How can we account for differences in the extent of risk disclosure among companies? The paper expands the existing explanations by claiming that corporate risk reporting is not just financial but also political communication. The presented empirical analysis of how corporations disclose Brexit-related uncertainties suggests that risk reporting is a part of a company’s holistic conversation with multiple audiences in society (e.g. politicians, regulators, journalists and customers) and might have well-targeted but also unforeseen effects on each of them. The quantity and quality of risk disclosure can be explained–among other factors–by the extent to which companies want to participate in public discourse and wish their opinions on a particular political issue, such as Brexit, to be heard. In other words, risk reporting is a part of ‘the politics of expectations’ which should be investigated in its own right.
|Journal||Review of Social Economy|
|Early online date||7 Nov 2021|
|Publication status||E-pub ahead of print/First online - 7 Nov 2021|
- Risk reporting