Distress Analysis and Risk Score of Hotels

2020 ◽  
Vol 9 (3) ◽  
pp. 1-14
Author(s):  
Vilas G. Waikar ◽  
Sigfred Fernandes
Keyword(s):  
Risk Management ◽  
Risk Score ◽  
Management Practices ◽  
Annual Reports ◽  
Risk Scores ◽  
Z Score ◽  
Risk Disclosure ◽  
High Volatility ◽  
Z Scores ◽  
Risk Disclosures

This article is first study of a service firm's risk/risk management score and Zeta function, particularly . analysis how risk disclosure and financial performance varies longitudinally. Using mix methodology, research uses Z score-discriminant function Z_I= ∑_(i=1)^n〖β_i X_i 〗 Z, X -specific to hotel industry and the risk scores, extracted from analysis of formal disclosures from annual reports . This article identifies that risk and risk management practices differ across hotel formats. The analysis of Z scores and risk disclosures reveals the association between these variables. The international hotels in comparison to national and local hotels are more distressed and hence have high risk scores confirming awareness of strength of this relation. Local standalone hotels are exhibiting high volatility and exhibit low risk score. This unique relationship between z score and risk disclosures will prove to have sustained relevance to risk academicians and practitioners.

scholarly journals Key Mechanisms of Risk Management in South Africa’s National Government Departments: The Public Sector Risk Management Framework and the King III Benchmark

2016 ◽  
Vol 14 (2-3) ◽  
Author(s):  
Tankiso Moloi
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Data Extraction ◽  
Risk Process ◽  
National Government ◽  
Annual Reports ◽  
Risk Governance ◽  
Risk Disclosure ◽  
Poor Risk ◽  
Management Disclosures

Government provides essential services to the population and therefore, uncertainties that could hinder government’s objectives should be identified, mitigated/controlled and monitored. Using the content analysis for data extraction in the annual reports of national government departments (NGDs), this paper explored risk management practices in South Africa’s public service, with national government departments as a case in point. The findings are that in general, there are poor risk management practices in the NGDs as the majority of the observed categories were not disclosed in the NGDs annual reports.Since risk deals with the uncertainties on the objectives, it is concerning that NGDs have poor risk management practices, particularly because they are enablers (implementers) of government overarching strategy. As enablers of government strategy, it is recommended that NGDs view risk management as a process that enables them to identify threats which could hinder the attainment of their objectives, whilst also leveraging opportunities that may arise. It is further recommended that the risk process is viewed as a scenario or option analysis exercise that allows NGDs to properly plan, understand the intended outcomes and prepare responses to deal with any uncertainties. A summarised and harmonized risk governance requirement used for the purpose of exploring risk management disclosures has been suggested by this study and it could be used as a reference point of risk disclosure improvement by NGDs.

scholarly journals Governance of risks in South Africa’s public higher education institutions (HEIs)

2016 ◽  
Vol 13 (2) ◽  
pp. 226-234 ◽  
Author(s):  
Tankiso Moloi
Keyword(s):  
Higher Education ◽  
South Africa ◽  
Risk Management ◽  
Management Practices ◽  
Higher Education Institutions ◽  
Relevant Literature ◽  
Strategic Decision ◽  
Annual Reports ◽  
Risk Governance ◽  
Risk Disclosure

The author examines the manner in which risk is governed within higher education institutions (HEIs) in South Africa by formulating risk governance statements based on the requirements of the King III Report on Corporate Governance and other relevant literature. The formulated risk governance statements are used to develop the risk disclosure measurement index. Disclosure measurement method is accepted as a flexible method to use when extracting the pre-determined information in the annual reports. The developed risk disclosure index is used to extract the information from South Africa’s higher education institutions’ annual reports. The information disclosed in these annual reports is deemed a proxy of risk management practices within the higher education institution concerned. The results obtained indicate that South Africa’s higher education institutions have not embraced risk management as a key process in their activities. This is apparent in the assessed annual reports as compliance with the pre-determined set of statements was around 50%. For those that have not demonstrated these practices, it is stated that the concern is around the manner in which their highest decision makers make decisions, as it appears that risks may not necessarily be taken into account. As higher education institutions in South Africa continues to face challenges and they would possible be revising their strategies to take into account the recent events, every strategic decision being undertaken should be accompanied by a proper risk assessment to identify potential pitfalls (threats) and/or take advantage to achieve results promptly (opportunities)

scholarly journals Risk Management Practices by South African Universities: An Annual Report Disclosure Analysis

