Voluntary risk disclosure, risk committee structure and risk committee gender diversity: Evidence from United Kingdom listed companies

Asante, Joseph Francis

Abstract

The thesis explores the impact of corporate governance on voluntary risk disclosure, the formation of a separate risk management committee, and the risk committee gender diversity of a sample of FTSE 350 firms in the UK between 2015 and 2019. The researcher achieved this by finding answers to three main research questions. First, what are the determinants of voluntary risk disclosure? Second, what are the determinants of the formation of a separate risk management committee? Third, what are the determinants of risk committee gender diversity?

Concerning the first research question, the study found that board size, the frequency of board meetings, board gender diversity, the frequency of audit committee meetings and separate risk management committee are statistically significant determinants of the volume of voluntary risk disclosure. The study shows that audit committee size and audit committee gender diversity are inversely related to the volume of voluntary risk disclosure. No relationship was found between board independence, audit committee independence and audit committee expertise and the volume of voluntary risk disclosure. After splitting the data into financial and non-financial disclosures, the study further evidenced that board size and a separate risk management committee are still determinants of risk disclosure. However, a negative relationship was found between audit committee gender diversity and risk disclosure in both data sets.

Regarding the second research question, the study established that board size, the frequency of board meetings, audit committee independence, audit committee meetings and audit committee expertise significantly influenced the formation of a separate risk management committee. The study shows that board independence is inversely related to the formation of a separate risk management committee. No relationship was found between audit committee size and the formation of a separate risk management committee.

The study is unique as it is the first to examine the determinants of risk committee gender diversity. This study evidenced that board gender diversity, risk committee independence and risk committee meetings are statistically significant in determining risk committee gender diversity. The study also found that board size and risk committee size are inversely related to risk committee gender diversity. Also, no relationship was found between board independence, board meetings and risk committee gender diversity.

• Thesis Type: Thesis
• Deposit Date: Apr 3, 2023
• Publicly Available Date: Sep 6, 2024
• Public URL: https://uwe-repository.worktribe.com/output/10607829
• Award Date: Sep 6, 2024