FIRM'S SIZE, MANDATORY ADOPTION OF IFRS AND CORPORATE RISK DISCLOSURE AMONG LISTED NON-FINANCIAL FIRMS IN SAUDI ARABIA

This study examines the relationship between the mandatory adoption of International Financial Reporting Standards (IFRS) and the disclosures of corporate risk among nonfinancial firms in Saudi Arabia. Based on the observation of 320 firm-year from 2015 until 2017, this study reveals a positive relationship between the mandatory adoption of IFRS and the corporate risk disclosures. The relationship holds when we decompose corporate risk disclosures into financial and non-financial risk disclosures. The results are consistent for both the pooled Ordinary Least Squares (OLS) and random effects estimations. Additionally, the result is steady with all primary categories except risk management. We also provide evidence that large firms are more likely to adopt IFRS and reveal more risk information than small firms. This study's findings are relevant for market regulators in their attempt to improve corporate risk disclosures among listed firms in Saudi Arabia.