Do risk management committee characteristics influence the market value of firms?

Malik, Masturah; Shafie, Rohami; Ismail, Ku Nor Izah Ku

doi:10.1057/s41283-021-00073-8

Cited by 11 publications

(11 citation statements)

References 40 publications

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“…These results do not support Prinsloo et al (2015) and Keong et al (2020) (Malik et al, 2023) that the concentration of share ownership, influenced by management control, significantly impacts organizational culture and decision-making. For monitoring purposes, large shareholders rely more on internal governance mechanisms where they can exercise certain controls rather than increasing the scope of external audits.…”

Section: Effects Of Concentrated Ownership On Ermcontrasting

confidence: 67%

“…Furthermore, the findings of Keong (Malik et al, 2023) support the premise that there is a positive relationship between dispersed ownership structure and the adoption of corporate risk management and a negative relationship between managerial ownership and corporate risk management. Vintilă and Gherghina (2014) says that firm value is determined using Tobin's Q ratio, which is modified to consider the diversity of sample industry memberships.…”

Section: ) the Concentration Of Ownership Of Enterprise Risk Managementmentioning

confidence: 70%

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Determinants of Erm Quality and Its Impact on Company Value

Hidayah,

Azhar,

Setiany

et al. 2024

Business: Theory and Practice

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Company value results from how well a company has managed its resources to achieve business benefits. However, there are always risks associated with conducting business, and effective risk management (ERM) can help reduce those risks so that they stay in the way of the entity’s performance goals. This study examines the factors that affect ERM quality, such as company size, auditor caliber, concentrated ownership, and director oversight, and how this affect business success. Purposive sampling produced a sample of 552-panel data used in this study’s research of manufacturing firms in Indonesia and Malaysia. With the aid of STATA software, this study discovered a favorable relationship between auditor quality and ERM and also impact firm size, auditor quality, concentrated ownership, and ERM on company value. The expansion test revealed that while the quality of auditors in Malaysian companies had a positive effect on firm value while those in Indonesia did not, and vice versa, the quality of auditors in Indonesian companies had a stronger positive effect on ERM quality than the quality of auditors in Malaysian companies. In contrast to businesses in Malaysia, monitoring of directors has a beneficial impact on a company’s worth in Indonesia.

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Section: Effects Of Concentrated Ownership On Ermcontrasting

confidence: 67%

Section: ) the Concentration Of Ownership Of Enterprise Risk Managementmentioning

confidence: 70%

Determinants of Erm Quality and Its Impact on Company Value

Hidayah,

Azhar,

Setiany

et al. 2024

Business: Theory and Practice

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“…There is also a big difference between the minimum value of 18.2% and the maximum value of 80%, indicating that Chinese companies are making efforts to improve governance, but there are big differences among companies. The average number of board meetings annually was 9.574, higher than the 8.546 reported by [58] for UK data. The mean of CEO duality (Cduily) was 75.9%.…”

Section: Descriptive Statistical Analysismentioning

confidence: 54%

The Impact of Board Governance on Firm Risk among China’s A-Share Market-Listed Companies from 2010 to 2019

Wang

2023

Sustainability

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This paper selects firm downside risk and firm upside risk as proxy variables of enterprise risk, and the proportion of independent directors as a proxy variable of board governance. Using the panel data of Chinese listed companies from 2010 to 2019, a multiple linear regression model is established to empirically study the impact of supervisory function and advisory function of board governance on the downside risk and the upside risk, to test whether the two functions of the board of directors play a role in the enterprise risk management (ERM). The internal mechanism and boundary conditions of board governance that affect firm risk are also explored in this paper. It is found that the sample enterprises pay more attention to the board‘s supervisory function. At the same time, they reduce the firm’s overall risk by reducing the downside risk and the upside risk while performing this function. We also identify that boards are more likely to use meetings to communicate and strategize to prevent upside risks than to identify and control downside risks. Finally, boards are negatively affected by CEO duality in performing their oversight functions.

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“…Consequently, to ensure a continuous increase in the value of the company, it is necessary to implement efficient measures for its management (Zaytsev et al, 2020). It is noteworthy that processes that promote efficient risk monitoring are directly related to 6/16 performance, thus increasing the market value of companies (Malik et al, 2021).…”

Section: Increase In Market Valuementioning

confidence: 99%

Impact of critical success factors and risk management on organizational results

Rampini,

Berssaneti

2024

BJO&PM

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Goal: The purpose of this study is to identify how do risk management processes and critical success factors (CSFs) impact organizational results. Design / Methodology / Approach: A qualitative research approach was applied, using a multiple case study, involving six organizations in public and private sectors of the Brazilian economy. Results: The support given by top management, the existence of a corporate governance structure, the integration of risk management across all organizational functions and the importance of stakeholder participation, both in public and private organizations, presented aspects that impact organizational outcomes, such as the preservation of reputation, increase in market value, and the creation of competitive advantage. Limitations of investigation: The present research considered only Brazilian organizations, which is a limiting factor for a possible generalization of the findings. The research can be extended to other organizations and countries, so that other contexts can be discussed and analyzed. Practical implications: Based on the findings, we designed an Organizational Results Matrix (ORM), which aims to support managers dealing with factors conditioning the company´s results. Originality / Value: The original value of the research lies in the presentation of ORM. This matrix may enrich the quality and rigor of the actions carried out in public and private sectors, providing to managers an insight into the main dimensions of CSFs and risk management process and their influence on the expected results.

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Do risk management committee characteristics influence the market value of firms?

Cited by 11 publications

References 40 publications

Determinants of Erm Quality and Its Impact on Company Value

Determinants of Erm Quality and Its Impact on Company Value

The Impact of Board Governance on Firm Risk among China’s A-Share Market-Listed Companies from 2010 to 2019

Impact of critical success factors and risk management on organizational results

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