The Impact of Financial Risk Disclosures on Corporate Value: Evidence for Portugal

Vanda Roque – Polytechnic University of Cávado and Ave, Campus do IPCA, 4750-810 Barcelos, Portugal

Kátia Lemos – Polytechnic University of Cávado and Ave, Campus do IPCA, 4750-810 Barcelos, Portugal

Helena Barbosa – Polytechnic University of Cávado and Ave, Campus do IPCA, 4750-810 Barcelos, Portugal

Abstract: The purpose of this paper is to investigate the impact of financial risk disclosures on corporate value. Based on content analysis of 2021 annual reports of 29 nonfinancial companies listed on Euronext Lisbon, the authors construct a global disclosure index that captures financial risk disclosures, as well as 3 sub-indices to capture credit, liquidity and market risks disclosures. Using multiple linear regression models, the authors investigate the impact of financial risk disclosures on corporate value, as measured by Tobin’s Q. The results show that financial risk disclosures are still parsimonious, with corpora- tions disclosing mainly qualitative information. The results also show a negative and statistically significant impact of market risk disclosures on corporate value. When we consider credit risk and liquidity risk disclosures, as well as the global disclosure index, the impact is not statistically significant.

10th International Scientific Conference ERAZ 2024 – Conference Proceedings: KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT,  hybrid – online, virtually and in person, Lisbon, Portugal, June 6, 2024

ERAZ Conference Proceedings published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia

ERAZ conference partners: Faculty of Logistics, University of Maribor, Maribor (Slovenia); University of National and World Economy – UNWE, Sofia (Bulgaria); Center for Political Research and Documentation (KEPET), Research Laboratory of the Department of Political Science of University of Crete (Greece); Institute of Public Finance – Zagreb (Croatia); Faculty of Tourism and Hospitality Ohrid, University of St. Kliment Ohridski from Bitola (North Macedonia)

ERAZ Conference 2024 Conference Proceedings: ISBN 978-86-80194-86-8, ISSN 2683-5568,

DOI: https://doi.org/10.31410/ERAZ.2024

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

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