Title: Effect of corporate risk management disclosure on financial performance of non-financial service firms listed at Nairobi Securities Exchange, Kenya

Authors: Karambu Kiende Gatimbu; Henry Kimathi; Joseph Masinde Wabwire

Addresses: Department of Business and Economics, University of Embu, Embu, Nairobi, Kenya ' Department of Business Administration, Chuka University, Chuka, Nairobi, Kenya ' Department of Business Administration, Chuka University, Chuka, Nairobi, Kenya

Abstract: The Kenyan investment community and other stakeholders lag behind America, Europe and Australia in terms of their willingness and ability to cross-examine sustainability reports for risk and financial modelling. This study consequently aimed at assessing the effect of corporate risk management disclosure on financial performance of listed firms in Kenya. Content analysis of sampled listed companies' annual reports was undertaken to examine risk management disclosure practices. Casual research design was employed to determine the cause-effect relationship between risk management disclosure and financial performance. Target population of the study was 61 listed companies. The sample size was 32 listed companies. Coefficient of skewness was used to test the normality of data. Homoscedasticity and auto-correlation assumptions of the regression model were tested. Risk disclosure was found to have a positive but with no significant difference on mean financial performance. However, there is a strong significant relationship between risk disclosure and financial performance.

Keywords: risk management disclosure; financial performance; non-financial firms; NSE.

DOI: 10.1504/IJBCRM.2017.086065

International Journal of Business Continuity and Risk Management, 2017 Vol.7 No.2, pp.95 - 102

Received: 16 Jun 2016
Accepted: 04 Dec 2016
Published online: 22 Aug 2017 *

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