scholarly journals Organisational Characteristics, Corporate Governance and Corporate Risk Disclosure: An Overview

2021 ◽  
Vol 15 (1) ◽  
pp. 77-92
Author(s):  
Musa Uba Adamu
Keyword(s):  
Corporate Governance ◽  
Empirical Research ◽  
Banking Sector ◽  
Academic Research ◽  
Listed Companies ◽  
Business Environment ◽  
Time Interval ◽  
Risk Disclosure ◽  
Major Factors ◽  
Corporate Risk

Certain attributes of corporate governance behaviour have been identified in academic research as major factors correlating with corporate risk disclosure amongst listed companies. This is in spite of the fact, however, that much of the empirical research in the area reveals mixed results. This study analyses corporate risk disclosure practice involving listed companies and investigates whether such diverse results are attributable to regulation, jurisdiction, operating industry, business environment, or the methodologies employed. We use risk disclosure, corporate governance and organisational characteristics keywords to search the relevant studies on which 46 empirical research papers were sampled, and employ a meta-analysis procedure to evaluate the findings of the previous empirical research. Our analyses reveal that firm size is the major organisational-specific characteristic affected by moderators, and board size and institutional investors are the major corporate governance variables that affect moderators. On the analysis of the nature of disclosure, financial risk information is higher for companies operating in the banking sector, while operational risk disclosure is higher for non-financial companies. Additionally, the study finds that the data generating procedure, time interval, diversity of sample and size, and the statistical technique employed are among the major factors that influence discrepancies among the prior studies. Such variables complicate stakeholders’ effort to comprehend the main factors that influence companies to unveil their risks profile. We propose that the current data collection process is labour intensive and time consuming, and promote the selection of smaller sample sizes compared to most of the existing research. It may be the case that constraints can be overcome through research that employs an automated procedure for analysis of textual data.

scholarly journals CORPORATE RISK DISCLOSURE: THE EFFECT OF CORPORATE GOVERNANCE

2021 ◽  
Vol 5 (1) ◽  
pp. 101-113
Author(s):  
Arisona Ahmad ◽  
Muhammad Muhammad ◽  
Dwi Narullia
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Stock Exchange ◽  
Company Size ◽  
Business Risk ◽  
Risk Disclosure ◽  
Initial Hypothesis ◽  
Corporate Risk ◽  
Corporate Business

ABSTRACT This research investigates the role of corporate governance on the disclosure of corporate business risk management with leverage and company size as control variables. Research data were taken from a company that classified as LQ 45 on the Indonesian stock exchange from 2015 to 2018. This research finds that disclosure of business risk management as a sign that management has managed the company with the good attitude increases along with increased corporate governance activities. Leverage and company size also affect company policies regarding the disclosure of corporate business risks. Overall, the results of this study are consistent with the assumption that corporate governance affects company policies regarding business risk disclosure. However, in contrast to the initial hypothesis, the composition of the board commissioners reduces the risk management disclosure activity in the company. This is because the board of commissioners considers that business risk disclosure can increase costs and reduce its competitive advantage so that investors will respond negatively. Apart from these variables, this study contributes to agency theory, where the findings of this study indicate the confirmation of the application of theory in the context of this study. ABSTRAK Penelitian ini menyelidiki peran tata kelola perusahaan terhadap pengungkapan manajemen risiko bisnis perusahaan dengan leverage dan size perusahaan sebagai variable control. Data penelitian meliputi perusahaan yang tergolong LQ 45 di bursa efek Indonesia dari tahun 2015 hingga 2018. Penelitian ini menemukan bahwa pengungkapan manajemen risiko bisnis sebagai tanda bahwa manajemen telah berperilaku baik dalam mengelola perusahaan meningkat seiring dengan peningkatan aktivitas tata Kelola perusahaan. Leverage dan ukuran perusahaan juga mempengaruhi kebijakan perusahaan mengenai pengungkapan risiko bisnis perusahaan. Secara keseluruhan, hasil penelitian ini konsisten dengan dugaan bahwa tata kelola perusahaan mempengaruhi kebijakan perusahaan mengenai pengungkapan risiko bisnis. Namun, berbeda dengan hipotesis awal komposisi dewan komisaris menurunkan aktivitas pengungkapan manajemen risiko diperusahaan. Hal ini dikarenakan dewan komisaris menimbang bahwa pengungkapan risiko bisnis dapat meningkatkan biaya serta menurunkan keunggulan kompetitif perusahaan sehingga akan direspon negatif oleh investor. Selain variabel tersebut, penelitian ini berkontribusi pada teori agensi dimana temuan yang ada menunjukkan konfirmasi dari penerapan teori di dalam konteks penelitian.

