RISK DISCLOSURES IN FINANCIAL STATEMENTS OF BANKS IN BOSNIA AND HERZEGOVINA
DOI:
https://doi.org/10.7251/ZREFIS1918011PKeywords:
risk, disclosure, financial statements, banks, Bosnia and HerzegovinaAbstract
This study examines the practice of disclosing risk information in the financial statements of banks in Bosnia and Herzegovina. The research is carried out using the content analysis. The aim of the research is to determine the volume and characteristics of risk disclosures. The results of research show that banks in Bosnia and Herzegovina disclose less risk information than banks in developed countries, such as Canada and the UK. Most information is disclosed about credit risk. More quantitative than qualitative data is disclosed. The banks are focused on providing mandatory risk disclosures but they do not provide all mandatory disclosures. They primarily disclose past and time-neutral risk information. They are more likely to disclose positive and neutral news about risk exposure and risk management rather than negative news.References
Abraham, Santhosh, and Paul Cox. 2007. "Analysing the Determinants of Narrative Risk Information in UK FTSE 100 Annual Reports." The British Accounting Review 39(3): 227-248
Abraham, Santhosh, Claire Marston, and Phillip Darby. 2012. Risk Reporting: Clarity, Relevance and Location. Edinburgh: Institute of Chartered Accountants of Scotland
Adamu, Musa Uba. 2013. "Risk Reporting: A Study of Risk Disclosures in the Annual Reports of Listed Companies in Nigeria." Research Journal of Finance and Accounting 4(16): 140-147
Al-Maghzom, Abdullah, Khaled Hussainey, and Doaa Aly. 2016. "The Level of Risk Disclosure in listed Banks: Evidence from Saudi Arabia." Corporate Ownership and Control 14(1): 175-194
AICPA (American Institute of Certified Public Accountants). 1987. Report of the Task Force on Risk and Uncertainties. New York: AICPA
AICPA (American Institute of Certified Public Accountants). 1994. Disclosures of Certain Significant Risks and Uncertainties. New York: AICPA
Amran, Azlan, Abdul Manaf Rosli Bin, and Bin Che Haat Mohd Hassan. 2008. "Risk Reporting: An Exploratory Study on Risk Management Disclosure in Malaysian Annual Reports." Managerial Auditing Journal 24(1): 39-57
Anagnostopoulos, Yiannis, and Rosemary Skordoulis. 2011. "Risk Disclosure Policies: A Cross-sectional Analysis of the Greek Banking Industry." Paper presented at the 2nd annual Faculty of Business and Law conference, London, UK, May
BCBS (Basel Committee on Banking Supervision). 1998. Enhancing Bank Transparency. Basel: BCBS
Beltrán, José Miguel Tirado. 2014. "Risk Disclosure and Cost of Equity: The Spanish case." Contaduría y administración 59(4): 105-135
Beretta, Sergio, and Saverio Bozzolan. 2004. "A Framework for the Analysis of Firm Risk Communication." The International Journal of Accounting 39(3): 265-288
Bischof, Jannis. 2009. "The Effects of IFRS 7 Adoption on Bank Disclosure in Europe." Accounting in Europe 6(2): 167-194
CICA (Canadian Institute of Chartered Accountants). 2002. Management’s Discussion and Analysis - Guidance on Preparation and Disclosure. Toronto: CICA
Deumes, Rogier. 2008. "Corporate Risk Reporting: A Content Analysis of Narrative Risk Disclosures in Prospectuses." The Journal of Business Communication 45(2): 120-157
Dicuonzo, Grazia, Antonio Fusco, and Vittorio Dell’Atti. 2017. "Financial Risk Disclosure: Evidence from Albanian And Italian Companies." KnE Social Sciences 1.2 (2017): 182-196
Dobler, Michael, Kaouthar Lajili, and Daniel Zéghal. 2011. "Attributes of Corporate Risk Disclosure: An International Investigation in the Manufacturing Sector." Journal of International Accounting Research 10(2): 1-22
Domínguez, Luis Rodríguez, and Ligia Carolina Noguera Gámez. 2014. "Corporate Reporting on risks: Evidence from Spanish companies." Revista de Contabilidad 17(2): 116-129
Elshandidy, Tamer, Ian Fraser, and Khaled Hussainey. 2015. "What Drives Mandatory and Voluntary Risk Reporting Variations across Germany, UK and US?" The British Accounting Review 47(4): 376-394
Elshandidy, Tamer, Philip Shrives, Matt Bamber, and Santhosh Abraham. 2018. "Risk Reporting: A Review of the Literature and Implications for Future Research." Journal of Accounting Literature 40: 54-82
FSB (Financial Stability Board). 2012. Enhancing the Risk Disclosures of Banks. Report of the Enhanced Disclosure Task Force. Basel: FSB
Hossain, Mohammed, and Masrur Reaz. 2007. "The Determinants and Characteristics of Voluntary Disclosure by Indian Banking Companies." Corporate Social Responsibility and Environmental Management 14(5): 274-288
IASB (International Accounting Standards Board). 2016. International Financial Reporting Standard (IFRS 7): Financial Instruments: Disclosures. London: IASB
IASCF (International Accounting Standards Committee Foundation). 2010. Guidance on Implementing IFRS 7 Financial Instruments: Disclosures. London: IASCF
