Board attributes, ownership structure and risk management: A proposed model for insurance firms in Nigeria

As a response to the weaknesses in corporate governance and risk management created by the 2007/2008 financial crises, Enterprise Risk Management (ERM) becomes imperative, especially in the financial sector. Therefore, in understanding the board's responsibility in ensuring good governance through ERM implementation, two fundamental questions need to be answered; what determines the makeup of the board? And what determines boards' action? Consequently, this study proposed a conceptual framework for investigating the moderating role of ownership structure on the relationship between board attributes and risk management of insurance firms in Nigeria using the model approach. Hence, the control, resource acquisition, and service roles of the board as explained by agency, stewardship, and resource dependence theories explain this relationship. Board attributes are measured by board composition, board structure, board characteristics, and board process, ownership structure is measured by ownership concentration, board ownership, and foreign ownership, and ERM is measured using the disclosure index. Findings from the review of literature reveal that governance attributes in board attributes-risk management relationships have been measured on single or fragmented criteria, leading to contradictory or conflicting findings. Hence, the significance of the study lies in the conceptualization and choice of board attributes as explained by board roles and an integrative theoretical perspective to propose the choice of board attributes in the board attributes-risk management relationship and how ownership structure can influence the relationship, adding to the existing literature onboard attributes, ownership structure, and risk management.

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The Relationship between Ownership Structure and Risk Management: Evidence from Iran

International Journal of Academic Research in Business and Social Sciences ◽

10.6007/ijarbss/v4-i2/594 ◽

2014 ◽

Vol 4 (2) ◽

Author(s):

Sheyda Lotfi ◽

Dr. Ataollah Mohammadi

Keyword(s):

Risk Management ◽

Ownership Structure ◽

The Relationship

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PENGARUH DEWAN KOMISARIS, LEVERAGE, DAN STRUKTUR KEPEMILIKAN TERHADAP PENGUNGKAPAN ENTERPRISE RISK MANAGEMENT (ERM)

Equity ◽

10.34209/.v20i2.627 ◽

2019 ◽

Vol 20 (2) ◽

pp. 5

Author(s):

Jetmi Ade Cecasmi ◽

Samin Samin

Keyword(s):

Risk Management ◽

Ownership Structure ◽

Sampling Method ◽

Stock Exchange ◽

Sampling Technique ◽

Enterprise Risk Management ◽

Financial Report ◽

Purposive Sampling ◽

Analysis Technique ◽

Enterprise Risk

The purpose of this study was to examine the influence of Board of Commissioner, Leverage, and Ownership Structure on the Enterprise Risk Management disclosure of banking firm listed in Indonesian Stock Exchange for the period from 2013 to 2015. Sampling technique using purposive sampling (purposive sampling method). The sampel used in this study is a banking company that meets the criteriaas set out in this study to obtain 21 banking. The data obtained derived from the annualreport and financial report of the banks publishe. The analysis technique used in this research is multiple linear regression to test the classical assumption first. The result showed that the Board of Commissioner have a significant influence on the Enterprise Risk Management Disclosure. Leverageand Ownership Structure is not significantly effects on Enterprise Risk Management Disclosure.

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Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh

Summer - GATR Journal of Finance and Banking Review ◽

10.35609/jfbr.2020.5.2(3) ◽

2020 ◽

Vol 5 (2) ◽

pp. 58-69

Author(s):

Dewan Azmal Hossain

Keyword(s):

Earnings Management ◽

Empirical Evidence ◽

Ownership Structure ◽

Good Governance ◽

Foreign Ownership ◽

Jel Classification ◽

Financial Information ◽

Least Square ◽

The Relationship

Objective – This study aims to examine the relationship between ownership structure (determined by institutional and foreign ownership) and earnings management in the context of Bangladeshi Pharmaceuticals and Chemical firms. Methodology/Technique – Out of 32 listed firms, this study examined 29 firms from the pharmaceuticals and chemical industry of Bangladesh from 2014 to 2018. Three firms are omitted as they got listed in 2018 and 2019 respectively. This study uses discretionary working capital accrual to measure earnings management that is the dependent variable. Ordinary least square regression analysis is conducted to assess the result of this study. Institutional and foreign ownership are independent variables. ROA, size, cash flow from operation, and leverage are control variables. Findings – It is found that institutional ownership is negatively related to earnings management and foreign ownership is positively related to earnings management but none of them are statistically significant indicating institutional and foreign ownership do not help in resolving or reducing the earnings management problems in the context of Bangladeshi pharmaceuticals and chemical firms. Novelty – Previous studies in Bangladesh deal only with the techniques of earnings management. To my knowledge, it is the first study that tries to assess the relationship of ownership structure defined by institutional and foreign shareholdings with earnings management in the context of Bangladeshi pharmaceuticals and chemical firms. These two ownership patterns are selected because they are supposed to increase the quality of financial information and also because in Bangladesh state and general shareholders are too dispersed to monitor the governance issues. The practical implications of this study is that investors should not consider institutional and foreign ownership percentage as a determining factor of good governance when considering investment decisions rather should look for other firm-specific factors as institutional and foreign shareholders are found to be inactive in increasing the quality of financial information in the context of Bangladesh. Policymakers should identify why institutional and foreign shareholders are not active and should revise the governance mechanisms accordingly. Type of Paper: Empirical Keywords: Ownership structure; Institutional Shareholdings; Foreign Shareholdings; Earnings Management; Bangladesh. Reference to this paper should be made as follows: Hossain, D.A. 2020. Ownership Structure and earnings management: Empirical evidence from listed pharmaceuticals and chemical firms of Bangladesh, J. Fin. Bank. Review, 5 (2): 58 – 69 https://doi.org/10.35609/jfbr.2020.5.2(3) JEL Classification: G40; G41; G49.

