**8. Conclusions and Limitations**

This study examines the level of financial risk disclosure of publicly traded manufacturing companies by investigating the association between the level of financial risk disclosure and firm specific characteristics. The results of the content analysis show that the sample companies treat financial risk disclosure in heterogeneous and less standardized manners. Although compliance with BFRS-7 requires that public companies uniformly disclose financial risk, our results show that there is no common practice in this regard. Thus, a more uniform and standardized financial risk disclosure can improve corporate disclosure in compliance with BFRS-7 and enhance comparability of financial risk disclosure. The results also confirm that the companies tend to provide more information on liquidity risk and less information about interest rate risk and currency risk.

The regression results show that firm size, financial performance, and auditor type are positively and significantly associated with the level of financial risk disclosure in annual reports. These results are consistent with those of various previous empirical studies worldwide (Amran et al. 2008; Das et al. 2015; Linsley and Shrives 2006). The results sugges<sup>t</sup> that firm size, performance, and auditor type are the main determinants of risk disclosure and are the driving factors for the selected companies to increase the level of financial risk disclosure. The results reveal that financial leverage, liquidity, and industry type have no association with the level of financial risk disclosure, which are consistent with findings of prior studies (e.g., Alsaeed 2006). As a result, these characteristics have no relevance to disclosing financial risk of the publicly traded manufacturing companies. Our results contribute to the business and accounting literature by providing an initial understanding of financial risk disclosure practices in Bangladesh, where the risk disclosure practice is still in an early stage.

There are, however, several limitations of this study. First, the study focuses on 30 selected disclosure items. Moreover, the choice of the items does not reflect their level of importance as perceived by financial information users and the coding approach is subject to coder bias. Second, the un-weighted or binary approach is used to measure the level of financial risk disclosure, which may not reflect the quality of financial risk disclosure. Third, the study is confined to one country in emerging markets and economies. Fourth, the information regarding risk can be provided in sources other than annual reports. Finally, a potential endogenous concern may exist in our analysis given the sample size in relation with the estimated coefficients. Thus, the results and their policy, practical, and research implications should be interpreted with caution, considering these potential limitations. Future research should address financial risk disclosure in other developing countries and investigate both the quality and quantity of financial risk disclosure.

**Author Contributions:** Authors have equally contributed to the paper. Research questions and hypothesis and research method were developed by S.Z.H., R.K.D. performed the analyses and Z.R. prepared the manuscript.

**Funding:** This research received no external funding.

**Conflicts of Interest:** The authors declare no conflicts of interest.
