Research Proposal

Research Title
Risk Management and Reporting: Empirical Evidence from Bangladesh

Research Motivation
Reduced Investors confidence to make investment decision due to corporate scandals, Lack of risk reporting
and management failure, lack of appropriate risks reporting framework and measurement guidance.

Research Gap
Lack of research on risk management and reporting in an emerging country named as Bangladesh.

Research Question

How the firms manage and report the risk issues in Bangladesh..

This research will try to answer following particular questions:

What types of risky information do the companies disclose?
What are the essential elements of risk management framework?
What are the determinants guiding the risk reporting process?
What are the ways of measurement of risk technique?
What is the role of corporate governance for improving risk management?
Has the volume of risk disclosures in companies report changed over the years?
Whether the volume of risk disclosures is related to companies size and industry?
Compliance of risk management according to standard, relevant laws and regulations?

Research Importance
This research will give the insights of risk to the stakeholders.
Literature Review and Hypothesis Development

Beretta and Bozzolan (2004), Linsley and Shrives (2006) and Abraham et
al. (2007) developed frameworks to analyze the risk using the financial
risk, business Risk, operational and other risk, compliance and
information processing and technology risk.

Hypothesis:
H1: There will be a positive association between company size and the
total number of risk disclosures .
H2 There is no association between the level of risk within a company
and the total number of risk disclosures.
H3 The number of non-monetary risk disclosures will be significantly
greater than the number of monetary risk disclosures.
H4. The number of past risk disclosures will be significantly greater than
the number of future risk disclosures.
H5 The number of good and bad risk disclosures will not be
significantly different from one another.
Research Method
Sample
listed firms of Dhaka Stock Exchange (DSE)
Time Period
2000 to 2014
Data Source :
annual report, company website, Dhaka Stock Exchange (DSE), Market
Pulse, DSE Monthly Review and Bangladesh Bank, Bangladesh Securities
and Exchange Commission (BSEC)
Methodological Approach
Disclosure index using the content analysis will be used for this study as
this technique is very useful for gathering data, codifying qualitative and
quantitative information into predefined categories.
Alternative Approach
subjective analyst ratings.
Robustness
Changing the variables like total asset, Sales revenue can be used as proxy
of firm size.
Research Contribution
Investors-
to assess the risk profile of a company,
to minimize the predicted risk through mitigation techniques and
prevent creation of overvalued stock.
to make confidence for investment decision
Capital Market
improve transparency,
reduce market distortions and information asymmetry
increase the efficiency of the capital market.
Regulators and Policy Makers
to know the effect of corporate governance on risk management and take appropriate
measure
to develop risk management framework
Academic Value
risk management literature
Company
encouraging better risk management,
equal treatment of all investors and improve accountability
usefulness of financial reporting and ensure sustainable development
Entrepreneurs and Practitioners
Assess different types of risk involved in business and solving techniques
Direction of Future Research
Quantify in amount of different types of risk

Conducting interviews with users such as analysts,

fund managers, annual report preparers and
individual investors in refining the weighting of the
risk items