Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]

Janggu, Tamoi and Sawani, Yussri and Yusoff, Haslinda and Darus, Faizah and Mohamed Zain, Mustaffa (2017) Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]. Management & Accounting Review (MAR), 16 (2). pp. 1-16. ISSN 2550-1895

Abstract

This article deals with the growing pressures and demands for emerging risk reporting that may help interested users assess the importance of social risk management for sustainable development. The objectives of this study were to examine the influence of individual and institutional ownership and stakeholders on social risk disclosures and the joint effects on firms’ financial performances. A content analysis on the 2013 and 2014 annual reports of all plantation companies was carried out and analyzed using partial least square (SEM_PLS) software version 3.2. Based on the tests, we found significant relationships between institutional ownership and the number of stakeholders with social risk disclosures. However, there were no significant relationships between individual ownership and social risk disclosures. In addition, we found significant relationships between social risks and firms’ financial performances. These findings revealed that institutional shareholders and the number of stakeholders had a significant influence in deciding the disclosure of social risk information. Interestingly to note that social risk information was found to be statistically significant on firms’ financial performance as measured by the firms’ net profits. This paper, therefore, endorsed the growing demand to fully embed social risk management in companies’ operations by both institutional shareholders and stakeholders in general.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Janggu, TamoiUNSPECIFIED
Sawani, YussriUNSPECIFIED
Yusoff, HaslindaUNSPECIFIED
Darus, FaizahUNSPECIFIED
Mohamed Zain, MustaffaUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Risk management. Risk in industry. Operational risk
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Management & Accounting Review (MAR)
Journal: UiTM Journal > Management & Accounting Review
ISSN: 2550-1895
Volume: 16
Number: 2
Page Range: pp. 1-16
Item ID: 30267
Uncontrolled Keywords: Social Risk, Sustainability, Disclosure, Content Analysis, Malaysia
URI: http://ir.uitm.edu.my/id/eprint/30267

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