The impact of corporate governance mechanisms on risk disclosure

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Aws AlHares ORCID logo, Osama Al-Hares ORCID logo

DOI:10.22495/cocv17i4siart7

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Abstract

The current study evaluated the influence of corporate governance mechanisms (CGM) from 130 banks from 13 Middle East and North Africa (MENA) countries. The goal was to analyze their risk disclosure practices from 2012-2019 and understand the impact of corporate governance (CG) on the level of bank risk disclosure. The current findings reveal a positive association between the level of bank-risk disclosure and 1) the presence of Sharia supervisory board; 2) the ownership of structure at the bank level; and 3) control of corruption at the country-level. The study has implications for developing, implementing, and enforcing governance standards at the corporate and national levels that are relevant to corporate boards, investors, governments, and regulatory authorities.

Keywords: Corporate Governance, Risk Disclosure, Banks, MENA Countries

Authors’ individual contribution: Conceptualization – A.A.; Methodology – A.A. and O.M.A.; Writing – A.A. and O.M.A.; Visualization – A.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G34, G38, G30, G32, M41, M48, M40, O32, D81

Received: 22.06.2020
Accepted: 05.08.2020
Published online: 06.08.2020

How to cite this paper: AlHares, A., & Al-Hares, O. M. (2020). The impact of corporate governance mechanisms on risk disclosure [Special issue]. Corporate Ownership & Control, 17(4), 292-307. http://doi.org/10.22495/cocv17i4siart7