The study of risk disclosure is a vital area that has garnered significant interest. This research is considered a contribution to the previous accounting literature that dealt with the subject of corporate risk disclosure that provide key information to stakeholders, such as investors and lenders, to facilitate the achievement of a company’s long-term goals through its short-term accomplishments
This study aim is to measure the impact of both the systematic risk disclosure (SRD), and the idiosyncratic risk disclosure (IRD), separately supporting the heterogeneity hypothesis of the two categories of risk, on the Dividends policy(DP) and its effect on the firm value (FV) for non-financial companies listed on the Egyptian stock exchange. Using a sample of 75 companies from the period 2017 to 2022 which yielded 450 firm year observations.
Based on the results of the data analyizing, the researcher found a significant positive impact of both the SRD and the IRD on the DP, insignificant impact of the SRD on FV, positive impact of the IRD on the FV, significant positive of both the SRD and IRD on the firm value through the DP. This means that the DP positively moderates the SRD FV and IRD-FV relationship, indicating a complementary effect where dividends enhance the firm risk disclosure (SRD, IRD) positive signal. This research supports the signaling theory of firm risk disclosure. In essence, this research enhances understanding of the linkages between firm risk disclosure (systematic and idiosyncratic), dividend policy, and firm valuation outcomes.