scholarly journals Corporate Governance, Risk Management and Ethical Investment: Evidence From Banking Industries

2019 ◽  
Vol 10 (5) ◽  
pp. 126
Author(s):  
Amzad Hossain ◽  
Farid A. Sobhani ◽  
Normah Omar ◽  
Norazida Mohamad ◽  
Jamaliah Said
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Management Practices ◽  
Banking Sector ◽  
Internal Audit ◽  
Ethical Investment ◽  
Responsible Investment ◽  
Good Corporate Governance ◽  
Governance Risk

Considering the importance of good corporate governance in the banking industry, the study has been designed to investigate the managerial perceptions on interrelationship among good corporate governance, risk management, and ethical investment of the commercial banks of Bangladesh. Bangladesh has been selected as a field of study for three reasons. Firstly, banking is the leading sector in Bangladesh. Secondly, banking sector has been highly criticized in the recent times due to Bangladesh Bank scandal. Thirdly, banking is gradually being challenging services in Bangladesh. As a financial intermediary, bank has to ensure good corporate governance for smooth operations and reducing agency problem. As a trustee, bank deals with the money of others through various schemes of investment. Ethical investment known as social responsible investment is an indicator of good corporate governance. A structured questionnaire has been used to gather perceptions of managers of the sample banks. The results suggest that the most important factors for effective CG were the board of directors, auditors and managers of the various departments. The study also finds that risk taking behavior of the bank is influenced by the direction of board of directors. In this study corporate governance variables have been categorized with some sub-indices. Board’s structure with independent directors and well communication with supervisors ensure the efficient risk management practices in the banks where internal audit system and transparent disclosures of the board ensure the ethical investment practices.

Corporate Governance and Risk Management on Listed Banks, The Tanzania Perspective

2021 ◽  
Vol 8 (1) ◽  
pp. 27
Author(s):  
Erick Lusekelo Mwambuli ◽  
Avitus Mwebembezi Dominick
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Approach ◽  
Financial Risks ◽  
The Board Of Directors

The study was to assess on corporate governance and risk management in Tanzania. The study was guided by three objectives which were to assess if transparency, disclosure and audit have significant effect on risk management of the firm, to assess if the board of directors have significant effect on risk management of the firm and evaluate if the ownership structure have significant effect on risk management of the firm. Furthermore, we assess how corporate governance and particularly board of directors, ownership structure, transparency disclosure and audit can affect risk management practices in the context of Dar es Salaam stock exchange listed banks. By the use of a content in analysis approach, the level of exposing the risks in terms of likelihood, consequences of such risk and the strategies used for managing that risk were identified for each kind of risk by using attributes. The results show that corporate governance is related to board of directors, ownership structure, transparency, disclosure and audit play a positive significant and crucial role in establishing an integrative risk management approach. The results from data collected demonstrate that corporate governance has positive significant effect in determining the the good quality of risk management through the level of risk-taking in decisions, especially in terms of financial risks management.

scholarly journals The Role of Internal Audit in Risk Management from the Perspective of Risk Managers in the Banking Sector

2021 ◽  
Vol 15 (2) ◽  
pp. 114-129
Author(s):  
Oday Tamimi
Keyword(s):  
Risk Management ◽  
Management Practices ◽  
Banking Sector ◽  
Internal Audit ◽  
Target Population ◽  
Internal Auditing ◽  
The Board Of Directors ◽  
Risk Managers ◽  
Main Factor

The present paper aims to identify the role of internal audit function in risk management from the perspective of risk managers in banks operating in Palestine, with a review of the concept, importance, objectives, and principles of internal audit and its role in risk management for banks. The target population is the risk managers in the banks operating in Palestine. The major findings in the presented paper. First, the main factor in risk management is the risk manager's efficiency, and the internal auditing focuses on evaluating the risk management department and ensuring the efficiency of risk management practices in dealing with these risks. Second, the internal audit departments in the banks operating in Palestine participate in providing advice, suggestions and recommendations for the risk management department. Based on the results, the board of directors and senior management in these banks should continue to pay attention to the risk management department, and the need for coordination between these departments to achieve the best results at the banking and economic levels.

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP KINERJA KEUANGAN PERUSAHAAN PERBANKAN YANG TERDAFTAR DI BEI TAHUN 2014-2018

2021 ◽  
Vol 10 (3) ◽  
pp. 290
Author(s):  
Della Ayu Rizki ◽  
Eni Wuryani
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Banking Sector ◽  
Audit Quality ◽  
Institutional Ownership ◽  
External Audit ◽  
Good Corporate Governance ◽  
The Board Of Directors

