Abstract:

Risk reporting is important for business survival as it is being used to disseminate information pertaining to risk and its impacts to potential investors and shareholders. In a challenging economic environment, it is undeniable that the mandatory risk information is a central focus as compared to voluntary risk information. However, business practitioners have raised their concern on insufficient information on risky business events being reported publicly as it is evidenced to have impacts toward business valuation and its survival. Thus, this study is carried out to examine the relation between survivability decisions of the business that influence their risk reporting practices. The sample was drawn from 652 non-financial companies listed on the main Board of Bursa Malaysia for the financial year end 2006 to 2009. The research approach applied the content analysis of listed companies’ published annual reports. The findings revealed that there were significant influences of survivability decisions as proxied by revenue growth, industry concentration and leverage; on the voluntary risk disclosure.