Purpose

The objective of this paper is to investigate the impact of risk disclosures on firm value. We further investigate whether effective governance moderates the relation between risk disclosures and firm value.

Design/methodology/approach

We use a sample of the top 200 Indian listed firms on NSE from 2013 to 2018. The generalised method of moments (GMM) along with the ordinary least square (OLS) is used to investigate our research problem. Further, we use the Propensity Score Matching (PSM) technique and the Heckman selection model for correcting selection bias in the robustness section.

Findings

We find that higher risk disclosures result in lower firm value. Besides, we show that better governance minimizes the negative impact of risk disclosures on firm value. This finding encourages firms to have a good governance mechanism to mitigate the adverse effects of risk disclosures in public.

Originality/value

The main contribution of our paper is to examine the moderating effect of governance between risk disclosures in the annual report and firm value (market-based and accounting-based) in the context of an emerging economy. Moreover, the paper highlights the potential moderating effect of independent directors and resourceful boards on the risk disclosures and firm value in the Indian context.

中文翻译：

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风险披露和公司价值：治理在新兴市场中的作用

目的

本文的目的是调查风险披露对公司价值的影响。我们进一步调查有效治理是否调节风险披露与公司价值之间的关系。

设计/方法/途径

我们使用了 2013 年至 2018 年 NSE 前 200 家印度上市公司的样本。广义矩量法 (GMM) 和普通最小二乘法 (OLS) 用于调查我们的研究问题。此外，我们使用倾向得分匹配 (PSM) 技术和 Heckman 选择模型来纠正稳健性部分中的选择偏差。

发现

我们发现较高的风险披露会导致较低的公司价值。此外，我们表明，更好的治理可以最大限度地减少风险披露对公司价值的负面影响。这一发现鼓励公司建立良好的治理机制，以减轻公开披露风险的不利影响。

原创性/价值

我们论文的主要贡献是检验在新兴经济体的背景下，治理在年度报告中的风险披露与公司价值（基于市场和基于会计）之间的调节作用。此外，本文强调了独立董事和足智多谋的董事会在印度背景下对风险披露和公司价值的潜在调节作用。