Association between risk disclosure and (in) existence of corporate reputation of publicly traded companies in Brazil

Authors

  • Beatriz Alves dos Santos Federal University of Ceará, Faculty of Economics, Administration, Actuarial and Accounting Sciences; Postgraduate Program in Administration and Controllership https://orcid.org/0000-0002-4141-6200
  • Anna Beatriz Grangeiro Ribeiro Maia Professor of the University of Fortaleza, Center for Communication and Management Sciences, Accounting Department. https://orcid.org/0000-0003-2402-1546
  • Alessandra Carvalho de Vasconcelos Associate Professor of the Federal University of Ceará, Brazil Department of Accounting and Post-Graduate Program in Administration and Controllership, Center of Economy, Administration, Actuarial Science and Accounting. https://orcid.org/0000-0002-6480-5620

DOI:

https://doi.org/10.5902/1983465969083

Keywords:

Risk disclosure, Corporate reputation, Legitimacy theory

Abstract

Purpose - To analyze the possible association between non-financial risk disclosure and the (in) existence of reputation in the most prominent Brazilian publicly traded companies considering the legitimacy theory.

Design/methodology/approach - The sample assembles 118 corporations listed on B3 and 345 reference forms from 2006 to 2018. In the analysis of corporate reputation, the presence or absence on ISE and, or ICO2 from B3 was considered. For non-financial risk disclosure, a factor checklist containing 31 risks was taken, categorized under operational, damage, integrity, and strategic risks, from the analysis of Reference Forms. A tree regression, a multiple correspondence analysis, and a T-test of the difference between means were used for data analysis.

Findings - There is scientific evidence that the companies with reputations demonstrate non-financial risk disclosure superior to the others. This behavior is confirmed in the subcategories of integrity and strategic risks. Moreover, risk factors in the subcategory of integrity risks were crucial to non-financial risk disclosure.

Originality/value - This research paves the way to deepen the early debate surrounding risk disclosure and corporate reputation, especially regarding the quality of non-financial risk disclosure.

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Author Biographies

Beatriz Alves dos Santos, Federal University of Ceará, Faculty of Economics, Administration, Actuarial and Accounting Sciences; Postgraduate Program in Administration and Controllership

Master in Administration and Controllership from Federal University of Ceará, Fortaleza, Ceará, Brazil.

Anna Beatriz Grangeiro Ribeiro Maia, Professor of the University of Fortaleza, Center for Communication and Management Sciences, Accounting Department.

Doctor in Administration and Controllership from Federal University of Ceará, Fortaleza, Ceará, Brazil.

Alessandra Carvalho de Vasconcelos, Associate Professor of the Federal University of Ceará, Brazil Department of Accounting and Post-Graduate Program in Administration and Controllership, Center of Economy, Administration, Actuarial Science and Accounting.

Doctor of Production Engineering from Federal University of Santa Catarina, Santa Catarina, Brazil.

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Published

2022-12-20

How to Cite

Santos, B. A. dos ., Maia, A. B. G. R. ., & Vasconcelos, A. C. de . (2022). Association between risk disclosure and (in) existence of corporate reputation of publicly traded companies in Brazil. Revista De Administração Da UFSM, 15, 678–700. https://doi.org/10.5902/1983465969083

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