Enhancing Decision-Making Through Non-Financial Risk Disclosure in Bahrain's Companies

This study aims to evaluate the degree of disclosure on non-financial risks (NFR) among non-financial firms listed on the Bahrain Bourse (BHB). This study includes all non-financial firms listed on the BHB to achieve its aims. The study employed content analysis, utilising a sample of 19 companies and 95 observations from 2018 to 2022. The study relied on the descriptive method to assess the level of NFR disclosure. The key findings show a decline in the level of disclosure regarding non-financial risks. The most revealed components of NFR were empowerment risk elements, followed by strategic risks. The study found that the materials sector disclosed the highest number of items, followed by the industrial sector, the communication services sector, real estate firms, consumer discretionary, and consumer staples. This study has implications for legislative bodies in the Kingdom of Bahrain, as it aims to enhance the principle of transparency and reduce information asymmetry, by encouraging greater voluntary disclosure overall, with a specific focus on NFR disclosure.