The comparative moderating effect of risk management committee and audit committee on the association between voluntary risk management disclosure and firm performance

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

The purpose of this study is to examine the comparative moderating effects of two separate risk governance mechanisms on the relationship between voluntary risk management disclosure (VRMD) and firm performance (FP). This study utilizes content analysis method to collect VRMD data, while FP is measured based on investors' perspective, represented by Tobin's Q. Multivariate statistical tests show that the existence of Risk Management Committee (RMC) augmented the association between VRMD and FP. However, the appointment of audit committee (AC) and the quality of AC which are represented by size, independence, education and number of AC meetings, do not have any moderating effect on the relationship between VRMD and FP. The findings suggest that risk governance mechanisms do matter to investors in evaluating risk management information. The findings also provide empirical evidence that should be of interest to the management of company and regulatory bodies in terms of deciding upon whether or not to establish RMC as a separate committee from AC.

Original languageEnglish
JournalJurnal Pengurusan
Volume51
Publication statusPublished - 1 Jan 2017

Fingerprint

Moderating effect
Disclosure
Audit committee
Firm performance
Risk management
Governance mechanisms
Risk governance
Investors
Content analysis
Statistical tests
Tobin's Q
Education
Empirical evidence
Management information

Keywords

  • Audit committee
  • Non-financial industry
  • Risk governance
  • Risk management committee
  • Voluntary risk management disclosure

ASJC Scopus subject areas

  • Business and International Management
  • Accounting
  • Business, Management and Accounting (miscellaneous)

Cite this

@article{99074ac9fb734fe29834bd2900320c6f,
title = "The comparative moderating effect of risk management committee and audit committee on the association between voluntary risk management disclosure and firm performance",
abstract = "The purpose of this study is to examine the comparative moderating effects of two separate risk governance mechanisms on the relationship between voluntary risk management disclosure (VRMD) and firm performance (FP). This study utilizes content analysis method to collect VRMD data, while FP is measured based on investors' perspective, represented by Tobin's Q. Multivariate statistical tests show that the existence of Risk Management Committee (RMC) augmented the association between VRMD and FP. However, the appointment of audit committee (AC) and the quality of AC which are represented by size, independence, education and number of AC meetings, do not have any moderating effect on the relationship between VRMD and FP. The findings suggest that risk governance mechanisms do matter to investors in evaluating risk management information. The findings also provide empirical evidence that should be of interest to the management of company and regulatory bodies in terms of deciding upon whether or not to establish RMC as a separate committee from AC.",
keywords = "Audit committee, Non-financial industry, Risk governance, Risk management committee, Voluntary risk management disclosure",
author = "Maizatulakma Abdullah and {Abdul Shukor}, Zaleha",
year = "2017",
month = "1",
day = "1",
language = "English",
volume = "51",
journal = "Jurnal Pengurusan",
issn = "0127-2713",
publisher = "Penerbit Universiti Kebangsaan Malaysia",

}

TY - JOUR

T1 - The comparative moderating effect of risk management committee and audit committee on the association between voluntary risk management disclosure and firm performance

AU - Abdullah, Maizatulakma

AU - Abdul Shukor, Zaleha

PY - 2017/1/1

Y1 - 2017/1/1

N2 - The purpose of this study is to examine the comparative moderating effects of two separate risk governance mechanisms on the relationship between voluntary risk management disclosure (VRMD) and firm performance (FP). This study utilizes content analysis method to collect VRMD data, while FP is measured based on investors' perspective, represented by Tobin's Q. Multivariate statistical tests show that the existence of Risk Management Committee (RMC) augmented the association between VRMD and FP. However, the appointment of audit committee (AC) and the quality of AC which are represented by size, independence, education and number of AC meetings, do not have any moderating effect on the relationship between VRMD and FP. The findings suggest that risk governance mechanisms do matter to investors in evaluating risk management information. The findings also provide empirical evidence that should be of interest to the management of company and regulatory bodies in terms of deciding upon whether or not to establish RMC as a separate committee from AC.

AB - The purpose of this study is to examine the comparative moderating effects of two separate risk governance mechanisms on the relationship between voluntary risk management disclosure (VRMD) and firm performance (FP). This study utilizes content analysis method to collect VRMD data, while FP is measured based on investors' perspective, represented by Tobin's Q. Multivariate statistical tests show that the existence of Risk Management Committee (RMC) augmented the association between VRMD and FP. However, the appointment of audit committee (AC) and the quality of AC which are represented by size, independence, education and number of AC meetings, do not have any moderating effect on the relationship between VRMD and FP. The findings suggest that risk governance mechanisms do matter to investors in evaluating risk management information. The findings also provide empirical evidence that should be of interest to the management of company and regulatory bodies in terms of deciding upon whether or not to establish RMC as a separate committee from AC.

KW - Audit committee

KW - Non-financial industry

KW - Risk governance

KW - Risk management committee

KW - Voluntary risk management disclosure

UR - http://www.scopus.com/inward/record.url?scp=85044275350&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85044275350&partnerID=8YFLogxK

M3 - Article

VL - 51

JO - Jurnal Pengurusan

JF - Jurnal Pengurusan

SN - 0127-2713

ER -