ICAEW (Institute of Chartered Accountants in England and Wales). 1997. Financial Reporting of Risks – Proposal for a Statement of Business Risks. London: ICAEW
ICAEW (Institute of Chartered Accountants in England and Wales). 1999. No Surprises: The Case for Better Risk Reporting. London: ICAEW
ICAEW (Institute of Chartered Accountants in England and Wales). 2002. No Surprises: Working for Better Risk Reporting. London: ICAEW
ICAEW (Institute of Chartered Accountants in England and Wales). 2011. Reporting Business Risk: Meeting Expectations. London: ICAEW
Kajüter, Peter. 2004. “Risk Reporting in Germany: Evidence from a Longitudinal Study.” Paper presented at the 27th annual congress of the European Accounting Association. Prague
Khlif, Hichem, and Khaled Hussainey. 2016. "The Association between Risk Disclosure and Firm Characteristics: A Meta-analysis." Journal of Risk Research 19(2): 181-211
Konishi, Noriyuki, and Md Mohobbot Ali. 2007. "Risk Reporting of Japanese Companies and its Association with Corporate Characteristics." International Journal of Accounting, Auditing and Performance Evaluation 4(3): 263-285
Lajili, Kaouthar, and Daniel Zéghal. 2005. "A Content Analysis of Risk Management Disclosures in Canadian Annual Reports." Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l'Administration 22(2): 125-142
Linsley, Philip M., and Philip J. Shrives. 2005. "Examining Risk Reporting in UK Public Companies." The Journal of Risk Finance 6(4): 292-305
Linsley, Philip M., and Philip J. Shrives. 2006. "Risk Reporting: A Study of Risk Disclosures in the Annual Reports of UK Companies." The British Accounting Review 38(4): 387-404
Linsley, Philip M., Phillip J. Shrives, and Mandy Crumpton. 2006. "Risk Disclosure: An Exploratory Study of UK and Canadian banks." Journal of Banking Regulation 7(3-4): 268-282
Linsmeier, Thomas J., Daniel B. Thornton, Mohan Venkatachalam, and Michael Welker. 2002. "The effect of Mandated Market Risk Disclosures on Trading Volume Sensitivity to Interest Rate, Exchange Rate, and Commodity Price Movements." The Accounting Review 77(2): 343-377
Madrigal, Mónica Hernández, Beatriz Aibar Guzmán, and Cristina Aibar Guzmán. 2015. "Determinants of Corporate Risk Disclosure in Large Spanish Companies: A Snapshot." Contaduría y Administración 60(4): 757-775
Maffei, Marco, Massimo Aria, Clelia Fiondella, Rosanna Spanò, and Claudia Zagaria. 2014. “(Un) Useful Risk Disclosure: Explanations from the Italian Banks.” Managerial Auditing Journal 29(7): 621-648
Milne, Markus J., and Ralph W. Adler. 1999. "Exploring the Reliability of Social and Environmental Disclosures Content Analysis." Accounting, Auditing & Accountability Journal 12(2): 237-256
Miihkinen, Antti. 2012. “What Drives Quality of Firm Risk Disclosure? The Impact of a National Disclosure Standard and Reporting Incentives under IFRS.” The International Journal of Accounting 47(4): 437-468
Ntim, Collins G., Sarah Lindop, and Dennis A. Thomas. 2013. “Corporate Governance and Risk Reporting in South Africa: A Study of Corporate Risk Disclosures in the Pre-and Post-2007/2008 Global Financial Crisis Periods.” International Review of Financial Analysis 30: 363-383
Oliveira, Jonas, Lúcia Lima Rodrigues, and Russell Craig. 2011a. “Risk-related Disclosures by Non-finance Companies: Portuguese Practices and Disclosure Characteristics.” Managerial Auditing Journal 26(9): 817-839
Oliveira, Jonas, Lúcia Lima Rodrigues, and Russell Craig. 2011b. “Risk-related Disclosure Practices in the Annual Reports of Portuguese Credit Institutions: An Exploratory Study.” Journal of Banking Regulation 12(2): 100-118
Oliveira, Jonas, Lúcia Lima Rodrigues, and Russell Craig. 2011c. “Voluntary Risk Reporting to Enhance Institutional and Organizational Legitimacy: Evidence from Portuguese Banks.” Journal of Financial Regulation and Compliance 19(3): 271-289
Papa, Vincent. 2016. User Perspective on Financial Instrument Risk Disclosures under International Financial Reporting Standards. New York: CFA Institute
PwC (Price Waterhouse Coopers). 2008. Accounting for Change: Transparency in the Midst of Turmoil. A Survey of Banks’ 2007 Annual Reports. London: PwC
Rajab, Bassam, and Morrison Handley-Schachler. 2009. “Corporate Risk Disclosure by UK Firms: Trends and Determinants.” World Review of Entrepreneurship, Management and Sustainable Development 5(3): 224-243
Schrand, Catherine M., and John A. Elliott. 1998. “Risk and Financial Reporting: A summary of the Discussion at the 1997 AAA/FASB Conference.” Accounting Horizons 12(3): 271–282
Smith, Malcolm. 2003. Research Methods in Accounting. London: Sage Publications.
Weber, Robert P. 1990. Basic Content Analysis: Qualitative Applications in the Social Sciences. Newbury Park: Sage Publications
Downloads
Published
Issue
Section
License
Copyright (c) 2019 Zbornik radova Ekonomskog fakulteta u Istočnom Sarajevu
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
