THE EFFECT OF THE FINANCIAL CRISIS ON THE DISCLOSED LEVEL OF RISK: A COMPARATIVE STUDY OF U.S. AND CANADIAN CORPORATIONS

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Abstract

The effect of the financial crisis on the level of enterprise risk management (ERM) disclosures was examined through a content analysis of the 2007 and 2008 annual reports of S&P 500 and S&P-TSX Composite Index companies in the consumer discretionary, energy, industrials, and materials sectors. We found that the 2008 financial crisis had a negligible impact on the level of risk disclosures by major non-financial U.S. and Canadian corporations. Comparing the average levels of risks disclosed between the two countries, any differences in the level of risk exposure, risk consequences, or risk management could not be considered to be statistically significant.

Keywords: Financial Crisis, Risk Level, Canada

How to cite this paper: Maingot, M., Quon, T., & Zéghal, D. (2014). The effect of the financial crisis on the disclosed level of risk: A comparative study of U.S. and Canadian corporations. Corporate Ownership & Control, 11(4-3), 322-328. https://doi.org/10.22495/cocv11i4c3p3