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Drivers of Corporate Risk Disclosure in Indian Non-financial Companies: A Longitudinal Approach

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  • Ridhima Saggar
  • Balwinder Singh

Abstract

The present study aims to identify the drivers of corporate risk disclosure in the Indian listed non-financial companies over a period of 6 years. A sample of 318 companies from Business Today’s list of top 500 companies has been analyzed using Panel data regression. Multiple theoretical perspectives have been employed such as agency, signaling, stakeholders and political cost theories in explaining the drivers of corporate risk disclosure. The findings provide crucial understanding for the investors, lenders and other prime stakeholders of key drivers of risk disclosure which will assist in the investment decision. The results conclude that corporate governance in the form of large boards, gender diversity in the boardrooms and independent directors on boards are positive drivers of risk information, whereas CEO duality restricts such information which is alarming. Larger, less profitable, low liquid and firms reporting more risk information in the past divulge more information on risk confronted by them. Analogously, the study widens the knowledge in the Indian context which possesses a lot of potentials to attract international investors who are in search of information to demarcate strongly managed companies than their counterparts.

Suggested Citation

  • Ridhima Saggar & Balwinder Singh, 2019. "Drivers of Corporate Risk Disclosure in Indian Non-financial Companies: A Longitudinal Approach," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 44(3), pages 303-325, August.
    • Handle: RePEc:sae:manlab:v:44:y:2019:i:3:p:303-325
    DOI: 10.1177/0258042X19851918
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    2. Khandelwal, Chandni & Kumar, Satish & Madhavan, Vinodh & Pandey, Nitesh, 2020. "Do board characteristics impact corporate risk disclosures? The Indian experience," Journal of Business Research, Elsevier, vol. 121(C), pages 103-111.
    3. Ritika Gupta & Jacqueline Symss, 2023. "Does Corporate Governance Impact Risk Disclosure? An Empirical Analysis in the Indian Context," Indian Journal of Corporate Governance, , vol. 16(1), pages 9-27, June.

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