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 Pengaruh Ukuran Perusahaan, Konsentrasi Kepemilikan, Reputasi Auditor dan Risk Management Committee terhadap Pengungkapan Enterprise Risk Management

2020 ◽  
Vol 5 (1) ◽  
pp. 01
Author(s):  
Desak Nyoman Wiona Budi Fayola ◽  
Annisa Nurbaiti
Keyword(s):  
Risk Management ◽  
Firm Size ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Total Sample ◽  
Enterprise Risk Management ◽  
Ownership Concentration ◽  
Management Committee ◽  
Enterprise Risk ◽  
Risk Management Committee

This study aims to examine the effect of firm size, ownership concentration, auditor’s reputation and risk management committee on the disclosure of enterprise risk management in banking companies listed on the Indonesia Stock Exchange (IDX) for the 2015-2018. The sample selection technique used is puposive sampling and acquired 41 banking companies in the 2015-2018 so that the total sample used in this study are 164 samples. The data analysis method used is multiple linear regression analysis using Eviews version 10. The results found that simultaneous firm size, ownership concentration, auditor’s reputation, and risk management committee influence the disclosure of enterprise risk management. Based on partial testing, firm size has a positive effect and ownership concentration negatively influences the disclosure of enterprise risk management. 

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 Anteseden dari Pengungkapan Enterprise Risk Management pada Perusahaan yang Terdaftar di Indeks LQ45

2020 ◽  
Vol 5 (1) ◽  
pp. 90
Author(s):  
Keny Prasetyo Rini ◽  
Tuti Zakiyah
Keyword(s):  
Risk Management ◽  
Regression Analysis ◽  
Firm Size ◽  
Enterprise Risk Management ◽  
Management Committee ◽  
Positive Effects ◽  
Enterprise Risk ◽  
Reputation Risk ◽  
Risk Management Committee ◽  
Auditor Reputation

The purpose of this research is to determine te influences of independent commissioners, auditor reputation, risk management committee, leverage and firm size on enterprise risk management disclosure in index LQ45 companies listed in the 2016-2018. The samplimg method in this research is purposive sampling with 81 companies as population and 27 companies as samples. The ERM practice is measured based on ERM index, which considers the eight dimension of ERM by COSO framework. The results of simultaneous regression analysis show that the variables of independent commissioner, auditor reoutation, risk manegement committee, leverage and firm size have positif effects on the enterprise risk management disclosure. Partial testing shows that variabel of independent commissioner, risk management commite and firm size does not effect enterprise risk management disclosure. Auditor reputation and risk management committee have positive effects on enterprise risk management.

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 Effect of Risk Management Committee on Monitoring Mechanisms

2017 ◽  
Vol 1 (2) ◽  
pp. 38-49
Author(s):  
Rachael Oluyemisi Arowolo ◽  
Ayoib Che Ahmad ◽  
Oluwatoyin Muse Johnson Popoola
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Boards Of Directors ◽  
Agency Problems ◽  
Sub Saharan Africa ◽  
Monitoring And Control ◽  
African Countries ◽  
Management Committee ◽  
The Relationship ◽  
Risk Management Committee

Corruption has become an identification label for many African countries of which Nigeria is one of the top listed countries. Monitoring mechanisms (MM) is therefore at the forefront of issues being considered by governments, company boards of directors, regulators, and management to ensure transparency, accountability, and protection of the shareholders' interests. Risk management is connected with components of internal control (risks assessment, monitoring, and control activities) which is a vital instrument to mitigate agency problems emanating from corruption and moral hazards in companies. It is, therefore, essential to understand Risk Management Committee (RMC) as one of the organisational attributes that can affect MM. The relationship between RMC and MM has not been empirically tested, particularly in Sub-Saharan Africa. Therefore, this paper examines the relationship between RMC and monitoring mechanisms. It provides empirical supports that RMC associates with monitoring mechanisms to reduce agency problems, using the data (2010-2012) of Nigerian non-financial listed companies. The board of directors of Nigerian companies is encouraged by this research to explore the usefulness of RMC in monitoring the management and controlling shareholders to lessen agency problems and protect the interests of the minority shareholders.

scholarly journals Determinants of enterprise risk management disclosures: Evidence from insurance industry

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1331-1338 ◽  
Author(s):  
Dirvi Surya Abbas ◽  
Tubagus Ismail ◽  
Muhamad Taqi ◽  
Helmi Yazid
Keyword(s):  
Risk Management ◽  
Stock Exchange ◽  
Enterprise Risk Management ◽  
Ownership Concentration ◽  
Insurance Companies ◽  
Equation Modeling ◽  
Management Committee ◽  
Enterprise Risk ◽  
Business Size ◽  
Risk Management Committee

The aim of this study is to determine if there is a relationship between the number of commissioners on the committee, ownership concentration, the Risk Management Committee, business size, and leverage on enterprise risk management. Take, for example, insurance companies listed on the Indonesia Stock Exchange. Purposeful sampling was used in the sampling process. Supplementary data was obtained from the website of the Indonesia Stock Exchange. Panel data regression analysis was used as the research method. Although business size had an effect on enterprise risk management transparency, board size, stake concentration, the risk management committee, and leverage had little effect. By integrating the variables Board of Commissioners Size and Ownership Concentration, as well as employing dynamic equation modeling to examine the above relationships, which have been overlooked in previous analyses, and analyzing more recent evidence from a developed world perspective, this study contributes to the management accounting literature and organization theory. The findings would be useful to Indonesian practitioners, especially those in management positions in insurance companies and financial institutions.

scholarly journals The Effect of Public Ownership, Risk Management Committee, Bank Size, Leverage, and Board of Commissioners on Risk Management Disclosures (Empirical Study in Banking Sector Companies Listed on the Indonesia Stock Exchange for the Period 2011-2015)

2018 ◽  
Vol 8 (1) ◽  
pp. 12
Author(s):  
Nisa Nailur Rahma ◽  
Luciana Spica Almilia
Keyword(s):  
Risk Management ◽  
Banking Sector ◽  
Stock Exchange ◽  
Hypothesis Test ◽  
Secondary Data ◽  
Annual Reports ◽  
Public Ownership ◽  
Management Committee ◽  
Management Disclosures ◽  
Risk Management Committee

Every company is defi nitely at fi nancial risk or operational risk. In a uncertain econimic situation, risk management is one of the ways to reduce and deal with the possible risk faced by the company. This research aims to analyze the effect of public ownership, risk management committee, bank size, leverage and the board of commissioners on the disclosure of risk management. The population used in this study is secondary data derived from annual reports of conventional banking companies listed on the Indonesia Stock Exchange (IDX), period 2011-2015. A sample of 35 companies is obtained through purposive sampling method. The statistical method used is regression analysis. Hypothesis test is conducted by t test and F test. The results of this study show that (1) public ownership has no effect on risk management disclosure, (2) risk management committe has an effect on risk management discolsure, (3) bank size has no effect on risk management disclosure, (4) leverage has an effect disclosure risk management, (5) the board of commissioners has an effect on risk management disclosure.

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