2021 ◽  
Vol 14 (5) ◽  
pp. 195
Author(s):  
Inga Sityata ◽  
Lise Botha ◽  
Job Dubihlela
Keyword(s):  
Risk Management ◽  
South African ◽  
Management Practices ◽  
Qualitative Content Analysis ◽  
Annual Reports ◽  
Risk Governance ◽  
Exploratory Research ◽  
Risk Disclosure ◽  
South African Universities ◽  
The Impact

This paper assesses risk management practices at South African universities by analyzing the extent of risk management disclosure recommended by King IV and the level of risk governance maturity. This study was motivated by #Feesmustfall disruptions, which pointed to the lack of effective risk management, preparedness for volatility and increased scrutiny by stakeholders. A qualitative content analysis using a risk disclosure checklist was conducted on 18 annual reports and analyzed using an exploratory research design. The results revealed that over 80% of the sampled South African universities have disclosed most of their risk management practices, showing an improved disclosure due to King IV’s “apply and explain” philosophy as introduced in 2016. However, there were areas of improvement identified, such as: defining and approval of risk appetites and tolerance; development and implementation of business continuity plans; confirming the unpreparedness for volatility; annual revision of policies; and integration of risk management into the culture and daily activities of the university. This paper builds upon previous studies that highlighted a lack of detailed disclosures in South African organizations’ annual reports. This study also provides interesting insights into the impact of social events on organizational practices and supports the notion that legislative accounting practices should echo stakeholders and societal expectations.

scholarly journals Corporate risk disclosures: Influence of institutional shareholders and audit committee

2013 ◽  
Vol 10 (4) ◽  
pp. 341-354 ◽  
Author(s):  
Xuan Zhang ◽  
Dennis Taylor ◽  
Wen Qu ◽  
Judith Oliver
Keyword(s):  
Audit Committee ◽  
Audit Committees ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Proprietary Information ◽  
High Resource ◽  
Institutional Shareholders ◽  
Risk Disclosures ◽  
Corporate Risk ◽  
Made In

This study investigates the association between corporate risk disclosures and institutional shareholders and audit committees. Using a sample of 66 Australian listed companies, risk disclosures made in 2009 annual reports are analysed. Findings reveal that there is no significant relationship between dedicated-type institutional block shareholders and risk disclosure, which it is argued is consistent with a proprietary information perspective. A positive relationship however is found between transient-type institutional block shareholders and risk disclosures. This result is consistent with a principal that wields limited monitoring resources while achieving high resource dependency over management. Significant positive relationships are found between audit committee independence and risk disclosures.

scholarly journals Corporate Governance and Risk Disclosures: A Comparative Analysis Between Bangladeshi and Malaysian Islamic Banks

2019 ◽  
Vol 10 (5) ◽  
pp. 110
Author(s):  
Mohammad Rokibul Kabir ◽  
Farid A. Sobhani ◽  
Normah Omar ◽  
Norazida Mohamad
Keyword(s):  
Corporate Governance ◽  
Profit Sharing ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Risk Disclosure ◽  
Corporate Governance Mechanisms ◽  
Analysis Technique ◽  
Risk Disclosures

