Risk Reporting: A Study of Risk Disclosures in the Annual Reports of Listed Companies in Nigeria.

Abstract

This study assesses the effect of company leverage on corporate risk disclosure in Nigeria. The population of the study comprises four sectors quoted in the Nigerian Stock Exchange. These sectors contained 24 companies on which stratified sampling technique is used in the selection of 12 companies for the study. The data for the study have been drawn from year 2010 annual reports of the sample companies. The study employs regression tools of analysis in the course of the study. The result shows that corporate risk disclosure is not significantly related to company leverage. It is concluded that company size is not influencing corporate risk disclosure in Nigeria. It is recommended that, the CBN and other regulators responsible for term loan should come up with a comprehensive guidelines and policies on corporate risk disclosure, because a lot of companies complaint on their inability to access loan facilities from the financial institutions and resulted their operation to carry on below normal capacity, this is very dangerous and is at detriment of the Nigerian economy. This move can help financial institutions to assess company risks and give them loan facility on demand; this is good and can facilitate Nigerian economy.

Keywords: Corporate Risk Disclosure and Leverage Nigeria.