Muttanachai Suttipun, Gavin John Nicholson
The study aimed to investigate the extent and level of risk management disclosures of listed companies in the Stock Exchange of Thailand (SET), and to examine the relationship between risk management disclosures and financial performance. Using quota sampling, 160 firms were used as the samples. Content analysis by word counting was used to quantify risk management disclosures in corporate annual reports during 2017 to 2019, while financial performance and corporate characteristics were collected from samples’ websites. Descriptive analysis, correlation matrix, and panel data analysis by pooled OLS regression were used to analyze data. As the results, the study found that the average level of risk management disclosures in annual reports of Thai listed companies during 2017 to 2019 were 2226.11 words. In more details, operational risk management disclosure was the most common disclosure following by following by financial risk, legal and regulatory risk, contingency risk, and major shareholder risk. Moreover, the study found the positive relationship between major shareholder risk management disclosure and financial performance, while financial risk management disclosure had negative influenced on financial performance. The study demonstrated agency theory that can be used to explain risk management disclosures in Thailand where the disclosures were not mandatory reporting yet.