Institutional investors, risk management and audit committees influence on non-financial risk disclosure

This study examines the complementary or substitution role of audit committee independence (ACInd), risk management committee (RMC) and institutional investors on non-financial risk disclosure (NFRD). While the existing literature provides inconclusive evidence on the individual influences of va...

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Main Authors: Adibah Jamil,, Mohamat Sabri Hassan,, Norman Mohd Saleh,, Rubayah Yakob,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2022
Online Access:http://journalarticle.ukm.my/20706/1/54874-194332-1-PB.pdf
http://journalarticle.ukm.my/20706/
https://ejournal.ukm.my/pengurusan/issue/view/1547
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spelling my-ukm.journal.207062022-12-12T06:22:54Z http://journalarticle.ukm.my/20706/ Institutional investors, risk management and audit committees influence on non-financial risk disclosure Adibah Jamil, Mohamat Sabri Hassan, Norman Mohd Saleh, Rubayah Yakob, This study examines the complementary or substitution role of audit committee independence (ACInd), risk management committee (RMC) and institutional investors on non-financial risk disclosure (NFRD). While the existing literature provides inconclusive evidence on the individual influences of various monitoring mechanisms on NFRD, it is necessary to examine whether their combined monitoring roles are present as many monitoring mechanisms coexist within an organisation. This study examined a sample of 864 Bursa Malaysia companies from 2016 to 2018. The Delphi technique is used to finalise NFRD items. This study performed regression and simple slope tests to examine the complementary and substitutive role of ACInd, RMC and institutional investors. The findings show that RMC is substitutive to AcInd towards NFRD. This demonstrates that RMC has the expertise and potential to lessen any information asymmetry, making it the most reliable monitoring mechanism. These findings indicate the significance of establishing a standalone RMC among Malaysian companies to supervise the NFRD reporting. Penerbit Universiti Kebangsaan Malaysia 2022 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20706/1/54874-194332-1-PB.pdf Adibah Jamil, and Mohamat Sabri Hassan, and Norman Mohd Saleh, and Rubayah Yakob, (2022) Institutional investors, risk management and audit committees influence on non-financial risk disclosure. Jurnal Pengurusan, 65 . pp. 1-15. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1547
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description This study examines the complementary or substitution role of audit committee independence (ACInd), risk management committee (RMC) and institutional investors on non-financial risk disclosure (NFRD). While the existing literature provides inconclusive evidence on the individual influences of various monitoring mechanisms on NFRD, it is necessary to examine whether their combined monitoring roles are present as many monitoring mechanisms coexist within an organisation. This study examined a sample of 864 Bursa Malaysia companies from 2016 to 2018. The Delphi technique is used to finalise NFRD items. This study performed regression and simple slope tests to examine the complementary and substitutive role of ACInd, RMC and institutional investors. The findings show that RMC is substitutive to AcInd towards NFRD. This demonstrates that RMC has the expertise and potential to lessen any information asymmetry, making it the most reliable monitoring mechanism. These findings indicate the significance of establishing a standalone RMC among Malaysian companies to supervise the NFRD reporting.
format Article
author Adibah Jamil,
Mohamat Sabri Hassan,
Norman Mohd Saleh,
Rubayah Yakob,
spellingShingle Adibah Jamil,
Mohamat Sabri Hassan,
Norman Mohd Saleh,
Rubayah Yakob,
Institutional investors, risk management and audit committees influence on non-financial risk disclosure
author_facet Adibah Jamil,
Mohamat Sabri Hassan,
Norman Mohd Saleh,
Rubayah Yakob,
author_sort Adibah Jamil,
title Institutional investors, risk management and audit committees influence on non-financial risk disclosure
title_short Institutional investors, risk management and audit committees influence on non-financial risk disclosure
title_full Institutional investors, risk management and audit committees influence on non-financial risk disclosure
title_fullStr Institutional investors, risk management and audit committees influence on non-financial risk disclosure
title_full_unstemmed Institutional investors, risk management and audit committees influence on non-financial risk disclosure
title_sort institutional investors, risk management and audit committees influence on non-financial risk disclosure
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2022
url http://journalarticle.ukm.my/20706/1/54874-194332-1-PB.pdf
http://journalarticle.ukm.my/20706/
https://ejournal.ukm.my/pengurusan/issue/view/1547
_version_ 1752147417098092544
score 13.211869