Risk Management Committee Attributes and Firm Performance

We investigate the impact of risk management committee attributes on firm performance for a sample of 37 finance companies listed on the Malaysian stock exchange covering period from 2007 financial year to 2011. The result indicates that a committee composed of majority independent directors positively enhances firm market valuation and negatively affects accounting returns. Independent committee chair was found to positively enhance accounting returns while prior executive experience of directors enhances both accounting returns and market valuation of the companies. Lastly, presence of executive on RMC shows a significant negative relationship with ROA. The result supports agency theory which suggests that independent directors are in a better position to monitor the executive and protect the interest of the various stakeholders. In addition, the result suggests that regulatory agencies should consider recommending finance companies to have directors with prior executive experience to serve on risk management committee.

• Publication year

  2015

• Venue

  Unknown venue

• Publication date

  2015-12-10

• Fields of study

  Business, Economics

• Identifiers
  DOI 10.5296/IFB.V2I2.8580
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• The new model of governance and risk management for financial institutions

  2012cited by this paper
• Is the risk management committee only a procedural compliance

  2012cited by this paper
• Corporate Governance and Performance in the Wake of the Financial Crisis: Evidence from US Commercial Banks

  2011cited by this paper
• A Configurational Approach to Comparative Corporate Governance

  2011cited by this paper
• Committee Independence and Financial Institution Performance During the 2007–08 Credit Crunch: Evidence from a Multi‐Country Study

  2011cited by this paper
• Corporate Governance Research in Accounting and Auditing: Insights, Practice Implications, and Future Research Directions

  2011cited by this paper
• The impact of risk on technical and scale efficiency: empirical evidence from the China banking sector

  2010cited by this paper
• Corporate governance mechanisms and extent of disclosure: Evidence from listed companies in Malaysia

  2010cited by this paper
• Executive Compensation and Corporate Governance in Financial Firms: The Case for Convertible Equity-Based Pay

  2010cited by this paper
• Do Independence and Financial Expertise of the Board Matter for Risk Taking and Performance?

  2010cited by this paper
• Ownership structure, corporate governance and corporate performance in Malaysia

  2010cited by this paper
• Basel II and Extreme Risk Analysis

  2010cited by this paper
• Conflicting Objectives within the Board: Evidence from Overlapping Audit and Compensation Committee Members

  2009cited by this paper
• Board Committees, CEO Compensation, and Earnings Management

  2009cited by this paper
• Audit Committee Characteristics And Risk Management Of Malaysian Listed Firms

  2009influential reference
• Corporate governance, firm characteristics and risk management committee formation in Australian companies

  2009cited by this paper
• Internal Corporate Governance Structures and Firm Financial Performance: Evidence from South African Listed Firms

  2009cited by this paper
• Shelter from subprime

  2008cited by this paper
• The audit committee: How should it handle ERM?

  2008cited by this paper
• Rethinking Capital Regulation

  2008cited by this paper
• Corporate Governance and Performance of Banking Firms: Evidence from Asian Emerging Markets

  2007cited by this paper
• A Functional Perspective of Financial Intermediation

  2007cited by this paper
• Valuation impact of Sarbanes¿Oxley: Evidence from disclosure and governance within the financial services industry

  2006cited by this paper
• Risk, capital requirements, and the asset structure of companies

  2006cited by this paper
• Risk Management and Corporate Governance: The Importance of Independence and Financial Knowledge for the Board and the Audit Committee

  2005cited by this paper
• Enterprise risk management: An empirical analysis of factors associated with the extent of implementation

  2005cited by this paper
• The Determinants of Enterprise Risk Management: Evidence from the Appointment of Chief Risk Officers

  2003cited by this paper
• Factors Associated with the Development of Board Sub-committees

  2002cited by this paper
• Initial Conditions and Moment Restrictions in Dynamic Panel Data Models

  1998cited by this paper
• The Strategic Use of Corporate Board Committees

  1987cited by this paper
• journal homepage: www.elsevier.com/locate/jbf

  year unknowncited by this paper

• Committee Diversity Effect on Corporate Investment Risk Practices

  2025cites this paper
• Risk management committee and firm performance: The moderating effect of political connection

  2025influential citation
• The Effect of Corporate Governance Attributes on Risk Management Practices of Nepalese Commercial Banks

  2024cites this paper
• Do the attributes of a risk management committee affect company performance? A comparative study before and after the COVID-19 pandemic

  2024cites this paper
• Board attributes, risk management and financial performance: Insights from Iraq

