2013 Fiscal Year Final Research Report
Risk disclosure behavior and its relationship with corporate governance in Japan
| Project/Area Number |
23730445
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| Research Category |
Grant-in-Aid for Young Scientists (B)
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| Allocation Type | Multi-year Fund |
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| Research Field |
Accounting
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| Research Institution | Tokyo Keizai University |
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Principal Investigator |
KIM HYONOK 東京経済大学, 経営学部, 准教授 (40547270)
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| Project Period (FY) |
2011 – 2012
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| Keywords | リスク情報 / 非財務情報 / テキスト情報 / ディスクロージャー / 事業等のリスク / コーポレートガバナンス |
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| Research Abstract |
The purpose of this study is to reveal risk disclosure behavior and its determinants in Japanese firms. I also examine the economic effects of the disclosure.
I find that firm's characteristics such as size, market beta, PBR, R&D investment, and leverage have an effect on risk disclosure. I also find that corporate governance structure and auditor characteristics are associated with the disclosure behavior. Furthermore, there is a positive association between risk disclosure and the stock volatility. This indicates business risk disclosure affect investors' risk perceptions and thus increase the information component in the cost of capital. I also have an evidence that risk disclosure encourages firm's risk management practice. Finally, I find that responses to firm's risk disclosure vary among the audit firms.
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