Risk reporting practices by the aviation industry

Abstract

This study analyses the extent of voluntary business risk disclosure from airlines-aviation companies in Asia-Pacific Economic Cooperation (APEC) countries over the period of three years (2009-2011). The results of this study indicate that level of business risk disclosure is relatively consistent high level in 62.71%-64.71%. Multiple regression analysis provides evidence that country cluster, size, leverage and load factor are positively significantly associated with business risk disclosure while government ownership impact negatively. Further ANOVA analysis showed that the highest business disclosure are from Anglo-Saxon airlines/aviation companies and the lowest voluntary business risk disclosure shown by those of emerging markets