**7. Results and Discussion**

### *7.1. Aggregated Disclosure Index of Financial Risks*

Figure 1 shows the distribution of total disclosure indices during the study period of 2010 to 2015 for the 48 sample companies. The deep yellow line indicates the average total disclosure index of

the sample. On average, the overall financial risk disclosure index is 0.44 during the study period of 2010 to 2015. The analysis of the distribution of the total disclosure indices for the 48 companies in the sample, for the period, shows that more than 56 percent of companies (27) have a lower index value than the average and the balance, about 44 percent of companies (21), have a higher index than the average value. The result indicates that despite compulsion with the introduction of BFRS-10, in 2010, most of the listed manufacturing companies have ye<sup>t</sup> to disclose financial risk consistently and uniformly.

**Figure 1.** Distribution of overall financial risk disclosure indices during study period for each company in the sample.

### *7.2. Specific Disclosure Indices of Financial Risks: Analysis of Level*

The analysis of levels of the disclosure indices relating to specific financial risks for each sample company is illustrated in Figure 2. The sample 48 companies are placed along the x-axis, and the accumulated level of financial risk for the five disclosure indices is on the y-axis. From the analysis of the graph, it is clear that financial risk disclosure is treated in heterogeneous ways by the companies. Levels of the individual indices show no common practice among the companies. This observed relatively heterogeneous practice of disclosing financial risk is important to the institutional settings of emerging economies and markets such as Bangladesh, because audited annual financial reports are the primary source of information for investors. Thus, more uniform and standardized financial risk disclosures enhance comparability of such disclosures and should be value-relevant to investors.

**Figure 2.** Accumulation of disclosure indices for individual financial risk during the study period of 2010 to 2015 for each company.

### *7.3. Specific Disclosure Indices of Financial Risks: Analysis of Composition*

The analysis of the composition of the disclosure indices regarding specific financial risks for each individual company in the sample is illustrated in Figure 3. The sample companies are placed along the x-axis, and the percentage level of financial risk for the five disclosure indices is on the y-axis. Like level, the composition of aggregated value of financial risk disclosure shows no common practice among the companies with some diversity in disclosing financial risks.

**Figure 3.** Composition of the disclosure indices for individual financial risks during the study period of 2010 to 2015 for each company.