  2024cites this paper
• The effect of the board of directors on financial performance and the existence of risk management as an intervening variable

  2024cites this paper
• Risk management committee and earnings management: evidence from an emerging market

  2024cites this paper
• Does Corporate Governance and Quality of Disclosure Affect Firm Performance? An Empirical Study on Indian Banks

  2023cites this paper
• The role of risk management committee between risk-taking behavior and companies’ performance

  2023cites this paper
• THE MODERATING EFFECT OF SHARIAH COMPLIANCE ON THE RELATIONSHIP BETWEEN CORPORATE RISK TAKING AND FIRM PERFORMANCE

  2023cites this paper
• Board risk committee composition and risk-taking of deposit money banks in Nigeria

  2023cites this paper
• The relationship between corporate governance mechanisms and integrated reporting practices and their impact on sustainable development goals: evidence from South Africa

  2023cites this paper
• The effect of risk management committee characteristics on a company’s performance in an emerging country

  2023influential citation
• Risk Committee and Risk Disclosure Quality: Evidence from Listed Insurance Firms in Nigeria

  2023cites this paper
• Board of directors and financial performance: the role of risk management in Palestinian-listed companies

  2023cites this paper
• Do sustainability committee characteristics affect CSR performance? Evidence from India

  2022cites this paper
• Impact of the board of directors on financial performance and company capital: Risk management as an intervening variable

  2022cites this paper
• Risk Committee Effectiveness and Financial Performance Indicator of Quoted Firms in Selected African Countries

  2022cites this paper
• ANALISIS KARAKTERISTIK KOMITE RISIKO TERHADAP KINERJA KEUANGAN

  2022cites this paper
• Do risk management committee characteristics influence the market value of firms?

  2021cites this paper
• The Effectiveness of The Risk Committee, Political Relations and Company Performance in the Banking Industry in Indonesia

  2021cites this paper
• The effect of a separate risk management committee (RMC) towards firms' performances on consumer goods sector in Malaysia

  2021cites this paper
• RMC AND FIRM'S PERFORMANCE SHOULD THE ESTABLISHMENT REMAIN VOLUNTARY FOR LISTED COMPANIES IN MALAYSIA?

  2021cites this paper
• Risk Management Committee Attributes: A Review of the Literature and Future Directions

  2021influential citation
• Value-relevance of reported changes in fair values and measurement-related fair value disclosures: evidence from the Australian real estate industry

  2021cites this paper
• Do risk management committee characteristics influence the market value of firms?

  2021cites this paper
• The impact of corporate governance and agency effect on earnings management – A test of the dual banking system

  2020cites this paper
• Effects of board characteristics, audit committee and risk management on corporate performance: evidence from Palestinian listed companies

  2020cites this paper
• The impact of political connection and risk committee on corporate financial performance: evidence from financial firms in Malaysia

  2020cites this paper
• THE IMPACT OF AUDIT QUALITY, AUDIT COMMITTEE AND FINANCIAL REPORTING QUALITY: EVIDENCE FROM MALAYSIA

  2020cites this paper
• An Investigation on the Impact of Audit Quality, Audit Committee and Financial Reporting Quality: Evidence from Malaysia

  2020cites this paper
• Malaysian Risk Management Committees and Firms’ Financial Performance

  2020cites this paper
• Relationship between Risk Committee Existence and Financial Performance of Commercial Banks in Kenya

  2019influential citation
• Corporate governance, risky business and construction industry: a divergence between Bursa and Construction Industry Development Board (CIDB) Klang Valley, Malaysia

  2019cites this paper
• Corporate Governance and Informational Efficiency - Evidence from the Malaysian Construction Sector

  2019influential citation
• Corporate Governance, Small Medium Enterprises (SMEs) and Firm’s Performance: Evidence from Construction Business, Construction Industry Development Board (CIDB) Malaysia

  2018cites this paper
• The Effect of Risk Management Committee Attributes and Board Financial Knowledge on the Financial Performance of Listed Banks in Nigeria

  2018cites this paper
• Risk Management Committee and Real Earnings Management Through Sales: Evidence from Nigeria

  2018cites this paper
• Corporate Governance Practices and Financial Performance : the Mediating Effect of Risk Management Committee at Manufacturing Firms

  2017cites this paper
• Risk management committee, ownership structure and financial performance

  2017cites this paper
• RISK MANAGEMENT COMMITTEE ATTRIBUTES AND FINANCIAL PERFORMANCE OF SELECTED DEPOSIT MONEY BANKS IN NIGERIA

  year unknowninfluential citation