scholarly journals The Effect of Performance and Corporate Governance to Risk Disclosure among Listed Companies in Malaysia

2021 ◽  
Vol 16 (1) ◽  
pp. 119-161
Author(s):  
Ag Kaifah Riyard Kiflee ◽  
◽  
Mohd Noor Azli Ali Khan ◽  
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Annual Report ◽  
Listed Companies ◽  
Board Independence ◽  
Risk Disclosure ◽  
Interaction Variable ◽  
Variable Content ◽  
The Relationship ◽  
Disclosure Practice

The objective of this study was to determine the presence of risk information within the annual report of Malaysian non-financial listed companies and empirically extend the current literature of corporate governance and risk disclosure by incorporating an interaction effect in the model. The study found that listed companies in Malaysia experienced a positive upward trend in terms of risk disclosure practice for 10 years (2008-2017). A total of 166 companies were randomly extracted from Main Board of Bursa Malaysia from 2008 to 2017. This study used content analysis, descriptive statistics and multiple regression to explain the relationship between corporate governance and risk disclosure with the effect of the interaction variable. The study also found positive and significant relationship between board independence, board size and board gender with risk disclosure practice. It is also revealed that attainment discrepancies positively influence the relationship between corporate governance and risk disclosure practices among listed companies in Malaysia. Keywords: risk disclosure, annual report, corporate governance, interaction variable, content analysis

Corporate governance and risk reporting: Indian evidence

2017 ◽  
Vol 32 (4/5) ◽  
pp. 378-405 ◽  
Author(s):  
Ridhima Saggar ◽  
Balwinder Singh
Keyword(s):  
Corporate Governance ◽  
Listed Companies ◽  
Risk Information ◽  
Ownership Concentration ◽  
Regulatory Regime ◽  
Risk Disclosure ◽  
Firm Level ◽  
Content Type ◽  
Board Characteristics ◽  
The Relationship

Purpose This study aims to measure the extent of voluntary risk disclosure and examine the relationship between corporate governance firm level quality in the form of board characteristics and ownership concentration’s impact on risk disclosure in the annual reports of Indian listed companies. Design/methodology/approach The method adopted in this study is automated content analysis, which is applied to a sample of 100 listed Indian non-financial companies to find out the extent of risk disclosure. Further, multiple linear regressions have been applied to find out the relationship between corporate governance firm level quality in the form of board characteristics, ownership concentration and risk disclosure. Findings The findings reveal that the total number of positive risk keywords surpasses negative risk keywords disclosure. The corporate governance mainsprings, namely, board size and gender diversity have a positively significant effect on risk disclosure, whereas ownership concentration in the hands of the largest shareholder insignificantly affects risk disclosure, but identity of the largest shareholder having ownership concentration negatively affects disclosure of risk information in the case of Indian promoter body corporate, foreign promoter body corporate and non-institutions in comparison to family ownership. Research limitations/implications This study relied on a set of 39 risk keywords for measuring the extent of risk disclosure. Further, it uses a sample of 100 companies to examine the effect of corporate governance on risk disclosure at one point of time. However, a longitudinal study can help in understanding risk disclosure adopted by Indian listed companies in a better manner. Practical implications The findings have implications for regulatory bodies such as the Securities and Exchange Board of India, which needs to strengthen corporate governance norms with respect to board characteristics and keep a check on ownership concentration for improving risk disclosure by companies. Originality/value To best of the authors’ knowledge, this study is a preliminary attempt linking two research lines in India, that is, corporate risk disclosure and corporate governance quality in the form of board characteristics and ownership concentration. The study identifies corporate governance firm level qualities which lead to divulgation of risk information by the companies pointing towards strengthening of regulatory regime in the country for improved corporate governance regulations adopted by listed companies.

