Investigating the Impact of Firm Characteristics on the Risk Disclosure Quality
Nermine S. M. Hassan

Abstract
This study makes a contribution to the risk disclosure quality (RDQ) literature by offering the first study in Egypt. This study develops a framework to assess the risk disclosure quality and examines the determinants of RDQ practices. We develop a framework for analyzing the quality of risk disclosure practices. This framework is based on four criteria: “Relevance”, “Understandability”, “Comparability” and “Verifiability”. Using a sample of the Egyptian listed companies for the period of 2006-2010 (consists of 135 observations), we find that there is an improvement in all criteria of risk disclosure quality, and the risk information is relevant and understandable to some extent, but it is less comparable and verifiable. Results of the statistical analysis revealed that the firm size and leverage level are the most important determinants of the risk disclosure quality.

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