Audit committee characteristics and risk management of Malaysian listed firms / Puan Yatim
This study explores the association between audit committee characteristics and the establishment of a risk management committee by Malaysian listed firms. The study predicts that firms with more independent, expert, and diligent audit committees are likely to establish a stand-alone risk management...
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| Format: | Article |
| Language: | English |
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Accounting Research Institute (ARI) & Faculty of Accountancy
2009
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| Online Access: | http://ir.uitm.edu.my/id/eprint/258/ http://ir.uitm.edu.my/id/eprint/258/1/AJ_PUAN%20YATIM%20MAR%2009.pdf |
| Summary: | This study explores the association between audit committee characteristics and the establishment of a risk management committee by Malaysian listed firms. The study predicts that firms with more independent, expert, and diligent audit committees are likely to establish a stand-alone risk management committee. It is also expected that audit committees with more members are
also likely to support the establishment of a risk management committee. The
study employs a cross-sectional analysis of 690 firms listed on the Bursa
Malaysia for the financial year ending in 2003. A logistic regression analysis
is used to estimate the relationships proposed in the hypotheses. The study
finds a strong support for an association between the establishment of risk
management committee and audit committee independence, audit committee
size, and audit committee diligence. The results also show that the
establishment of a risk management committee is positively and significantly
associated with firm-specific variables such as firm size, complexity of a firm’s
operations, and the use of Big Four audit firms |
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