The association between the level of risk disclosure and corporation characteristics in the annual reports of Egyptian companies

*Purpose: the main objective of this study is to test and examine the relationship between specific firm characteristics in Egypt and the level of risk disclosure in the annual reports of Egyptian firms listed on the Egyptian Stock Exchange. 
*Design/methodology/approach: this study uses a list of risk keywords to determine the differences in the level of risk disclosure between firms in different sectors. The sample includes 49 non-financial firms listed on the Egyptian Stock Exchange for the years 2008, 2009 and 2010. Statistical analysis is implemented using a multiple linear regression analysis.   
*Findings: the results show that firm size is significantly positive (in all the three years) with the level of risk disclosure. Industry type variable (which divided to: industries, cement, construction, petrochemicals and services), is found being insignificantly associated with the level of risk information disclosed in the annual reports for all the three years. However, leverage is found being insignificantly associated with the level of risk information disclosed in the annual reports for all the three years.
*Research limitations/implications: there are many requests to help shareholders to understand a firm’s risk position by providing more information risks. Disclose more risk information do not lead to improve risk communication until increase the readability of the risk disclosure. We consider the follow limitations. First, the selected items do not show importance levels observed by financial information users. Second, the study applies an “unweights” approach to measure the level of forward-looking disclosure. Finally, the study concentrates on non-financial listed firms on the Egyptian Stock Exchange and excludes financial and insurance firms.