Non-financial Information and Risk Disclosure: Compliance Levels with Mandatory Requirements in the Italian Market

The study examines compliance levels of non-financial information (NFI thereafter) of 50 Italian listed companies, with a special emphasis on risk disclosure. We determine whether and to what extent companies are compliant with the Directive 2014/95/EU on NFI and risk disclosures. To achieve such objectives, the study develops a NFI disclosure score based on 165 items and analyzes the 2017 nonfinancial statements in accordance with the law; overall, 8,250 text-units are collected. With reference to risks and opportunities, the findings suggest that companies unanimously identify potential risks but rarely disclose the potential dangers of these risks and the boundaries at which these risks may occur, which, in turn, may negatively influence business activities.