Do Mutual Funds Walk the Talk? A Textual Analysis of Risk Disclosure by Mutual Funds

2021 ◽  
Author(s):  
Jinfei Sheng ◽  
Nan Xu ◽  
Lu Zheng
Keyword(s):  
Mutual Funds ◽  
Textual Analysis ◽  
Risk Disclosure

Classifying the Contents of Cybersecurity Risk Disclosure through Textual Analysis and Factor Analysis

2020 ◽  
Author(s):  
Arion Cheong ◽  
Kyunghee Yoon ◽  
Soohyun Cho ◽  
Won Gyun No
Keyword(s):  
Factor Analysis ◽  
Internal Control ◽  
Textual Analysis ◽  
Quantitative Methodology ◽  
Risk Disclosure ◽  
Related Factors ◽  
Negative Effect ◽  
Internal Control Weaknesses ◽  
Risk Disclosures

Cybersecurity has garnered much attention due to the increasing frequency and cost of cybersecurity incidents in recent years and become a significant concern for organizations and governments. Regulators such as the Security and Exchange Commission (SEC) have also shown an interest in cybersecurity and the quality of cybersecurity risk disclosures. This paper examines the informativeness of cybersecurity risk disclosures when cybersecurity incidents or related internal control weaknesses are reported. In particular, we propose a quantitative methodology, which is a combination of textual analysis and factor analysis, for classifying cybersecurity risk disclosures into nine factors. Our results show different disclosing patterns among firms depending on whether they had cybersecurity incidents and internal control weaknesses. Further, our analysis indicates that firms disclose control-related factors to mediate the negative effect of disclosing vulnerability-related factors. This study provides various stakeholders, including investors, regulators, and researchers, with insight into the informativeness of cybersecurity risk disclosures.

Comparing the Cybersecurity Risk Disclosures of US and Foreign Firms

2021 ◽  
Author(s):  
Thomas Calderon ◽  
Lei Gao
Keyword(s):  
Key Words ◽  
Textual Analysis ◽  
Home Bias ◽  
Foreign Firms ◽  
Risk Disclosure ◽  
Disclosure Regulation ◽  
The Us ◽  
Risk Disclosures

This study explores the cybersecurity risk disclosure differences between foreign firms listed in the US and US firms. We first extract cybersecurity risks disclosures text with a Python program based on a list of cybersecurity key words. We then perform textual analysis of the cybersecurity risk disclosures in foreign firms’ 20-F filings and US firms’ 10-K filings. During our study period, we observe that foreign firms disclose more about their cybersecurity risks and their disclosures are more readable than US firms. Foreign firms also use more numbers, fewer uncertainty words and fewer litigious language than their US counterparts.  In general, our study suggests that cybersecurity risk disclosures made by foreign firms are clearer and more specific than those made by US firms. This finding could have implications for disclosure regulation and home bias research.

scholarly journals Readability of Operational Risk Disclosures of Banks

2019 ◽  
Vol 14 (3) ◽  
pp. 108-116 ◽  
Author(s):  
Mocanu Mihaela ◽  
Grose Christos ◽  
Kargidis Theodoros
Keyword(s):  
Financial Institutions ◽  
Commercial Banks ◽  
Textual Analysis ◽  
Banking System ◽  
Operational Risk ◽  
Risk Disclosure ◽  
Financial Firms ◽  
Risk Disclosures ◽  
Technical Terms

AbstractOperational risk has been acknowledged as a major source of material failures in financial firms. Despite the increased concern of financial institutions and their stakeholders on this topic, the literature that deals specifically with the operational risk disclosure in the banking system is scarce. The present research investigates the readability in transparency reports of Romanian banks, and focuses in particular on the operational risk disclosures. The sample consists of 13 commercial banks operating in Romania in 2017. A concise transparency report is characterized by clarity in the expression of concepts, usage of as few words as possible, limited use of technical terms and avoidance of highly generic disclosures. Drawing upon prior research, we expect that banks with lower levels of performance are foggier (i.e. less concise) in order to improve the image resulting from their transparency reports. Additionally, it is expected that the longer an entity has been established, the higher the quality of disclosures, thus the transparency reports of older banks are more concise compared to the recently established banks. Moreover, we posit that larger banks are more likely to provide more readable reports. The research is part of the larger debate related to disclosure and its various impacts on both the recipient and the giver of information. The main contribution is the innovative approach consisting in the textual analysis of transparency risk reports. To the best of our knowledge, we are not aware of any study that examined conciseness in the setting of operational risk disclosure by banks.

