Linking Corporate Risk Disclosure Practices with Firm-Specific Characteristics in Saudi Arabia

Norsiah  Ahmad; Omer Saeed  Habtoor; Nor Raihan  Mohamad; Mohd Hassan Che  Haat

Norsiah Ahmad Universiti Sultan Zainal Abidin
Omer Saeed Habtoor Northern Border University
Nor Raihan Mohamad Universiti Malaysia Terengganu
Mohd Hassan Che Haat Universiti Malaysia Terengganu

Keywords: Corporate Risk Disclosure, Annual Reports, Firm-specific Characteristics, Saudi Arabia

Abstract

This study explores Corporate Risk Disclosure practices (CRD) in the annual reports of Saudi (non-financial) listed companies and investigates the relationship between the Saudi firm-specific characteristics and the level of such practices. Using content analysis of a sample of 307 company-year observations over the period of 2008-2011, the results indicate that Saudi Arabia provides a moderate level of CRD among the developed and developing countries. However, the content of this CRD is found to be of a low quality, by including non-financial, qualitative, neutral, or non-time-specific information. In addition, the unbalanced panel regression analysis shows a significant positive influence of firm size and audit firm size on the level of CRD. This indicates that Saudi companies which disclose higher risk-related information are those characterised by their larger size, and are audited by the Big 4 audit firms. This study contributes to the risk literature by providing an initial understanding of the CRD practices and their variations in light of the firm-specific characteristics in emerging markets in general and Arab countries in particular.

Author Biographies

Norsiah Ahmad, Universiti Sultan Zainal Abidin

AHMAD, Norsiah, is a Professor at Faculty of Economics and Management Sciences, Universiti Sultan Zainal Abidin, Terengganu, Malaysia. She earned her Ph.D. (2006) in Taxation and Accounting from Universiti Utara Malaysia; and her MBA (1989) from Mississippi State University. She has published many articles in international journals.
Contact details: Faculty of Economics and Management Sciences Universiti Sultan Zainal Abidin, Terengganu, Malaysia; phone: +609-6688221; e-mail: norsiah@unisza.edu.my.

Omer Saeed Habtoor, Northern Border University

HABTOOR, Omer Saeed Ahmed, is the Head of Department of Administrative Sciences, Community College, Northern Border University, Kingdom of Saudi Arabia. He earned his Ph.D. (2015) in Accounting from University Malaysia Terengganu (UMT), Malaysia; and his Master Degree ( 2008) in Avvounting from Eden University, Yemen.
Contact details: Community College, Northern Border University, Kingdom of Saudi Arabia; phone: 00966552667691; e-mail: omer.habtoor@ nbu.edu.sa.

Nor Raihan Mohamad, Universiti Malaysia Terengganu

MOHAMMAD, Nor Raihan, is a lecturer in Auditing and Environmental Accounting at the School of Maritime Business and Management, Universiti Malaysia Terengganu. She earned her Ph.D. (2012) in Accounting from Universiti Malaysia Terengganu, Kuala Terengganu, Terengganu; and her M.Sc. (2002) in Accounting from Universiti Putra Malaysia, Serdang, Selangor. She has published several articles in journals, such as Corporate Ownership and Control and Journal of Environment and Ecology.
Contact details: School of Maritime Business and Management, Univesiti Malaysia Terengganu (UMT), 21030 Kuala Terengganu; phone: 6013-920 4100 / 609-668 3776; e-mail: raihan@umt.edu.my.

Mohd Hassan Che Haat, Universiti Malaysia Terengganu

CHE HAAT, Mohd Hassan, is an Associate Professor at School of Maritime Business and Management, Universiti Malaysia Terengganu. He earned his Ph.D. (2006) in Accounting, Universiti Teknologi MARA (UiTM), Malaysia; and his M.Acc. (2002) from the same university. He has published several publications in peer reviewed national (Malaysia) and international; and he has several publication in conference proceedings.
Contact details: School of Maritime Business and Management, Universiti Malaysia Terengganu, 21030 Kuala Nerus, Terengganu; phone: +609-6683524, mobile phone: +6012-2899420; e-mail: hassan@umt.edu.my / drhassanch@ yahoo.com.

References

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