Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms

This study attempts to examine the effect of the Risk Management Committee on firm performance, and the intervening effect of the Risk Management Committee on the relationship between Corporate Governance, Firm Size, Financial Reporting Risk, and Firm Performance. Using the purposive sampling method...

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Main Authors: Edyanus Herman Halim, Gita Mustika, Ria Nelly Sari, Rita Anugerah, Zuraidah Mohd-Sanusi
Format: Article
Language:English
Published: Centre of Sociological Research, Szczecin 2017-12-01
Series:Journal of International Studies
Subjects:
Online Access:http://jois.eu/?393,en_corporate-governance-practices-and-financial-performance-the-mediating-effect-of-risk-management-committee-at-manufacturing-firms
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author Edyanus Herman Halim
Gita Mustika
Ria Nelly Sari
Rita Anugerah
Zuraidah Mohd-Sanusi
author_facet Edyanus Herman Halim
Gita Mustika
Ria Nelly Sari
Rita Anugerah
Zuraidah Mohd-Sanusi
author_sort Edyanus Herman Halim
collection DOAJ
description This study attempts to examine the effect of the Risk Management Committee on firm performance, and the intervening effect of the Risk Management Committee on the relationship between Corporate Governance, Firm Size, Financial Reporting Risk, and Firm Performance. Using the purposive sampling method, 299 firms were selected as the sample. This study used secondary data obtained from the companies’ annual reports, and the data was then analyze using SPSS, version 20.0. The results of this study indicate that the entire research hypothesis is accepted. This study found that the Risk Management Committee affects firm performance, and that Risk Management Committee acts as the intervening variable in the relationship between corporate governance, firm size, and financial reporting risk on firm performance. The existence of RMC would facilitate the company to control better the quality of financial reporting risks.
format Article
id doaj-art-c1b6a67c84574537b583e1e0e86ca943
institution DOAJ
issn 2071-8330
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language English
publishDate 2017-12-01
publisher Centre of Sociological Research, Szczecin
record_format Article
series Journal of International Studies
spelling doaj-art-c1b6a67c84574537b583e1e0e86ca9432025-08-20T03:23:27ZengCentre of Sociological Research, SzczecinJournal of International Studies2071-83302306-34832017-12-0110410.14254/2071-8330.2017/10-4/21Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firmsEdyanus Herman Halim0Gita Mustika1Ria Nelly Sari2Rita Anugerah3Zuraidah Mohd-Sanusi4Department of Management, Faculty of Economics, Universitas RiauDepartment of Accounting, Faculty of Economics, Universitas RiauDepartment of Accounting, Faculty of Economics, Universitas RiauDepartment of Accounting, Faculty of Economics, Universitas RiauAccounting Research Institute, Universiti Teknologi MARAThis study attempts to examine the effect of the Risk Management Committee on firm performance, and the intervening effect of the Risk Management Committee on the relationship between Corporate Governance, Firm Size, Financial Reporting Risk, and Firm Performance. Using the purposive sampling method, 299 firms were selected as the sample. This study used secondary data obtained from the companies’ annual reports, and the data was then analyze using SPSS, version 20.0. The results of this study indicate that the entire research hypothesis is accepted. This study found that the Risk Management Committee affects firm performance, and that Risk Management Committee acts as the intervening variable in the relationship between corporate governance, firm size, and financial reporting risk on firm performance. The existence of RMC would facilitate the company to control better the quality of financial reporting risks.http://jois.eu/?393,en_corporate-governance-practices-and-financial-performance-the-mediating-effect-of-risk-management-committee-at-manufacturing-firmscorporate governancefirm sizefinancial reporting riskrisk managementfirm performance
spellingShingle Edyanus Herman Halim
Gita Mustika
Ria Nelly Sari
Rita Anugerah
Zuraidah Mohd-Sanusi
Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms
Journal of International Studies
corporate governance
firm size
financial reporting risk
risk management
firm performance
title Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms
title_full Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms
title_fullStr Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms
title_full_unstemmed Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms
title_short Corporate governance practices and financial performance: The mediating effect of risk management committee at manufacturing firms
title_sort corporate governance practices and financial performance the mediating effect of risk management committee at manufacturing firms
topic corporate governance
firm size
financial reporting risk
risk management
firm performance
url http://jois.eu/?393,en_corporate-governance-practices-and-financial-performance-the-mediating-effect-of-risk-management-committee-at-manufacturing-firms
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AT rianellysari corporategovernancepracticesandfinancialperformancethemediatingeffectofriskmanagementcommitteeatmanufacturingfirms
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