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Journal of Risk and Financial Management is published by MDPI from Volume 6 Issue 1 (2013). Articles in this Issue were published by another publisher in Open Access under a CC-BY (or CC-BY-NC-ND) licence. Articles are hosted by MDPI on as a courtesy and upon agreement with Prof. Dr. Raymond A. K. Cox and Prof. Dr. Alan Wong.
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J. Risk Financial Manag. 2009, 2(1), 94-117;

Corporate Risk Disclosure and Corporate Governance

Telfer School of Management, University of Ottawa, 55 Laurier East, Ottawa, Ontario, K1N 6N5, Canada
Published: 31 December 2009
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To date, research which integrates corporate governance and risk management has been limited. Yet, risk exposure and management are increasingly becoming the core function of modern business enterprises in various sectors and industries domestically and globally. Risk identification and management are crucial in any business strategy design and implementation. From the investors’ point of view, knowledge of the risk profile, risk appetite and risk management are key elements in making sound portfolio investment decisions. This paper examines the relationships between corporate governance mechanisms and risk disclosure behavior using a sample of Canadian publicly-traded companies (TSX 230). Results show that Canadian public companies are more likely to disclose risk management information over and above the mandatory risk disclosures, if they are larger in size and if their boards of directors have more independent members. Minority voting control ownership structures appear to negatively impact risk disclosure and CEO incentive compensation shows mixed results. The paper concludes that more research is needed to further assess the impact of various governance mechanisms on corporate risk management and disclosure behavior. View Full-Text
Keywords: Corporate governance; Enterprise risk management; Agency costs; Fraction of controlling votes; Risk disclosure Corporate governance; Enterprise risk management; Agency costs; Fraction of controlling votes; Risk disclosure
This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

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Lajili, K. Corporate Risk Disclosure and Corporate Governance. J. Risk Financial Manag. 2009, 2, 94-117.

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