File(s) under permanent embargo
Risk management committees and firm performance
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.
History
Publication title
Australian Journal of ManagementPagination
1-20ISSN
0312-8962Department/School
TSBEPublisher
Sage Publications Ltd.Place of publication
United KingdomRights statement
Copyright 2020 The AuthorsRepository Status
- Restricted