. World Economic Forum, (2014). Global Risk Report 2014. Retrieved from http://media.swissre.com/documents/ Global_Risks_Report_2014.pdf.
• Zain, M. M., Janggu, T. (2006). Corporate Social Disclosure (CSD) of Construction Companies in Malaysia. Malaysian Accounting Review, 5(1), 85-114.