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International Journal of Academic Research in Accounting, Finance and Management Sciences

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ISSN: 2225-8329

The Impact of Board Diversity on Risk Disclosure: Conceptual Paper

Mukhled Olimat, Nahariah Jaffar, Saidatunur Fauzi Saidin, Saddam Al-Nohood

http://dx.doi.org/10.6007/IJARAFMS/v15-i2/25095

Open access

Risk disclosure is a significant concern for most stakeholders; therefore, board diversity may be crucial in improving the quality of risk disclosure. Prior research has investigated the influence of a singular or a restricted set of aspects of board diversity on risk disclosure. The present study establishes a theoretical framework that facilitates future empirical research aimed at creating a composite measure of board diversity to assess its influence on risk disclosure. Creating a composite measure yields a more precise representation than an individual measure, as boards are perceived as an interconnected system rather than as discrete components. The current study proposes to construct a composite measure of board diversity, consisting of gender, foreign directors, political directors, overlapping membership, and multiple directorships.

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Olimat, M., Jaffar, N., Saidin, S. F., & Al-Nohood, S. (2025). The Impact of Board Diversity on Risk Disclosure: Conceptual Paper. International Journal of Academic Research in Accounting, Finance and Management Sciences, 15(2), 25–40.