University of Twente Student Theses


Differences in liquidity and credit risk reporting between German automotive companies

Rittinghaus, Aurelius J.C. (2022) Differences in liquidity and credit risk reporting between German automotive companies.

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Abstract:Managing liquidity and credit risks is of crucial importance for a company’s further development and survival. The differences in corporate risk reporting between the 4 major companies are analysed in this research on the basis of a survey of the German automotive sector, and by doing a qualitative content analysis of the major players’ risk and opportunity sections in their annual reports. The automotive companies BMW, Mercedes-Benz, VW, and Porsche have been chosen for this analysis as they are from a sector that is subject to fast-moving developments and fierce competition and as they are all operating under the same regulatory framework and the same legislation. As the basis of the analysis the annual reports of 2019 to 2021 are used. The framework used to categorize the risk disclosures published is that provided by Svetlova (2021). The statements extracted from the reports are categorized as either substantial or symbolic. Based on this categorisation levels of coding from 1 to 3 are applied to each statement, to evaluate their content qualitatively. The results show that statistically the companies had reported their liquidity and credit risks in a mostly substantial manner, nevertheless there were significant differences in reporting quality and quantity between the 4 companies chosen. However, even if statistically the companies had reported in a mostly substantial fashion, the information disclosed in their annual reports is still insufficient in providing users with enough information to base a decision upon. This is due to the lack of quantifications as well as the lack of yearly adaptations of substantial information.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:International Business Administration BSc (50952)
Keywords:Risk reporting, Automotive sector, Germany, Liquidity risk, Credit risk, Qualitative analysis
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