Risk Study: An Explore Of Risk Disclosure Trend In Malaysia

The aim of this paper is to examine the availability of risk information in the annual report of Malaysian companies by focusing on the non-finance sector. To answer the stated research question and hypothesis, the authors examine 166 companies listed in Bursa Malaysia from 2008 until 2017. The method employed in this study to extract the information from the annual report and plotting risk disclosure trend is content analysis. The analysis finding suggested that, in general, risk disclosure practice in Malaysia is experiencing an upward trend in the last ten years (2008-2017). However, it was found that the implementation of disclosure regulation in Malaysia is still insufficient as the study found that the level of disclosure information is lower. There is a need to further examine the current regulation and standard in an effort to improve the disclosure practice among and aligned with international standards. This study employed signalling theory as a mean to explain the study objective.