An exploratory study of intangibles risk disclosure in annual reports of banking companies from the UK, US, Germany and Italy - Some descriptive insights

2013 ◽  
pp. 81-120 ◽  
Author(s):  
Susanne Durst
Keyword(s):  
Intellectual Capital ◽  
Exploratory Study ◽  
The United States ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Related Risk ◽  
Potential Benefits ◽  
Report Data ◽  
Key Drivers ◽  
The Uk

Intangibles are viewed as the key drivers in most industries, and current research shows that firms voluntarily disclose information about their investments in intangibles and their potential benefits. Yet little is known of the risks relating to such resources and the disclosures firms make about such risks. In order to obtain a more balanced and complete picture of firms' activities, information about the risky side of their intangibles is also needed. This exploratory study provides some descriptive insights into intangibles-related risk disclosure in a sample of 16 large banks from the United States (US), United Kingdom (UK), Germany and Italy. Annual report data is analyzed using the three Intellectual Capital dimensions. Study findings illustrate the variety of intangibles-related risk disclosure as demonstrated by the banks involved.

The Role of Muslim Women in Civil Society In Promoting Values and Principles for Building Peace: Action Guide from The Qur’ān

Sains Insani ◽  
2019 ◽  
Vol 4 (1) ◽  
pp. 30-36
Author(s):  
Che Amnah Bahari ◽  
Fatimah Abdullah
Keyword(s):  
Civil Society ◽  
Lifelong Learning ◽  
Significant Role ◽  
Textual Analysis ◽  
Muslim Women ◽  
Peace Building ◽  
Analysis Method ◽  
Pluralistic Society ◽  
Women And Children

The whole world, the Muslim in particular has witnessed conflicts in different areas, which have hindered the developmental efforts of the nations concerned. It should be learned that most victims of these conflicts are women and children. This article attempts to elaborate the role of Muslims Women as a crucial segment in civil society in initiating peace building through nurturing process. It maintains that the adoption of the principles and values derived from the Qur’ān and Sunnah of the Prophet is necessary as a process of lifelong learning.  Those identified values constituted the framework of this article and it adopts the textual analysis method.   This article concludes that through the implementation of those values and frameworks for peace building, women as one of the important segments of civil society are able to play significant role towards initiating peace building and promoting peaceful co-existence in pluralistic society. Abstrak: Dunia Islam khususnya telah menyaksikan konflik di pelbagai daerah yang berbeza. Konflik ini telah menghalang usaha kearah pembangunan Kawasan yang berkenaan. Kebanyakan mangsa konflik ini adalah wanita dan kanak-kanak. Artikel ini cuba untuk menghuraikan peranan wanita Islam sebagai segmen penting dalam masyarakat madani dalam membangun proses kedamaian dengan mendidik dan memupuk prinsip dan nilai murni janaan al-Qur’an. Penggunaan prinsip dan nilai yang dikutip dari ayat-ayat Qur'an dan hadis Rasulullah adalah keperluan yang mendesak sebagai wadah bagi proses pembelajaran sepanjang hayat. Nilai-nilai yang dikenal pasti merupakan rangka kerja artikel ini, dan metod yang dirujuk adalah analisis teks. Artikel ini menyimpulkan bahawa melalui pelaksanaan nilai-nilai dan kerangka kerja Islam bagi proses kedamaian, wanita Islam dalam masyarakat madani mampu memainkan peranan penting dalam memulakan pembinaan keamanan dan menggalakkan kehidupan yang harmonis, sejahtera dan saling bantu membantu dalam masyarakat majmuk.

Determinants of Corporate Risk Disclosure Practice: The Case of Islamic Banks in Gulf Cooperation Council Region

2018 ◽  
Vol 15 (1) ◽  
pp. 16-38 ◽  
Author(s):  
Samir Srairi
Keyword(s):  
United Arab Emirates ◽  
Composite Index ◽  
Gulf Cooperation Council ◽  
Risk Information ◽  
Rate Of Return ◽  
Islamic Banks ◽  
Risk Disclosure ◽  
Gulf Region ◽  
Corporate Risk ◽  
Level Of Risk

The paper develops a framework to explore the risk disclosure practices of 29 Islamic banks operating in the Gulf Cooperation Council countries over the period of 2013-2016 and examines the potential factors which might be affecting risk disclosure. To analyze the level of risk disclosure, the paper develops a composite index by using the content analysis technique. We also employ OLS technique to examine factors affecting Islamic banks’ risk disclosure. The results indicate a very high difference in risk disclosure between countries. Only two countries, the United Arab Emirates and Bahrain, have a higher level of risk disclosure. The findings also suggest that reporting on some risk disclosure types especially displaced commercial risk and rate of return risk is very low. The regression results show that Islamic banks with a stronger set of corporate governance mechanisms and an active Shariah board appear to disclose more risk information. Other factors that influence risk disclosure practices of Islamic banks are bank size, leverage, cross-border listings and the level of political and civil regression. The study recommends that Islamic banks have to revise their communication strategies and provide more risk information related to rate of return risk and display commercial risk. In addition, GCC regulators should establish risk disclosure regulations which have to become mandatory for all Islamic banks. To the best of our knowledge, the paper provides the first analysis related to the determinants of corporate risk disclosures of Islamic banks in the Arab Gulf region.

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