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Examining the Relationship Between Enterprise Risk Management and Firm Performance in Malaysia

International Journal of Financial Research ◽

10.5430/ijfr.v10n3p239 ◽

2019 ◽

Vol 10 (3) ◽

pp. 239

Author(s):

Mazurina Mohd Ali ◽

Nur Shazwani Ab Hamid ◽

Erlane K Ghani

Keyword(s):

Risk Management ◽

Firm Performance ◽

Enterprise Risk Management ◽

Audit Firm ◽

Listed Firms ◽

Significant Coefficient ◽

Enterprise Risk ◽

Before And After ◽

The Mean ◽

The Relationship

This study aims to examine the relationship between enterprise risk management (ERM) implementation and firm performance in Malaysia. Using the sample from 2010 to 2016, this study examines the relationship between ERM and firm performance among Malaysian top 100 public listed firms registered on the Index FTSE Bursa Malaysia 100 (FBM100) KLSE. This study also provides comparisons before and after the introduction of Bursa Malaysia Guidelines 2013. This study shows a positive and significant coefficient between profitability and firm performance towards ERM implementation. However, this study shows insignificant relationship between firm size, financial leverage and audit firm with firm performance. This study also shows that there is an increase in the mean score and standard deviation of these variables after the implementation of Bursa Malaysia Guideline 2013. The findings in this study provides an understanding to the Malaysian public listed firms on the importance of ERM and subsequently, maximise the benefits of ERM especially after the introduction of Bursa Malaysia Guidelines 2013 for the benefits of their stakeholders and regulatory improvement in future.

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The Mediating Effect of Top Management Support on the Relationship between Organizational Culture and Enterprise Risk Management Effectiveness among Malaysian Public Listed Companies: A Conceptual Framework

10.7176/rjfa/10-2-11 ◽

2019 ◽

Keyword(s):

Risk Management ◽

Organizational Culture ◽

Conceptual Framework ◽

Enterprise Risk Management ◽

Mediating Effect ◽

Management Support ◽

Management Effectiveness ◽

Top Management Support ◽

Enterprise Risk ◽

The Relationship

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Investigation of the Pillars of Sustainability Risk Management as an Extension of Enterprise Risk Management on Palestinian Insurance Firms’ Profitability

Sustainability ◽

10.3390/su12114709 ◽

2020 ◽

Vol 12 (11) ◽

pp. 4709

Author(s):

Rami Shaheen ◽

Mehmet Ağa ◽

Husam Rjoub ◽

Ahmad Abualrub

Keyword(s):

Risk Management ◽

Method Of Moments ◽

Generalized Method Of Moments ◽

Political Stability ◽

Enterprise Risk Management ◽

Reverse Causality ◽

Comprehensive Understanding ◽

Management Efficiency ◽

Enterprise Risk ◽

Insurance Firms

This research paper examined the simultaneous relationship between sustainability risk management (SRM) as an extension of Enterprise Risk Management (ERM) and Palestinian insurance firms’ profitability, for the period spanning 2007Q1 to 2018Q4, by applying the panel dynamic (Generalized Method of Moments) GMM model. The literature was expanded by providing a comprehensive understanding of determining the pillars of ERM with the use of the factor analysis principle component method. The findings revealed that the firm’s profitability positively corresponded to ERM1 implementation, which represents “management efficiency”. In contrast, it shows negative correspondence to ERM2 implementation, which represents “control and ownership”. Furthermore, there were slightly negative signs from managing the use of leverage and they were conservative in terms of loss reserves. The challenges of firms’ profitability have negatively corresponded to emerging sustainability risks, such as political stability, that cause premiums written to show weak signs of excessive choice of risk or prices that are not met carefully. Interestingly, there is a positive relationship in the interaction between ERM2 implementation during the crisis period on insurance firms’ profitability. There is a robust causal relationship from ERM to the profitability (either positive or negative). The reverse causality is also significant but to a lesser extent. Thus, the study recommends alignment more coherent with the implication of ERM as holistic risk according to the market characteristic towards the environmental perils leads to sustainable development and its segments to maintain the longer term of survival in the firms’ performance.

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