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, 16 (2). pp. 1-20. 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. Content analyses on the 2013 and 2014 annual reports of all plantation sector companies were 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 relationship between individual ownership and social risk disclosures. In addition, we found significant relationships between social risks and firms’ financial performances. These findings reveal that institutional shareholders and the number of stakeholders had a significant influence in deciding the disclosure of social risk information. Interestingly social risk information was found to be statistically significant on firms’ financial performance as measured by firms’ net profits. This paper, therefore, endorses 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:
CreatorsEmail / ID. Num
Janggu, TamoiUNSPECIFIED
Sawani, YussriUNSPECIFIED
Yusoff, HaslindaUNSPECIFIED
Darus, FaizahUNSPECIFIED
Mohamed Zain, MustaffaUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor > Risk management. Risk in industry. Operational risk
H Social Sciences > HD Industries. Land use. Labor > Risk management. Risk in industry. Operational risk > Malaysia
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Accountancy
Journal or Publication Title: Management & Accounting Review
Journal: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 2550-1895
Volume: 16
Number: 2
Page Range: pp. 1-20
Official URL: http://arionline.uitm.edu.my/ojs/index.php/MAR/art...
Item ID: 31159
Uncontrolled Keywords: Social Risk, Sustainability, Disclosure, Content Analysis, Malaysia
URI: http://ir.uitm.edu.my/id/eprint/31159

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