The relationship between audit committee effectiveness and the level of corporate risk disclosure: the relevance of preand post-Mccg 2012 / Sarliza Saari … [et al.]

Saari, Sarliza and Mohd Suffian, Mohd Taufik and Abd Ghafar, Mohd Shatari and Mohamed Azhari, Muhammad Iqbal (2020) The relationship between audit committee effectiveness and the level of corporate risk disclosure: the relevance of preand post-Mccg 2012 / Sarliza Saari … [et al.]. Management & Accounting Review (MAR), 19 (1). pp. 267-296. ISSN 2550-1895

Abstract

This study examined the relationship between audit committee effectiveness and the level of corporate risk disclosure amongst Malaysian listed companies pre- and post-Malaysian Code of Corporate Governance 2012. Content analysis was employed. A total of 122 firm-year observations was examined in order to measure the extent of risk disclosure against audit committee effectiveness. The findings reveal only audit committee size and diligence are significant in explaining the variations in corporate risk disclosure for pre- and post-MCCG 2012. This indicates that audit committee size does matter in assisting the revelation of corporate risk disclosure. It also signifies that audit committees are responsible and discharge their duties accordingly with reference to the higher number of audit committee meetings. An unexpected result was also found in this study where an inverse relationship was detected between audit committee independence and corporate risk disclosure. The result is contrary to the requirement of MCCG 2012 that emphasizes the importance of an independent director under its Principle 3.5. Further, the result also shows that the audit committee effectiveness have increasing in the post-MCCG 2012 period compared to pre-MCCG 2012 in determining the extent of risk disclosure of the sampled firms.

Metadata

Item Type: Article
Creators:
CreatorsEmail / ID. Num
Saari, SarlizaUNSPECIFIED
Mohd Suffian, Mohd TaufikUNSPECIFIED
Abd Ghafar, Mohd ShatariUNSPECIFIED
Mohamed Azhari, Muhammad IqbalUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Risk management. Risk in industry. Operational risk
H Social Sciences > HF Commerce > Personnel management. Employment management
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: 19
Number: 1
Page Range: pp. 267-296
Item ID: 31049
Uncontrolled Keywords: Corporate risk disclosure, Audit committee characteristics, Financial report
URI: http://ir.uitm.edu.my/id/eprint/31049

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