The impact of Shariah compliance on risk disclosure practices of non-financial firms in Pakistan
摘要
This study aims to examine the impact of Shariah compliance on risk disclosure practices of non-financial firms in Pakistan. This study utilized computational content analysis to examine the degree of risk disclosure in the annual reports of each firm. This research employed the bag-of-words approach inside the computational content analysis framework to examine the degree of risk-related disclosures in annual reports. The study classifies risk disclosure into three categories: financial risk, operational risk, and integrity risk disclosure. Furthermore, the study employs separate panel regression models to assess the impact of Shariah compliance on both aggregate and individual risk disclosures. One hundred forty non-financial publicly listed enterprises were examined throughout a decade (2014–2023). The findings indicate that Shariah compliance positively influences overall, financial, operational, and integrity risk disclosure. This study is a novel study of the impact of Shariah compliance on risk disclosure procedures among non-financial publicly listed companies in Pakistan, while prior research has predominantly focused on the risk disclosure of financial firms only.