The readability and narrative tone of risk and risk management disclosures for South African listed companies

IF 3.2 Q1 BUSINESS, FINANCE Journal of Accounting in Emerging Economies Pub Date : 2023-10-13 DOI:10.1108/jaee-09-2022-0276
Zack Enslin, Elda du Toit, Mangwakong Faith Puane
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Abstract

Purpose Risk information provides information to enable stakeholders to make informed decisions about a company. Corporate communications should be readable and unbiased so as not to hamper disclosure usefulness. This study assesses whether risk disclosures in the integrated reports are readable and unbiased. Design/methodology/approach The readability and narrative tone of South African listed companies' risk and risk management disclosures as disclosed in their integrated reports are analysed using automated software for the Top 40 JSE listed companies from 2015 to 2019. Findings The results show that risk and risk management disclosures are unreadable and lack any improvement in readability during the period. Additionally, these disclosures are biased toward narrative tones signalling communality and certainty. Originality/value The study adds to the literature on the readability of corporate reports, by focussing on the readability and narrative tone of risk and risk management disclosures during a period of increased scrutiny over the content of such disclosures. Also, by analysing risk disclosure and risk management disclosure separately, and by performing trend analysis to determine whether requirement changes related to content (specifically King IV) affect readability and narrative tones.
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南非上市公司风险与风险管理披露的可读性与叙事基调
目的风险信息提供信息,使利益相关者能够对公司做出明智的决策。公司沟通应该是可读的和公正的,以免妨碍披露的有用性。本研究评估综合报告中的风险披露是否可读和公正。设计/方法/方法使用自动化软件分析2015年至2019年南非上市公司综合报告中披露的风险和风险管理披露的可读性和叙事基调。结果表明,风险和风险管理信息披露难以阅读,且在此期间缺乏可读性的改善。此外,这些披露倾向于表明共同性和确定性的叙事语气。独创性/价值本研究增加了关于公司报告可读性的文献,重点关注风险和风险管理披露的可读性和叙述基调,同时加强了对这些披露内容的审查。同样,通过分别分析风险披露和风险管理披露,并通过执行趋势分析来确定与内容(特别是King IV)相关的需求变化是否会影响可读性和叙述基调。
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来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
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