The existence and nature of risk management committees in Australian companies

Zhang, Jiani, Subramaniam, Nava and McManus, Lisa 2007, The existence and nature of risk management committees in Australian companies, in AFAANZ 2007 : Accounting and Finance Association of Australia and New Zealand Annual Conference, [Accounting and Finance Association of Australia and New Zealand], [Gold Coast, Qld], pp. 1-36.

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Title The existence and nature of risk management committees in Australian companies
Author(s) Zhang, Jiani
Subramaniam, Nava
McManus, Lisa
Conference name Accounting and Finance Association of Australia and New Zealand. Conference (2007 : Gold Coast, Qld.)
Conference location Gold Coast, Qld.
Conference dates 1-3 July 2007
Title of proceedings AFAANZ 2007 : Accounting and Finance Association of Australia and New Zealand Annual Conference
Publication date 2007
Start page 1
End page 36
Publisher [Accounting and Finance Association of Australia and New Zealand]
Place of publication [Gold Coast, Qld]
Summary A risk management committee (RMC), as a newly evolving sub-committee of the board of directors, functions as a key governance support mechanism in the oversight an organisation’s risk management strategies, policies and processes. However, empirical evidence on the factors associated with the existence and the type of RMCs remains scant. Using an agency theory perspective, this study investigates the association between board factors such as proportion of non-executive directors, CEO duality, and board size; as well as, other firm-related factors (e.g. auditor type, industry, leverage, and complexity), and (1) the existence of a RMC, and (2) the type of RMC (namely, a separate RMC versus one that is combined with the audit committee). Data was collected from the annual reports of the top 300 ASX-listed companies. The results, based on logistic regression analyses, indicate that RMCs tend to exist in companies with an independent board chairman and larger boards. Further, the results also indicate that in comparison to companies with a combined RMC and audit committee, those with a separate RMC are more likely to have larger boards, higher financial reporting risk and lower organisational complexity. The findings of this study provide additional information on the use and design of RMCs in a voluntary setting.
Language eng
Field of Research 150205 Investment and Risk Management
150101 Accounting Theory and Standards
HERDC Research category E3.1 Extract of paper
Persistent URL http://hdl.handle.net/10536/DRO/DU:30018591

Document type: Conference Paper
Collection: School of Accounting, Economics and Finance
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