ISSN: 2225-8329
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This paper measures the extent of corporate risk disclosure and the relationship of a set of firms characteristics (firm size, type of sector, leverage, profitability, and liquidity) on the level of risk disclosure in Jordan. The measurement of risk disclosure is based on published data of sampled Jordanian firms listed on Amman Stock Exchange using the content analysis approach. The findings indicate that large firms, industrial firms, and firms with a high level of leverage and profitability disclose more risk information than others do. However, the rate of liquidity showed a negative effect on the level of risk disclosure. The findings of this study also enhance the understanding of the corporate risk disclosure environment in Jordan as an example of the emerging markets in the Middle East. The study contributes to disclosure studies by being the first study to explore the relationship between the risk disclosure level and firm characteristics in Jordan. In addition, this study provides clear insight into the determinants of risk disclosure to the stakeholders of the Jordanian companies.
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In-Text Citation: (Alshirah, Abdul Rahman, and Mustapa, 2020)
To Cite this Article: Alshirah, M. H., Abdul Rahman, A., and Mustapa, I. R. (2020). The Effect of Firms Characteristics on Corporate Risk Disclosure: Empirical Evidence from Amman Stock Exchange. International Journal of Academic Research in Accounting, Finance and Management Sciences. 10(3), 336-348.
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