Malaysia Risk Reporting Environment: Understanding of the Study

Abstract

In today volatile business environment, the need for transparent information is arguably more needed than before. The internationalisation of company financial flows has caused risk reporting is becoming more important and recently become one of the most significant issues in financial markets. In Malaysia, past accounting scandals of Transmile and Port Klang Free Zone and the global financial crisis in 2007 – 2009 has triggered the market to pay special attention to company annual report especially their risk report. Due to pressure from professional bodies and government, the management and standard setters are working continuously to enhance company risk disclosure practice. The previous study also suggested despite the effort given by the responsible party to enhance disclosure practice, it was argued that current corporate disclosure is rather insufficient and yet to achieve a satisfactory level. Therefore, the objective of this study is to extend the current disclosure literature by discussing the problems of risk disclosure practice among listed companies in Malaysia. In addition, the study also intends to highlight the research questions and objective formulation.