University of Twente Student Theses

Login

Contrasting mandatory and voluntary disclosure environments: quantity of risk disclosure in the US and the UK

Panten, Keanu (2022) Contrasting mandatory and voluntary disclosure environments: quantity of risk disclosure in the US and the UK.

[img] PDF
457kB
Abstract:This paper investigates the impact of regulatory disclosure framework on quantity of risk disclosure in the annual report narratives of USA and UK non-financial companies. The USA was chosen to represent a mandatory disclosure environment, because the annual reports are filed within the structure of form 10-K, prescribed by the SEC. The UK represents a voluntary environment, where each company may use a different structure for their annual reports and institutions like ICAEW and IASB give recommendations on how to disclose company risk information while not mandating any specific reporting structure. The research explores, in which country the quantity of risk disclosure, measured by counting the number of words related to risk, is higher. The companies were chosen from the UK FTSE 100 and S&P 500. 50 companies with the highest market share were chosen from each of the stock exchanges. Financial companies were excluded because different regulations apply for them. It is found that UK sample reports provided a significantly higher disclosure quantity than US sample risk reports.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Keywords:Risk disclosure, Mandatory, Voluntary, Disclosure environment, Annual report, UK, USA, SEC, ICAEW
Link to this item:https://purl.utwente.nl/essays/90986
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page