Articlegreen2019

Risk management committee and risk management disclosure: evidence from Australia

45 citations0/0 files storedPacific Accounting Review

No readable copy stored yet — this record is metadata only.

Auditing, Earnings Management, Governance Risk Management in Financial Firms Corporate Governance and Financial Management

Abstract

Purpose This paper aims to examine the relationship between risk management committees (RMCs) and risk management disclosure (RMD) quality. Specifically, the existence of stand-alone RMCs and a number of RMC characteristics, including RMC size, RMC independence, number of RMC meetings and RMC members’ human capital is investigated. Design/methodology/approach The sample comprises top 100 Australian Securities Exchange (ASX)-listed companies during the period between 2010 and 2012, when RMD began to be guided by detailed recommendations in Australia. Following the RMD framework used by Jia et al. (2016), RMD quality is measured based on its quantity, relevance, width and depth. Ordinary least squares (OLS) regressions were used to test the relationship between stand-alone RMC, RMC characteristics and RMD quality. Findings The results show that the existence of a stand-alone RMC, the human capital of RMC and RMC size are positively associated with RMD quality. In contrast, RMC independence and the number of RMC meetings are not found to have a significant association with RMD quality. Originality/value This study contributes to the current RMD literature by investigating whether a stand-alone RMC and different RMC characteristics are associated with RMD quality. The results of this study provide useful and new empirical evidence about the relationship between RMCs and RMD quality for researchers, companies, and regulators.

Citations in this library

Stored only when both papers are in the corpus — 45 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 1960A Coefficient of Agreement for Nominal Scales 1968Weighted kappa: Nominal scale agreement provision for scaled disagreement or partial credit.2001Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature 2002Content Analysis in Mass Communication: Assessment and Reporting of Intercoder Reliability 2003Earnings management and corporate governance: the role of the board and the audit committee 2007Corporate Governance, Accounting Outcomes, and Organizational Performance 1999Exploring the reliability of social and environmental disclosures content analysis

Cited by

2023The relationship between corporate governance mechanisms and integrated reporting practices and their impact on sustainable development goals: evidence from South Africa 2022Climate change performance and financial distress 2022Risk management committees and readability of risk management disclosure 2021RETRACTED: The effect of a separate risk management committee (RMC) towards firms' performances on consumer goods sector in Malaysia 2023

Imported from OpenAlex (CC0) — nothing here is generated.