scholarly journals CORPORATE GOVERNANCE AND BUSINESS PERFORMANCE: THE MODERATING ROLE OF EXTERNAL AUDIT QUALITY

2020 ◽  
Vol 2 (2) ◽  
pp. 34-44
Author(s):  
Foong Seng Wong ◽  
Yuvaraj Ganesan ◽  
Anwar Allah Pitchay ◽  
Hasnah Haron ◽  
Ratih Hendayani
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Business Performance ◽  
Audit Quality ◽  
Internal Audit ◽  
External Audit ◽  
Management Committee ◽  
Age Diversity ◽  
The Relationship ◽  
Risk Management Committee

The purpose of this study is to investigate the relationship of corporate governance attributes, i.e. board size, age diversity, risk management committee and internal audit function with the business performance of the organisation. In addition, this study also examines the role of external audit quality as a moderating effect in the relationship between corporate governance and business performance. The study adopted a quantitative approach and cross-sectional design where it used a sample of 120 listed companies in Malaysia for the year 2016. Data is collected based on secondary data which is annual report year 2016. The result shows board size and the existence of risk management committee are negatively significant related to business performance while the other variables such as age diversity and internal audit function do not have an impact on business performance. Unexpectedly, external audit quality does not play a moderating role in related corporate governance and business performance. The study contributes to the understanding of the relationship between corporate governance and business performance in the developing country. The paper also provides related insight for regulators, policymakers and investors of emerging markets such as Malaysia. The study is the pioneer to understand the relationship of the risk management committee to business performance and moderating effect of external audit quality.

scholarly journals Hedging Activities Information and Risk Management Committee Effectiveness: Malaysian evidence

2018 ◽  
Author(s):  
Azrul Bin Abdullah ◽  
Ku Nor Izah Ku Ismail
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Significant Influence ◽  
Statistical Models ◽  
Voluntary Disclosure ◽  
Annual Reports ◽  
Management Committee ◽  
Corporate Governance Mechanisms ◽  
The Relationship ◽  
Risk Management Committee

This study examines the extent of information about hedging activities disclosures within the annual reports of Main Market companies listed on Bursa Malaysia. The extent of hedging activities disclosures is captured through a 32-item-template, which consists of a mandatory and voluntary disclosure scores. The results of this study indicate that the extent of information on hedging activities disclosure is still insufficient among the sampled companies even though the disclosure scored is quite high. This study also examines the relationship between the existence of risk management committee (RMC), its characteristics and the extent of information on hedging activities disclosure in two separate statistical models. The regression results imply that the existence of RMC is positive but does not significantly influence the extent of information on hedging activities disclosure. However its characteristics (i.e. RMC independence and RMC meeting) have a significant influence. The findings may provide some meaningful insights to regulators, policymakers and researchers, towards the establishment of RMC as a part of the internal corporate governance mechanisms. In addition to its existence, the effectiveness of RMC also needs to be emphasised.

scholarly journals Board characteristic and corporate environmental reporting in Nigeria

2019 ◽  
Vol 4 (1) ◽  
pp. 2-17 ◽  
Author(s):  
Usman Shehu Aliyu
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Significant Relationship ◽  
Board Independence ◽  
Environmental Reporting ◽  
Management Committee ◽  
Content Type ◽  
Quality Reporting ◽  
Corporate Environmental Reporting ◽  
Risk Management Committee

Purpose The issue that revolves around corporate governance and corporate environmental reporting (CER) has always been an essential element deliberated upon globally. A good corporate governance mechanism instills an investor’s confidence and ensures a transparent process that facilitates more disclosures and quality reporting. Precisely, the purpose of this paper is to investigate the relationship between corporate governance variables, namely, board size, board independence, board meeting (BM), risk management committee composition and CER in Nigeria. This study utilized the data obtained from the annual reports of 24 non-financial public listed companies in the Nigeria Stock Exchange comprising three sectors, namely, industrial goods, natural resources and oil & gas for the period of 2011–2015. The model of this study is theoretically based on agency theory. In analyzing data, this study utilized panel data analysis. Based on the Hausman test, the random effect model was used to examine the effect of predictors on CER. The result indicates a positive significant relationship between board independence and CER. Similarly, a positive significant relationship between BM and CER is revealed in the study. However, there is no significant relationship between other hypothesis variables and CER. Finally, the study provides suggestions for future research and several recommendations for regulators, government and accounting professional bodies. Design/methodology/approach The data was analysed using statistics. Findings The result indicates a positive significant relationship between board independence and CER. Similarly, a positive significant relationship between BM and CER is revealed in the study. However, there is no significant relationship between other hypothesis variables and CER. Originality/value There are no prior studies linking risk management committee with CER.

scholarly journals Can the risk management committee improve risk management disclosure practices in Indonesian companies?

2021 ◽  
Vol 18 (3) ◽  
pp. 204-213
Author(s):  
Linda Agustina ◽  
Kuat Waluyo Jati ◽  
Niswah Baroroh ◽  
Ardian Widiarto ◽  
Pery N. Manurung
Keyword(s):  
Risk Management ◽  
Firm Size ◽  
Ownership Concentration ◽  
Manufacturing Companies ◽  
Corporate Risk Management ◽  
Management Committee ◽  
Management Disclosures ◽  
Corporate Risk ◽  
The Relationship ◽  
Risk Management Committee

This study examines the role of the risk management committee as a moderating variable. The risk management committee will moderate the relationship between firm size, profitability, ownership concentration, and the size of the Enterprise Risk Management (ERM) disclosure board. The study is based on agency theory, which discusses the relationship between management and company owners and shareholders. The research sample consisted of 56 manufacturing companies in Indonesia with 224 units of analysis obtained using the purposive sampling technique. It has been proven that the risk management committee can moderate the relationship between firm size and ERM disclosure and ownership concentration and ERM disclosure. Company size is known to affect the disclosure of risk management in a company. But ownership concentration shows different things, that is, it does not affect corporate risk management disclosures. The results also show that the risk management committee cannot moderate the relationship between profitability and the size of the board of commissioners on the company’s risk management disclosures. It has also not been proven that profitability and the size of the board of commissioners directly affect corporate risk management disclosures. Thus, it can be stated that the risk management committee plays a role in controlling the extent of the company’s risk management disclosures; this is necessary to maintain stakeholder trust in the company.

scholarly journals The association between corporate governance and corporate disclosure: A critical review

2013 ◽  
Vol 3 (3) ◽  
pp. 94 ◽  
Author(s):  
Mohamed Aboelhamd Omran ◽  
Marwa Abdelrazik
Keyword(s):  
Corporate Governance ◽  
Critical Review ◽  
Audit Quality ◽  
Internal Audit ◽  
Future Research ◽  
Corporate Disclosure ◽  
Earning Forecast ◽  
Internal Governance ◽  
Audit Firm ◽  
The Relationship

This study provides a critical review of different techniques used in recent accounting literature to investigate the association between corporate governance and corporate disclosure. Therefore, the main purpose of this study is to help future researchers to identify examples and to select suitable practices or to develop their own ones. It also provides contest of current issues related to the relationship between corporate disclosure and corporate governance and identifies gaps in the current literature that future research may aim to cover. The study examines 34 articles published during the 2007-2013 period. The review of these articles concludes that most of these published studies examined the association between corporate disclosure and one or more of board of directors, ownership construction and audit firm. The current study suggests that researchers can also examine the association between internal audit quality as an internal governance and corporate disclosure. The study reveals that researchers used a disclosure index and content analysis to measure corporate disclosure. However, other techniques can be applied as management earning forecast and the number of analysts.

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