Risk management committees and firm performance
Year: 2020
Type: article
Abstract: Risk management committees (RMCs) are recognised as a key corporate governance mechanism for controlling corporate risk. We examine the performance of RMCs in Australia over the period 2007–2014. We identify three performance measures related to the function of the RMC: the probability of financial distress, growth options (market to book) and return on assets. We find that firms with an RMC perform better than other firms. We also find that firms with a separately constituted RMC perform better, relative to firms where the risk management activities are absorbed into an existing committee. JEL classification: G32, G33, G34, G38
Source: Australian Journal of Management
Authors: Jing Jia, Michael E Bradbury
Institutions: University of Tasmania, Massey University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3088446643