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:	eng eng
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
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id	my-uum-etd.11419
record_format	uketd_dc
spelling	my-uum-etd.114192024-10-29T04:55:00Z Effect of risk management committee on firm performance: A study in Malaysian non-financial institutions 2024 Lim, Zhin Wen Ramlan, Mohd Raime Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy 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 https://etd.uum.edu.my/11419/ https://etd.uum.edu.my/11419/1/s831657_01.pdf text eng 2027-05-31 staffonly https://etd.uum.edu.my/11419/2/s831657_02.pdf text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Ramlan, Mohd Raime
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
qualification_name	other
qualification_level	Master's degree
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
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2024
url	https://etd.uum.edu.my/11419/1/s831657_01.pdf https://etd.uum.edu.my/11419/2/s831657_02.pdf
_version_	1818647174559301632

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

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