Advances in Consumer Research
Issue:5 : 2607-2614
Original Article
How Investors Perceive the Corporate Risk Disclosure? - An Empirical Analysis from India
 ,
1
Research Scholar, Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar, Haryana.
2
Professor, Haryana School of Business, Guru Jambheshwar University of Science & Technology, Hisar, Haryana.
Abstract

Corporate risk disclosure (CRD) has become an essential component of corporate reporting as investors increasingly depend on transparent and decision-useful information to interpret uncertainty. Although regulatory initiatives have strengthened disclosure requirements, limited empirical evidence exists on how investors assess the qualitative attributes of CRD. This study examines the perceptual dimensions that shape investors’ evaluation of risk disclosures. Using a structured questionnaire comprising sixteen statements, exploratory factor analyses was conducted on data collected from 300 investors from India. The results reveal four distinct factors namely, decision usefulness, performance evaluation, trust & reputation and regulation & transparency that influence investor perceptions of CRD quality. These findings highlight that effective CRD extends beyond compliance and depends on the clarity, specificity and credibility of information provided. The study provides empirical evidence on the evaluative criteria used by investors, offering insights for companies, regulators and policymakers seeking to enhance risk communication and strengthen investor confidence

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