Audit committee characteristics and risk management of Malaysian listed firms / Puan Yatim

Yatim, Puan (2009) Audit committee characteristics and risk management of Malaysian listed firms / Puan Yatim. Malaysian Accounting Review, 8 (1). pp. 19-36. ISSN 1675-4077

Official URL: https://mar.uitm.edu.my/

Abstract

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.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Yatim, Puan
UNSPECIFIED
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Malaysian Accounting Review
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 1675-4077
Volume: 8
Number: 1
Page Range: pp. 19-36
Keywords: Audit committee, Corporate governance, Risk management, Internal control
Date: July 2009
URI: https://ir.uitm.edu.my/id/eprint/258
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