The Effect of Business Strategy on Risk Disclosure

Document Type : Research Paper

Authors

1 , Department of Accounting, Razi University, Kermanshah, Iran,

2 , Department of Accounting, Faculty of Accounting, Razi University, Kermanshah, Iran.

3 Assistant Professor, Department of Accounting, Faculty of Accounting, Razi University, Kermanshah, Iran

4 Accounting, Razi University, Kermanshah, Iran.

10.22051/jaasci.2023.44674.1795

Abstract

Purpose: The purpose of the current research was to investigate the effect of business strategies on risk disclosure to know the drivers and factors affecting companies' risk to improve their competitive environment.
Methodology: The current research is a descriptive-correlation type of research and is applied in terms of its purpose. The data of 345 companies admitted to the stock exchange has been used by systematic elimination method and multivariate regression.
Result: The research findings have shown that business strategy is the determining factor for the amount of risk information disclosure in annual reports. Thus, there is a significant and positive relationship between offensive strategy and risk disclosure and a significant and negative relationship between defensive strategy and risk disclosure.
Conclusion: Companies with an offensive strategy disclose more risk-related information in their reports than companies with a defensive strategy. While defensive companies disclose less risk in their annual reports.
Contribution: In addition to enriching the research literature, the results of this research can be used to explain the effective factors in identifying risk disclosure in the financial reports of companies and improving the competitive environment in the capital market according to the effect of strategy.

Keywords

Main Subjects

References

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History

  • Receive Date: 07 September 2023
  • Revise Date: 23 November 2023
  • Accept Date: 07 December 2023

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