Corporate governance provides a fundamental framework to oversee corporate conduct and ensures transparency of institutions like banks. In case of Islamic banks, it adds additional importance as the profit sharing (with the depositors) system enhances the chance of agency problem for such institutions. Again, risks are inherent in institutions like Islamic banks, which necessitate the investors to get proper information about the risk encountered by the banks in which they invest. Thus, corporate governance and risk disclosures bear utmost importance. Since Malaysian banking industry has already experienced a favorable growth of Islamic banking and Bangladesh is observing a rapid growth of popularity of Islamic banking, a comparative study has been undertaken between Malaysian and Bangladeshi Islamic banks regarding corporate governance and risk disclosures in annual reports. Content analysis technique has been applied to facilitate the comparison. Both quantity and quality of risk reporting of the sample companies have been evaluated. A corporate governance disclosure index has been developed by following the guidelines provided by Bangladesh Security and Exchange Commission (BSEC) and the principles laid down in the ‘Guidelines on Corporate Governance for Licensed Islamic Banks in Malaysia’ to explore and compare the degree of good corporate governance and relevant disclosures in the annual reports. It is hypothesized that corporate governance and risk disclosure will vary between Malaysian and Bangladeshi Islamic Banks. It is also argued that the corporate risk disclosures will be positively associated with the quality of the firm’s corporate governance mechanisms. Results are generally supportive of hypotheses. At the end, implications for theory and practices are discussed in the study.

scholarly journals Firm Characteristics And Enterprise Risk Management Disclosures: Evidence From State-Owned Enterprise In Indonesia

2021 ◽  
Vol 9 (8) ◽  
pp. 136-144
Author(s):  
Hudi Kurniawanto
Keyword(s):  
Risk Management ◽  
Regression Analysis ◽  
Stock Exchange ◽  
Total Sample ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Firm Characteristics ◽  
Risk Disclosure ◽  
Enterprise Risk ◽  
Management Disclosures

The purpose of this study is to examine the effect of firm characteristics on enterprise risk management disclosure. The object of research is State-Owned Enterprises listed on the Indonesia Stock Exchange in 2019-2020, a total sample of 40 annual reports using purposive sampling and multiple regression analysis. The results of this study prove that firm size and leverage do not affect enterprise risk management disclosure, while profitability affects enterprise risk management disclosure. The greater the profitability generated by the company, the wider the risk disclosure will be made to show stakeholders that State-Owned Enterprises in Indonesia can use capital efficiently.

Investigation of risk management and risk disclosure practices of Italian listed local utilities

2013 ◽  
pp. 121-167 ◽  
Author(s):  
Selena Aureli ◽  
Federica Salvatori
Keyword(s):  
Risk Management ◽  
Qualitative Methodology ◽  
Management Practices ◽  
Service Providers ◽  
Document Analysis ◽  
Risk Exposure ◽  
Risk Disclosure ◽  
Utility Companies ◽  
Utility Services

Local utility services deeply affect the overall quality of life of a country's population. For this reason service providers should pay strong attention to risk management practices, but also to the external communication of both the risk exposure and the risk responses. Following a qualitative methodology, this paper aims at exploring the risk management and risk disclosure practices of five Italian listed local utility companies combining two research methods: questionnaire and document analysis. Results show that these Italian listed local utilities are characterized by different maturity levels of risk management practices, which are not extensively disclosed in public reports and documents. Interestingly, the link between the level of disclosure and maturity of risk management practices is confirmed just for those companies that seem to be the most mature in terms of risk management.

scholarly journals Risk Disclosure and Performance of Malaysian Construction Public Listed Companies

2019 ◽  
Vol 266 ◽  
pp. 03012
Author(s):  
Wong Ching Ching ◽  
Ali M. Alashwal ◽  
Faizul Azli Mohd Rahim
Keyword(s):  
Risk Management ◽  
Internal Control ◽  
Listed Companies ◽  
Regulatory Compliance ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Corporate Code ◽  
Management Framework ◽  
Risk Management Framework ◽  
Increased Risk

