An evaluation of users and preparers perceptions on the management of risk disclosures: a service quality perspective

Azuma, Zaneta A. (2021) An evaluation of users and preparers perceptions on the management of risk disclosures: a service quality perspective. PhD thesis, University of Glasgow.

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The extant risk disclosure literature has explored the determinants and incentives for risk disclosure. However, no study to date has examined the design process of risk disclosures. The purpose of This study is to fill this gap, while using a qualitative case study approach within the context of a UK listed Bank.
The research examines the management of risk disclosures, with particular focus on users’ expectations for risk disclosure quality, and the degree to which these are incorporated in the decision choices taken by management when deciding what to disclose and what not to disclose. It explores a set of discrepancies between what a user of risk disclosure expects of the quality of such an information and their perceptions on the actual disclosures they get mainly from the annual report and the pillar 3 risk disclosure report.
Drawing on the Gaps Model of Service Quality from the marketing literature (Parasuraman et al., 1985; Zeithaml et al., 2002;2016), it is argued that this overarching discrepancy is influenced by the degree to which preparers perceive and understand the expectations of their users and the disclosure designs they establish to reflect how they have perceived these expectations. Even though the authors of the Gaps Model refer to disclosure designs as the decision choices made by management in relation to how the disclosures should be presented, the Model provides little scope for examining these decision choices. For this reason, the Gaps Model is amalgamated with the Disclosure Management Framework from the accounting literature (Gibbins et al., 1990; Mayorga, 2013; Johansen and Plenborg, 2018) to provide an explanation on how the internal decision - making process is undertaken by management when translating their perceptions of users’ expectations into risk disclosure quality specifications and a new framework is developed in the process.The findings indicate that even though user participants express a desire for an access to the bank’s regulatory reporting, reduction in the volume of the disclosures and reliability of the information provided, it is evident that they recognise these may not always be possible.
The findings support the notion that user expectations for the quality of risk disclosure is a key antecedent to the corporate disclosure process. However, in meeting these expectations, management faces multiple challenges when deciding what to disclose and what not to disclose including the risk of misinterpretation and the disclosure of commercially sensitive information. It is also evident that, irrespective of users’ expectations, there are a number of challenges embedded within their risk reporting process.

Item Type: Thesis (PhD)
Qualification Level: Doctoral
Keywords: Risk disclosure, risk governance.
Subjects: H Social Sciences > HG Finance
Colleges/Schools: College of Social Sciences > Adam Smith Business School > Accounting and Finance
Supervisor's Name: Tsalavoutas, Professor Ioannis and Aleksanyan, Dr. Mark
Date of Award: 2021
Depositing User: Dr Zaneta Azuma
Unique ID: glathesis:2021-82224
Copyright: Copyright of this thesis is held by the author.
Date Deposited: 26 May 2021 15:53
Last Modified: 15 Nov 2022 09:51
Thesis DOI: 10.5525/gla.thesis.82224

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