Determinants of risks disclosure in non-financial companies. Evidence from Portuguese capital market
Keywords:Financial risks, Disclosure level, Disclosure index, Non-financial companies
The present study aims to determine the level of disclosure about financial risks in Portuguese non-financial companies and to identify the determinants of the level of disclosure. To carry out this study, the research methodology used was the content analysis of the reports and accounts, for the period 2017, of 40 non-financial companies listed on Euronext Lisbon, using a disclosure index for financial risks, created based on the requirements contained in the International Financial Reporting Standard No. 7 - Financial Instruments: Disclosures. After the content analysis, to identify the determining factors of disclosure level, a linear regression model was built to relate certain characteristics of the companies with the disclosure level presented. It was possible to conclude that the companies under study have an average disclosure level of about 50% of the requirements contained in IFRS 7 and that the size of companies and the concentration of capital significantly and positively influence the level of disclosure about financial risks. Indebtedness was also a determinant factor, but with a negative sign, being an uncommon result in relation to most other studies.