Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM, Bangi, Selangor, MALAYSIA.
Faculty of Economics and Management
Universiti Kebangsaan Malaysia
43600 UKM, Bangi, Selangor, MALAYSIA.
Abstract
The purpose of this study is to examine the comparative moderating effects of two separate risk governance mechanisms on the relationship between voluntary risk management disclosure (VRMD) and firm performance (FP). This study utilizes content analysis method to collect VRMD data, while FP is measured based on investors’ perspective, represented by Tobin’s Q. Multivariate statistical tests show that the existence of Risk Management Committee (RMC) augmented the association between VRMD and FP. However, the appointment of audit committee (AC) and the quality of AC which are represented by size, independence, education and number of AC meetings, do not have any moderating effect on the relationship between VRMD and FP. The findings suggest that risk governance mechanisms do matter to investors in evaluating risk management information. The findings also provide empirical evidence that should be of interest to the management of company and regulatory bodies in terms of deciding upon whether or not to establish RMC as a separate committee from AC.
Keywords
Citation
@article{abdullah2017comporative,
title={The Comparative Moderating Effect of Risk Management Committee and Audit Committee on the Association Between Voluntary Risk Management Disclosure and Firm Performance},
author={Abdullah, Maizatulakma and Abdul Shukor, Zaleha},
journal={Jurnal Pengurusan},
number={},
pages={159—172},
doi={https://doi.org/10.17576/pengurusan-2018-51-14},
publisher={Penerbit UKM},
}
Article received:
Accepted for publication:
Available online:
51 (2017) 159 – 172
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