The Impact of Crisis on Corporate Risk Disclosure: Evidence from Indian Firms During the COVID-19 Pandemic

Corporate risk disclosure is essential for enhancing transparency and informing stakeholders about potential uncertainties, especially during economic crises. This study investigates how crises, particularly the Covid-19 pandemic, influence the risk disclosure levels of Indian firms. Using a sample of Nifty 50 over six years (2017–2023) the study finds that firms increase risk disclosures during crises, supporting the argument that economic uncertainty compels organisations to enhance transparency. These findings contribute to the literature on corporate transparency during economic uncertainty and offer insights for policymakers, investors, and corporate managers. The study emphasises the need for firms to adopt proactive risk communication strategies to maintain stakeholder confidence during crises.