Background and problem: Accounting shall give a true and a fair view of a company, where an annual report´s compliance with IFRS 7 and risk disclosure ratio is highly valued by stakeholders. Risks are always a relevant topic, as they arise unexpectedly and society´s expectations of businesses change. The information that companies provide regarding risk, both current and potential, is highly relevant to their stakeholders. Thus, risk disclosures are arguably one of the most important elements in the analysis of annual reports. This implies that companies’ risk disclosures are actualized and problematized, where compliance with Covid-19 related risks, interest rate risk and geopolitical instability increases the complexity of risk disclosures. As a result of the preceding, there is a valid reason to examine the extent to which companies listed on Nasdaq OMX Stockholm are complying with the IFRS framework and the IFRS 7 standard regarding to risk disclosures. Purpose: The purpose of this study is to examine the extent to which companies listed on Nasdaq OMX Stockholm provide information about risks in their annual reports. The study also aims to examine which factors affect the level of risk disclosure in companies’ annual reports. Research issue: To which extent do companies listed on Nasdaq OMX Stockholm provide risk disclosures in their annual reports and what are the factors that affect this choice? Method: The study adopts a quantitative research strategy in order to achieve the objectives set by there search issue. The research material consists of each company’s annual report from 2022, which implies that these are the source of information and that a content analysis is performed to quantify the content. The study has excluded the financial sector, as they are subject to special rules. The factors that are examined in the statistic models used to explain the effects on the amount of risk disclosures are: companysize, industry, audit firm, the size of the board of directors, the date of publication of the annual report and the number of pages in the annual report. The final sample size is 64 companies. Results and conclusions: The results of the study accept the hypothesis that firm size is an explanatory factor in the extent to which companies provide risk disclosures in their annual reports in relation to IFRS7. The remaining hypotheses are rejected, as the results could not prove any significance for the sevariables in relation to the extent of risk disclosures.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:sh-51897 |
| Date | January 2023 |
| Creators | Alstermark, Alexander, Lundahl, Sofia |
| Publisher | Södertörns högskola, Institutionen för samhällsvetenskaper |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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