Risk disclosure, cost of capital and bank performance

2016 ◽  
Vol 24 (4) ◽  
pp. 476-494 ◽  
Author(s):  
Shamsun Nahar ◽  
Mohammad Azim ◽  
Christine Anne Jubb
Keyword(s):  
Banking Sector ◽  
Cost Of Capital ◽  
Equity Capital ◽  
Bank Performance ◽  
Risk Disclosure ◽  
Reporting Standard ◽  
Content Type ◽  
And Performance ◽  
The Cost ◽  
Corporate Risk

Purpose This study aims to examine the relationship among corporate risk disclosure, cost of equity capital and performance within banking institutions in a developing country setting. The authors argue that corporate risk disclosure reduces the cost of capital as investors attain better information and have confidence in the business and that less risk disclosure may generate ambiguity for potential stakeholders. Design/methodology/approach This study uses the population of all 30 listed banks on the Dhaka Stock Exchange, Bangladesh, for the years 2006 to 2012 and uses three-stage least-squares simultaneous equations to deal with endogeneity issues. Findings There is evidence that Bangladesh has voluntarily adopted the International Financial Reporting Standard 7 – Financial Instruments: Disclosures (IFRS 7) and Basel II: Market Discipline and that these standards enhance risk disclosure even where compliance is not compulsory. The cost of capital is found to be negatively associated with risk disclosure, which has an inverse relationship with bank performance. Originality/value This study provides a link between risk disclosure, cost of capital and performance. It fills a gap in the literature by providing a longitudinal study of risk disclosure in the banking sector of Bangladesh. This research also highlights the importance of appropriate risk disclosure for banks and suggests its importance in the process of fulfilling stakeholders’ demands.

scholarly journals Corporate Governance and Risk Management: A Study of Board Structure in Indonesian and Singapore Companies

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Muhammad Muhammad ◽  
Dwi Narullia
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Quantitative Information ◽  
Board Structure ◽  
Risk Disclosure ◽  
Corporate Risk Management ◽  
Analysis Technique ◽  
Research Population ◽  
Corporate Risk

This study aims to determine the effect of the board structure on business risk management. One indicator that can show the implementation of risk management is risk disclosure by the company. This study uses a quantitative approach with the research population being companies in Indonesia and Singapore included in the ASEAN Stars 2015 – 2018. Furthermore, this study uses a regression analysis technique to examine the effect of the board structure on corporate risk management. The results of this study indicate that although the structure of the board of companies included in ASEAN STARS in Indonesia and Singapore has differences, the results of the analysis of the two are not much different. This study shows that an independent board of commissioners and the frequency of meetings have a significant effect on the company's risk management. Otherwise, the composition of the female board of commissioners is proven not to affect the risk management. Overall, the results also show an increase in corporate governance activities and an increase in risk management activities. The results of this study can be used as input for potential investors to evaluate quantitative information, and other qualitative information such as the role of the board of commissioners and risk disclosure can be useful in decision making.

scholarly journals Editorial: Corporate governance through a prism of multi-disciplinary research

2020 ◽  
Vol 17 (2) ◽  
pp. 4-6
Author(s):  
Cesario Mateus ◽  
Irina B. Mateus
Keyword(s):  
Corporate Governance ◽  
Performance Management ◽  
Audit Quality ◽  
Academic Research ◽  
Audit Fees ◽  
Point Of View ◽  
Cultural Dimensions ◽  
Risk Disclosure ◽  
And Performance ◽  
Cross Cultural Management

This volume of the journal “Corporate Ownership and Control” is focused on corporate governance, corporate social responsibility, earnings and performance management, ownership concentration, institutional ownership, audit fees, audit quality and independence, cross-cultural management and cultural dimensions, financial instruments risk disclosure, equity incentives, firm performance, shareholder composition and monitoring effects, etc. The topics addressed in this issue highlight the continuing need for knowledge present in academic and non-academic research. The papers published in this issue offer an additional point of view with regard to the most important corporate governance issues.

scholarly journals Chilled to the Pill: The Japanese Judiciary’s Cool Reception of the Poison Pill and Potential Repercussions

2006 ◽  
Vol 67 (4) ◽  
Author(s):  
Douglas G. Gruener
Keyword(s):  
Corporate Governance ◽  
Mergers And Acquisitions ◽  
Corporate Strategy ◽  
Shareholder Activism ◽  
Business Environment ◽  
Share Ownership ◽  
The Past ◽  
Poison Pill ◽  
Lost Decade ◽  
Major Factors

While the 1990s is frequently referred to as Japan’s “lost decade” because of the nation’s economic underperformance and weak structures for corporate governance, the past few years have shown a business environment that is in the midst of significant transition. Most importantly, Japan is experiencing a boom in mergers and acquisitions (M&A), with the first half of 2005 alone accounting for an aggregate value of $108.9 billion in Japanese M&A transactions (greater than the $108.5 billion of deal value accumulated in all of 2004). Among the major factors contributing to this trend are the improved cash positions of many companies, a record level of foreign share ownership that has helped strengthen shareholder activism, and, perhaps most significantly, the gradual unwinding of stable cross-shareholding relationships that were previously a staple of Japanese corporate strategy and stability.

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