Determinants of Financial Risk Disclosure under Accounting Standard No. 37

Articles in Press

Document Type : Research Paper

Authors

1 Department of Accounting, Faculty of Social Sciences, Imam Khomeini International University, Qazvin, Iran.

2 Department of Accounting, Faculty of Management, Economics, and Accounting, Payam Noor University, Tehran, Iran.

10.22103/jak.2025.25189.4168

Abstract

Objective: This research aims to examine the level of compliance of companies listed on the Tehran Stock Exchange with the requirements of Accounting Standard No. 37 regarding the disclosure of financial risks. Additionally, this study identifies of determinants risk disclosure, such as corporate governance mechanisms, firm characteristics, and industry type.
 
Method: In this study, panel data from 221 companies listed on the Iranian capital market during the period 2019 to 2023 were utilized. To analyze the data, a panel regression model was employed. The independent variables included corporate governance mechanisms—such as board size, proportion of non-executive directors, audit committee independence, ownership concentration, and managerial ownership—as well as firm-specific characteristics, including financial leverage, audit firm size, and firm size, along with the industry type.
 
Results: The results showed that various factors, such as the proportion of non-executive directors, financial leverage, audit firm size, firm size, and industry type, have a positive correlation with increased financial risk disclosure. Meanwhile, board size, ownership concentration, audit committee independence, and managerial ownership did not show significant results in relation to risk disclosure.
 
Conclusion: The findings of this research emphasize that, in addition to corporate governance mechanisms, the specific characteristics of each industry and financial variables such as financial leverage can have significant impacts on the level of financial risk disclosure. It is recommended that regulatory bodies develop clearer policies for enhancing compliance with financial risk disclosure standards.

Keywords

Main Subjects

References

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Journal of Accounting Knowledge

Articles in Press, Accepted Manuscript
Available Online from 10 August 2025

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  • Receive Date: 30 April 2025
  • Revise Date: 12 July 2025
  • Accept Date: 10 August 2025

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