The influences of Risk Management Committee and Audit Committee towards voluntary risk management disclosure
The main objective of this study is to examine the influences of committees that are being appointed to manage risk towards voluntary risk management disclosure (VRMD) among non-financial companies in Malaysia. Non-financial companies will usually appoint either Risk Management Committee (RMC) o...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2017
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| Online Access: | http://journalarticle.ukm.my/20756/1/16582-65502-1-PB.pdf |
| Summary: | The main objective of this study is to examine the influences of committees that are being appointed to manage risk
towards voluntary risk management disclosure (VRMD) among non-financial companies in Malaysia. Non-financial
companies will usually appoint either Risk Management Committee (RMC) or Audit Committee (AC) to manage their
risks. Based on resource dependence theory, this study contends that the committees provide risk management resources
particularly in terms of risk management information that could influence the VRMD. All data of VRMD, RMC and AC were
collected from companies’ annual reports by using content analysis method. The sample in this study consisted of 395
non-financial companies which were listed on Bursa Malaysia in 2011. Our multiple regression results show that RMC
presence and AC activeness increase VRMD. Our findings provide evidence that the establishment of RMC could increase
the risk management disclosure among companies in Malaysia. |
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