Due to regulatory reforms, corporate governance has evolved with Enterprise Risk Management become prominence since the 1990s. In Malaysia, Statement of Risk Management and Internal Control with Malaysian Corporate Code of Governance are regulatory compliance on risk management for the Public Listed Companies. Companies are required to make risk disclosures in their annual report based on Risk Management Framework, which indirectly provided insights for shareholders and investors to assess the company’s performance. This study aims to determine the extent of risk implementation based on Risk Management Framework and the effect on construction Public Listed Companies performance. The sample of this study consists of 227 construction Public Listed Companies in Malaysia Bourse from 2011, 2014, 2015, 2016 and 2017. Content analysis is conducted on the company’s annual reports for the five years based on Risk Management Framework components and financial ratios. The study revealed the presence of both guidelines had increased risk disclosure among construction Public Listed Companies but there was no significant improvement in their financial performance.

Does IPO prospectus in Malaysia disclose relevant risk?

2019 ◽  
Vol 11 (4) ◽  
pp. 301-323
Author(s):  
Sin Huei Ng ◽  
Chen Suen Lee
Keyword(s):  
Risk Factor ◽  
Initial Public Offering ◽  
Stock Prices ◽  
Relevant Information ◽  
Annual Reports ◽  
Risk Disclosure ◽  
Content Type ◽  
Public Offering ◽  
The Right ◽  
Risk Disclosures

Purpose The study intends to shed lights on whether the risk factors disclosed in the initial public offering (IPO) prospectus in Malaysia are able to reflect the actual risks of stocks once they are traded on the exchange. In other words, the purpose of this paper is to explore whether prospective investors will be able to benefit, in terms of the more accurate risk information, from the risk disclosures in the IPO-prospectus. Design/methodology/approach Using data obtained from 118 IPO prospectuses of Malaysian companies that issued shares on Bursa Malaysia in the period from 2009 to 2016, the authors investigated whether the “risk factor” section in the IPO prospectuses provides sufficient risk-relevant information to investors. To determine whether companies disclose risk-relevant information, a detailed content analysis of the risk sections was carried out to obtain an aggregate measure of risk disclosure. Findings The findings revealed that the aggregate measures of risk extracted from these texts did not successfully predict the following outcomes: the volatility of companies’ future stock prices, the sensitivity of future stock prices to market-wide fluctuations and the severe declines in future stock prices. Practical implications As indicated by the findings, the authors, therefore, deduce that the IPO prospectuses of Malaysian companies do not provide sufficient risk-relevant information in the risk factor section. The findings imply that overall the management of Malaysian companies would neither be able nor willing to disclose the right and relevant information to the public via IPO prospectus. Originality/value Many corporate risk disclosure studies focus primarily on the disclosures of annual reports of companies. The study intends to fill the gap by focusing on the risk disclosure in the IPO-prospectus. Risk disclosures in IPO-prospectus are farmore extensive than annual reports and, therefore, provide a richness of information that will not be available in the annual reports.

scholarly journals The effect of the financial crisis on risk disclosures: a comparative study of U.S. and Canadian corporations

2014 ◽  
Vol 11 (3) ◽  
pp. 447-458 ◽  
Author(s):  
Michael Maingot ◽  
Tony Quon ◽  
Daniel Zéghal
Keyword(s):  
Risk Management ◽  
Content Analysis ◽  
Financial Crisis ◽  
Enterprise Risk Management ◽  
Annual Reports ◽  
Energy Materials ◽  
2008 Financial Crisis ◽  
Enterprise Risk ◽  
The 2008 Financial Crisis ◽  
Risk Disclosures

The effect of the financial crisis on enterprise risk management (ERM) disclosures was examined through a content analysis of the 2007 and 2008 annual reports of S&P 500 and S&P- TSX Composite companies in the energy, materials, industrials, and consumer discretionary sectors. Fourteen types of risk were tracked and categorized. The total number of risk disclosures by S&P 500 companies hardly increased at all from 2007 to 2008, while the total number of risk disclosures by TSX companies increased slightly. Overall, the 2008 financial crisis has not had a major impact, if any, on risk disclosures by major non-financial U.S. and Canadian corporations

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