Digital governance and compliance in litigation risk disclosure: A comparative analysis across eight economies

This study examines litigation risk disclosure and financial transparency by analyzing the application of IAS 37 and IFRS 9 across eight economies: Brazil, China, the United States, France, Germany, India, Japan, and the United Kingdom. Using financial data from the 200 largest companies in each country (2010–2025), the study evaluates governance, compliance, and the impact of macroeconomic factors, Information Systems (IS), and Information Technology (IT) on risk disclosure. Regression models and cluster analysis will assess the relationship between provisions, contingent liabilities, financial performance, and the adoption of digital compliance tools, including eXtensible Business Reporting Language (XBRL) and automated auditing. Developed economies are expected to exhibit greater transparency and structured compliance mechanisms, while emerging economies may show more variability, influenced by economic volatility, judicial efficiency, and IS adoption. By integrating macroeconomic indicators, IT-driven financial automation tools, and regulatory frameworks, this research provides insights into financial regulation, and digital transparency.