Title: Management accounting insight via a new perspective on risk management - companies' profitability relationship
Authors: Tariq Tawfeeq Yousif Alabdullah
Addresses: Accounting Department, College of Administration and Economics, University of Basrah, Basrah, Iraq
Abstract: This study aims at introducing a new insight to the literature in the field of management accounting. It investigates the link between predictor and predicted variables; independent managers in the board and risk management committee, and their impact on companies' profitability represented by management accounting measurements ROE and ROA, and company's profitability represented by market share. I utilised multiple regression to analyse available data for Jordanian industrial firms for the ended year 2017. Unlike prior studies, I find an insignificant link between independent managers and company's profitability represented by ROE and market share. Furthermore, risk management committee has a significant relationship with ROE and market share. The originality of this study is its concern on the effect of different factors on profitability is remaining somewhat under-researched. Thus, the current research is the first of its kind that investigates risk management as a predictor variable in its link with market share.
Keywords: independent manager; risk management committee; RMC; companies' profitability; developing countries.
International Journal of Intelligent Enterprise, 2022 Vol.9 No.2, pp.244 - 257
Received: 13 Feb 2019
Accepted: 26 Sep 2019
Published online: 07 Apr 2022 *