An assessment of risk and risk management information disclosure of companies listed in Nasdaq OMX Baltic and Euronext Brussels

Details

Supervisors

Sarens, Gerrit

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion

Abstract

The main goal of this master thesis is to discuss theoretically and to evaluate empirically the differences of risk and risk management information disclosure (RRMID) among companies listed in Nasdaq OMX Baltic and Euronext Brussels and to determine factors influencing such differences. The research is conducted in 3 main parts. In the first part, an overview of corporate risk and risk management concepts are presented. Further, the main theories considering the overall information disclosure are discussed. Finally, the importance of RRMID is argued and factors influencing it are identified. In the second part, the research methodology for the RRMIDs’ assessment of companies listed in Nasdaq OMX Baltic and Euronext Brussels is presented. 3 hypotheses are raised and its testing criteria are set. The argumentation of chosen methodology is justified and logical structure of the empirical research is presented. Lastly, the limitations of the research are defined. In the third part, the research results and conclusions are proposed. It is determined that companies listed in Euronext Brussels disclose more risk and risk management (RRM) information, RRM related disclosures are more qualitative, focused on past or present events and has neutral meaning in both markets. Companies also disclose more information about risks itself than about risk management. Finally, only companies’ size and presence of audit committee are significant factors influencing RRMID.