Title: The influence of risk management committees on the financial performance of non-financial companies in Malaysia

Authors: Mourad Boudiab; Suhaimi Ishak; Redhwan Ahmed Ali Al-Dhamari

Addresses: Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, 06010, Sintok, Kedah, Malaysia ' Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, 06010, Sintok, Kedah, Malaysia ' Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, 06010, Sintok, Kedah, Malaysia

Abstract: This study explores the effect of the RMC of Malaysian public listed firms towards firm performance. This study attempts to determine by using recent available financial data whether the RMC characteristics are expected to be effective in enhancing firm performance. The RMC separation, interlocking membership, members' independence, and experience as a tool of measurement of RMC on the ROA as a measuring tool of accounting and market performance, respectively. Also, board characteristics, leverage, ownership concentration, and firm age as control variables. The results derived suggest that separate RMCs and independent RMCs are negatively and significantly linked with firm performance, while other RMC characteristics are found to be insignificant in the current study.

Keywords: RMC; risk management committee; financial performance; non-financial companies; Malaysia; separate RMC; RMC qualification; RMC independence; RMC interlocking.

DOI: 10.1504/IJTGM.2022.128119

International Journal of Trade and Global Markets, 2022 Vol.16 No.1/2/3, pp.47 - 58

Received: 18 Feb 2020
Accepted: 19 Mar 2020
Published online: 06 Jan 2023 *

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