Jia, J and Li, Z and Munro, L, Risk management committee and risk management disclosure: evidence from Australia, Pacific Accounting Review, 31, (3) pp. 438-461. ISSN 0114-0582 (2019) [Refereed Article]
Copyright © 2019, Emerald Publishing Limited
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 membersí 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.
|Item Type:||Refereed Article|
|Keywords:||human capital, risk management disclosure, risk management committee|
|Research Division:||Commerce, Management, Tourism and Services|
|Research Group:||Strategy, management and organisational behaviour|
|Research Field:||Organisation and management theory|
|Objective Division:||Expanding Knowledge|
|Objective Group:||Expanding knowledge|
|Objective Field:||Expanding knowledge in commerce, management, tourism and services|
|UTAS Author:||Jia, J (Dr Jing Jia)|
|Web of Science® Times Cited:||8|
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