We examine companies’ compliance with IFRS risk disclosure rules for the first fiscal year following 2007. For a sample of 383 firms from 20 European countries, we find that average risk disclosure compliance is only 62 percent. Countries’ enforcement strength is generally positively associated with risk disclosure compliance and even more effective in the presence of outsider monitoring. We highlight that cross-country differences in enforcement must be properly accounted for to ensure consistent risk disclosure compliance.

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doi.org/10.1016/j.jaccpubpol.2020.106739, hdl.handle.net/1765/129629
Journal of Accounting and Public Policy
Erasmus School of Economics

Adam-Müller, A.F.A. (Axel F.A.), & Erkens, M. (2020). Risk disclosure noncompliance. Journal of Accounting and Public Policy, 39(3). doi:10.1016/j.jaccpubpol.2020.106739