Corporate risk disclosures: The influence of institutional shareholders and the audit committee

The extent to which corporations provide transparency about the management and performance of a range of broad types of risk is a governance issue. The corporate regulation of narrative disclosures about risk complexities is lacking in Australia, leaving the practice of corporate risk reporting dependent upon incentives for management to undertake it voluntarily. This study focuses on pressures on management rendered by two key players in the company's principal-agency relationships. These players are the company's large professionally-managed institutional shareholders (principal), and the audit committee of the board (agent)