Providing risk disclosure pattern in financial reporting

Subject Areas : Risk Management

Davod Akbari ¹ , Mohammad Mahmoodi ² , Seyed Yousef Ahadi Serkani ³

1 - Department of Accounting, Fi.C., Islamic Azad University, Firouzkooh, Iran.
2 - Department of Accounting, Fi.C., Islamic Azad University, Firouzkooh, Iran.
3 - Department of Accounting, Fi.C., Islamic Azad University, Firouzkooh, Iran.

Received: 2024-08-08 Accepted : 2025-01-25 Published : 2025-09-28

Keywords: Emerging Markets, Financial Reporting, Grounded Theory, Qualitative Research, Risk Disclosure,

Abstract :

Purpose: The present study aims to develop a risk disclosure framework in financial reporting. By integrating qualitative research techniques through a grounded theory approach and document analysis, this study seeks to conceptualize and explain a comprehensive model for risk disclosure in financial reporting.

Research Methodology: This research is categorized as a mixed-method exploratory study and was conducted qualitatively in its implementation stage. The statistical population consisted of experts specializing in finance and accounting. In alignment with the study purpose, a snowball (chain-referral) sampling technique was used to select participants for interviews.

Findings: The findings reveal that the final conceptual categories comprise social and environmental factors, regulatory and legal factors, risk-related factors, accounting and auditing aspects, disclosure-related components, organizational and educational factors, and standards-related elements. Social and environmental factors are identified as intervening conditions, whereas regulatory and legal requirements, accounting and auditing components, and standards-related factors act as causal conditions. Additionally, educational factors are recognized as contextual conditions within the risk disclosure framework.

Originality / Value: The outcomes of this study provide valuable insights to managers, auditors, researchers, and other stakeholders in formulating effective strategies for risk management and enhancing financial reporting quality. Furthermore, the development of a risk disclosure index based on financial risk disclosure criteria under reporting standards, professional requirements, prior studies, and legal frameworks will support organizations in ongoing improvement initiatives and promoting more transparent reporting practices.

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