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Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions

Poor risk management has been a major concern in Malaysia's context over the years with negative consequences including threat of business survival, the possibility of bankruptcy, huge financial losses, and deteriorated financial performance. However, the risk management committee (RMC), which...

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Main Author: Lim, Zhin Wen
Format: Thesis
Language:English
English
Published: 2024
Subjects:
HD61 Risk Management
Online Access:https://etd.uum.edu.my/11419/1/s831657_01.pdf
https://etd.uum.edu.my/11419/2/s831657_02.pdf
https://etd.uum.edu.my/11419/
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spelling my.uum.etd.114192024-10-29T04:55:00Z https://etd.uum.edu.my/11419/ Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions Lim, Zhin Wen HD61 Risk Management Poor risk management has been a major concern in Malaysia's context over the years with negative consequences including threat of business survival, the possibility of bankruptcy, huge financial losses, and deteriorated financial performance. However, the risk management committee (RMC), which is claimed to be an effective corporate governance tool to enhance risk management practices, is not widely adopted among Malaysian nonfinancial institutions. The existing literature regarding RMC and firm financial performance is also limited, especially in the Malaysian context. Hence, this study is conducted to examine the associations between characteristics of RMC including, the separation (RMCS), the size (RMCSZ), and independence of RMC (RMCIND), with the firm financial performance of return on assets (ROA). The study is conducted among Malaysian non-financial institutions that are listed on the main market of Bursa Malaysia as of the year 2022. A total sample size of 250 companies is randomly selected from 11 non-financial sectors for further analysis. Several data analysis techniques, including descriptive statistics, correlation coefficient, and multiple regression, were adopted to analyze the collected data. Assumption tests of outlier detection, multi collinearity, normality, and homoscedasticity were also adopted to examine the validity and reliability of the data. Overall, the findings of this study suggested that RMCS and RMCIND have insignificant negative associations with ROA, while RMCSZ has an insignificant positive association. This study has contributed to the existing literature as empirical evidence for past researchers’ claims. In addition, this study also provides insight into the influence of RMC on a firm financial performance which could be valuable for the companies, shareholders, investors, policymakers, as well as academicians. 2024 Thesis NonPeerReviewed text en https://etd.uum.edu.my/11419/1/s831657_01.pdf text en https://etd.uum.edu.my/11419/2/s831657_02.pdf Lim, Zhin Wen (2024) Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions. Masters thesis, Universiti Utara Malaysia.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Electronic Theses
url_provider http://etd.uum.edu.my/
language English
English
topic HD61 Risk Management
spellingShingle HD61 Risk Management
Lim, Zhin Wen
Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions
description Poor risk management has been a major concern in Malaysia's context over the years with negative consequences including threat of business survival, the possibility of bankruptcy, huge financial losses, and deteriorated financial performance. However, the risk management committee (RMC), which is claimed to be an effective corporate governance tool to enhance risk management practices, is not widely adopted among Malaysian nonfinancial institutions. The existing literature regarding RMC and firm financial performance is also limited, especially in the Malaysian context. Hence, this study is conducted to examine the associations between characteristics of RMC including, the separation (RMCS), the size (RMCSZ), and independence of RMC (RMCIND), with the firm financial performance of return on assets (ROA). The study is conducted among Malaysian non-financial institutions that are listed on the main market of Bursa Malaysia as of the year 2022. A total sample size of 250 companies is randomly selected from 11 non-financial sectors for further analysis. Several data analysis techniques, including descriptive statistics, correlation coefficient, and multiple regression, were adopted to analyze the collected data. Assumption tests of outlier detection, multi collinearity, normality, and homoscedasticity were also adopted to examine the validity and reliability of the data. Overall, the findings of this study suggested that RMCS and RMCIND have insignificant negative associations with ROA, while RMCSZ has an insignificant positive association. This study has contributed to the existing literature as empirical evidence for past researchers’ claims. In addition, this study also provides insight into the influence of RMC on a firm financial performance which could be valuable for the companies, shareholders, investors, policymakers, as well as academicians.
format Thesis
author Lim, Zhin Wen
author_facet Lim, Zhin Wen
author_sort Lim, Zhin Wen
title Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions
title_short Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions
title_full Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions
title_fullStr Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions
title_full_unstemmed Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions
title_sort effect of risk management committee on firm performance: a study in malaysian non-financial institutions
publishDate 2024
url https://etd.uum.edu.my/11419/1/s831657_01.pdf
https://etd.uum.edu.my/11419/2/s831657_02.pdf
https://etd.uum.edu.my/11419/
_version_ 1814938459668742144
score 13.211869

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