The purpose of this study was to determine the effect of implementing good corporate governance on financial performance in banking companies. Proxies for good corporate governance are the board of directors, the independent board of commissioners, the audit committee, external audit quality, and institutional ownership. Measurement of banking financial performance uses Return on Assets (ROA). The sample used is 26 samples of banking sector companies listed on the IDX during 2014-2018. The analysis technique uses multiple regression analysis. The results showed that the board of directors and institutional ownership have an influence on financial performance, while the independent board of commissioners, audit committee, and external audit quality have no influence on financial performance. Keywords: Good Corporate Governance;Financial Performance;Banking Sector.

scholarly journals Internal auditor’s contribution to good corporate governance: An empirical analysis for the one-tier governance system with a focus on the relationship between internal audit function and audit committee

2015 ◽  
Vol 13 (1) ◽  
pp. 141-151 ◽  
Author(s):  
Marc Eulerich ◽  
Patrick Velte ◽  
Jochen Theis
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Control Function ◽  
Central Element ◽  
Internal Audit ◽  
Governance Structure ◽  
Governance System ◽  
Good Corporate Governance

The effectiveness and efficiency of the corporate governance structure depends on different governance bodies within the organization. As crucial parts of good corporate governance they provide constituting, monitoring and controlling tasks concerning the risk management and internal control system. These corporate governance mechanisms include the internal control function (IAF) and the audit committee (AC). Based on a dataset of 550 responses from U.S. internal auditors, our study explores empirically the IAF’s contribution to good corporate governance. Our results suggest that the IAF constitutes a central element of the governance structure. Furthermore, an intensive interaction between the IAF and the AC is positively linked with the efficiency and effectiveness of the governance processes, internal controls and risk management.

scholarly journals Analisis Manajemen Risiko Pada Perusahaan Perbankan Yang Go Public

2018 ◽  
Vol 10 (2) ◽  
pp. 161-174
Author(s):  
Deograsias Yoseph Y.F.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Banking Sector ◽  
Banking Industry ◽  
Good Corporate Governance ◽  
Risk Management System ◽  
Integrated Risk ◽  
Governance Practices ◽  
External Conditions ◽  
Integrated Risk Management

The expanding banking growth is followed by the increasing number of risks that must be faced by banks. Along with the external conditions of the banking sector which  were  increasingly  troubled  by  the  threatening  risks,  Bank  Indonesia required each bank to have an integrated risk management system. To minimize this risk, Basel II is applied to improve the standards for banks that go public in order to manage risk management properly.  As a financial intermediary, the implementation of risk management is very important for banks to reduce losses. Maximum risk management for banks can ensure banks will survive destruction if a  bad  situation  occurs.  With  the  increasingly  complex  risks  in  the  banking industry, Good Corporate Governance practices are needed. These efforts are carried out to avoid a banking crisis in the future.

scholarly journals Does Corporate Governance and other Factors Influence Earnings Management? A Study on Indonesia’s Banking Sector

2022 ◽  
Vol 10 (1) ◽  
pp. 11-26
Author(s):  
Sigit Handoyo ◽  
Inneke Tri Tri Kusumaningrum
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Banking Sector ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Research Data ◽  
Financial Data ◽  
Good Corporate Governance ◽  
Conventional Banks

The issue of misreporting financial data and earnings management has become more prominent in recent years. Several studies have been conducted determining the influences of the mechanisms of corporate governance and earnings management in various countries. In this study, it was proven that the existence of a good corporate governance (GCG) mechanism did not suppress earnings management practices in the banking sector industry in Indonesia. However, another factor, dividend policy, can prove effective in suppressing earnings management. The measurement of earnings management in this study was carried out using the Modified Jones model with a population of 43 conventional banks from which research data were taken using a purposive sampling technique sourced from the Indonesia Stock Exchange (IDX). The analysis was carried out using multiple linear regression. The implication of this research is that the implementation of good corporate governance by an entity must be considered given that earnings management practices in Indonesia are still relatively high.

scholarly journals Analisis Manajemen Risiko Pada Perusahaan Perbankan Yang Go Public

2019 ◽  
Vol 10 (2) ◽  
pp. 161-174
Author(s):  
Deograsias Yoseph Y. F.
Keyword(s):  
Risk Management ◽  
Corporate Governance ◽  
Banking Sector ◽  
Banking Industry ◽  
Good Corporate Governance ◽  
Risk Management System ◽  
Integrated Risk ◽  
Governance Practices ◽  
External Conditions ◽  
Integrated Risk Management

The expanding banking growth is followed by the increasing number of risks that must be faced by banks. Along with the external conditions of the banking sector which  were  increasingly  troubled  by  the  threatening  risks,  Bank  Indonesia required each bank to have an integrated risk management system. To minimize this risk, Basel II is applied to improve the standards for banks that go public in order to manage risk management properly.  As a financial intermediary, the implementation of risk management is very important for banks to reduce losses. Maximum risk management for banks can ensure banks will survive destruction if a  bad  situation  occurs.  With  the  increasingly  complex  risks  in  the  banking industry, Good Corporate Governance practices are needed. These efforts are carried out to avoid a banking crisis in the future.

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