The relationship between risk disclosures and board characteristics
Abstract
The aim of this paper is to investigate the extend of risk disclosures and the
relationship between board characteristics and risk disclosures in the context of Vietnamese
listed firms on Ho Chi Minh Stock Exchange (HOSE) in 2017). The samples are selected
with 269 non-financial companies listed on HOSE. The results of this paper prove that both
the board size has a positive effect on risk disclosure while the proportion of independent
directors has a negative effect on risk disclosures. More specifically, Vietnamese listed
companies are more likely to disclose risk management and information, if they are larger
in size of board and if their boards of directors have less independent members. This results
show that more directors in the board together making rational decisions will increase the
efficiency of CG mechanism and improve the CG practices. Meanwhile, more independent
directors will reduce the changes in BOD systems and also decrease risk disclosures. With
the findings in this paper, there is still lack of literature and research on risk disclosure and
corporate governance to enhance and improve risk management and develop corporate
mechanism, especially in the context of developing countries and emerging market like
Vietnam.