Risk management committee, ownership structure and financial performance

The role of risk management committee (RMC) under the corporate governance consist of monitoring the risk strategies, policies and risk tolerance level as well as reviewing the sufficiency of risk management policies and framework. Risk management committee performs a very important function in the...

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Main Author:	Sharifah Nabihah, Syed Yasin
Format:	Thesis
Language:	eng eng
Published:	2017
Subjects:	HD61 Risk Management
Online Access:	https://etd.uum.edu.my/6593/1/s814249_01.pdf https://etd.uum.edu.my/6593/2/s814249_02.pdf
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id	my-uum-etd.6593
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Kamardin, Hasnah
topic	HD61 Risk Management
spellingShingle	HD61 Risk Management Sharifah Nabihah, Syed Yasin Risk management committee, ownership structure and financial performance
description	The role of risk management committee (RMC) under the corporate governance consist of monitoring the risk strategies, policies and risk tolerance level as well as reviewing the sufficiency of risk management policies and framework. Risk management committee performs a very important function in the monitoring of the risk and internal control. Thus, the main objective of the study is to examine the effect of the existence of risk management committee on firm performance of companies listed in the Main Market of Bursa Malaysia. In addition, the study also examines the effect of ownership structure of director and family ownership on firm performance. ROA and ROE are used as proxy to measure the firm performance. Sample of the study is based on 20% companies in each industry excluding finance companies. Data were collected from 154companies in the financial year 2015.The study uses agency theory to predict the relationship. Descriptive analysis shows that only 18% of the sample companies have stand-alone risk management committee and 28% of the sample companies have joining risk management committee with other committees such as audit committee. The mean of family ownership is 21.93% and the mean of director ownership is 36.81%. The regression analysis revealed that there is no significant relationship between the existence of risk management committee, family ownership and director ownership with firm performance. In addition, the result indicates that only board composition, the control variable has significant negative relationship with firm performance.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Sharifah Nabihah, Syed Yasin
author_facet	Sharifah Nabihah, Syed Yasin
author_sort	Sharifah Nabihah, Syed Yasin
title	Risk management committee, ownership structure and financial performance
title_short	Risk management committee, ownership structure and financial performance
title_full	Risk management committee, ownership structure and financial performance
title_fullStr	Risk management committee, ownership structure and financial performance
title_full_unstemmed	Risk management committee, ownership structure and financial performance
title_sort	risk management committee, ownership structure and financial performance
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2017
url	https://etd.uum.edu.my/6593/1/s814249_01.pdf https://etd.uum.edu.my/6593/2/s814249_02.pdf
_version_	1747828100573429760
spelling	my-uum-etd.65932021-08-18T07:06:30Z Risk management committee, ownership structure and financial performance 2017 Sharifah Nabihah, Syed Yasin Kamardin, Hasnah College of Business (COB) College of Business HD61 Risk Management The role of risk management committee (RMC) under the corporate governance consist of monitoring the risk strategies, policies and risk tolerance level as well as reviewing the sufficiency of risk management policies and framework. Risk management committee performs a very important function in the monitoring of the risk and internal control. Thus, the main objective of the study is to examine the effect of the existence of risk management committee on firm performance of companies listed in the Main Market of Bursa Malaysia. In addition, the study also examines the effect of ownership structure of director and family ownership on firm performance. ROA and ROE are used as proxy to measure the firm performance. Sample of the study is based on 20% companies in each industry excluding finance companies. Data were collected from 154companies in the financial year 2015.The study uses agency theory to predict the relationship. Descriptive analysis shows that only 18% of the sample companies have stand-alone risk management committee and 28% of the sample companies have joining risk management committee with other committees such as audit committee. The mean of family ownership is 21.93% and the mean of director ownership is 36.81%. The regression analysis revealed that there is no significant relationship between the existence of risk management committee, family ownership and director ownership with firm performance. In addition, the result indicates that only board composition, the control variable has significant negative relationship with firm performance. 2017 Thesis https://etd.uum.edu.my/6593/ https://etd.uum.edu.my/6593/1/s814249_01.pdf text eng public https://etd.uum.edu.my/6593/2/s814249_02.pdf text eng public masters masters Universiti Utara Malaysia Abdel-Khalik, A.R. (1993), “Why do private companies demand auditing? A case for organizational loss of control”, Journal of Accounting, Auditing and Finance, Vol.8 No.1, pp.31-52 Abdullah, S. N. (2004). Board composition, CEO duality and performance among Malaysian listed companies. Corporate Governance International Journal of Business in Society, 4, 47-61. Agrawal, A., & Knoeber, C. R. (1996).Firm performance and mechanisms to control agency problems between managers and shareholders. Financial and Quantitative Analysis, 31, 377–397. doi:10.2307/2331397 Alchian, A. A., & Demsetz, H. (1972). 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Risk management committee, ownership structure and financial performance

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