oa Journal of Economic and Financial Sciences - Enhancing risk-related disclosure in South Africa : a study on guidelines and current practices
|Article Title||Enhancing risk-related disclosure in South Africa : a study on guidelines and current practices|
|© Publisher:||University of Johannesburg|
|Journal||Journal of Economic and Financial Sciences|
|Affiliations||1 Stellenbosch University, 2 Stellenbosch University and 3 Stellenbosch University|
|Publication Date||Apr 2015|
|Pages||261 - 280|
|Keyword(s)||Current practices, Disclosure index, Risk disclosure, Risk identification and Risk management|
Investors partake in the risk of a company, in expectation of a return on investment which is in accordance with the company's risk profile. Due to recent corporate failures, which are partly attributable to insufficient risk management, a call by investors for enhanced risk-related disclosure resulted in the publication of various international standards and guidelines on best practices for risk disclosure. This study compiled a disclosure index from these standards and guidelines in order to serve as a disclosure-enhancing tool for the management of South African companies. This index was subsequently used to investigate current practices exhibited by top listed companies in South Africa. Disclosure practices by these companies indicate that there is scope for improvement in risk- and risk-management-related disclosure by these companies.
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