Risk Reporting Environment in Malaysia and The Influence of Corporate Governance Mechanisms

Abstract

The aim of this study is to investigate the nature of risk information within Malaysia annual report and also to investigate potential determinants who influence the risk disclosure practice. Past accounting scandals and also the failure of financial system in 2007/2008 has triggered the need for sound corporate governance and also comprehensive risk management plan. A total of 167 companies based on a random sample were chosen from Bursa Malaysia from 2008 till 2017. This study also employed content analysis to measure the level of risk information. Based on the result, it is found that for the last 10 years, companies in Malaysia has increase their disclosure practice which this can be refer from the positive upward trend graph. This study found that all the selected corporate governance is positively and significantly influenced the risk disclosure practice among listed companies in Malaysia.

Enterprise Risk Management Disclosure and Ceo Characteristics: An Empirical Study of Go Public Companies in Indonesia

“…While increasing numbers of women CEOs would seem to indicate that increased gender diversity among top executives would increase risk management disclosure, the study's findings run counter to this idea. Contrary to the findings of other studies, including those by Bufarwa et al (2020), Kartikarini and Mutmainah (2013), Kiflee et al (2020), Khandelwal et al (2020), Allini et al (2016), Panditharathna (2019), Zango et al (2016), Saggar and Singh (2017). Executive women tend to overestimate future profits while providing less detail, suggesting a preference for safety (Bamber & Wang, 2010).…”

“…Multi-gender directors' diverse backgrounds affect corporate disclosure standards. Personality, knowledge, and education may impact their views on business openness (Kiflee et al, 2020). A female director can boost strategic decision making and corporate governance because of her unique beliefs, customs, and perspectives (Rouf, 2016).…”

Proceedings of the International Conference of Applied Business and Management (ICABM2020)

“…Nesta linha de pensamento, Sanni et al (2020) obtiveram evidência empírica da existência de uma associação positiva entre o tamanho do conselho de administração e o grau de cumprimento com as IFRS por parte das empresas nigerianas, cotadas em bolsa. Contrariamente, Chantachaimongkol e Chen (2018), bem como Kiflee et al (2020) aferiram que existe uma relação negativa entre o tamanho do conselho e as práticas de divulgação, denotando que os conselhos de administração menores divulgam mais informação. Porém, Oliveira (2016), no seu estudo empírico, verificou que a variável tamanho do conselho de administração não tem uma relação estatisticamente significativa com o nível de divulgação voluntária.…”

“…Na senda deste pensamento, Liu et al (2016) e Cunha e Rodrigues (2018) aferiram que a independência dos membros do conselho de administração tem um efeito positivo significativo na qualidade da divulgação da informação financeira. Outros autores comprovaram a existência de associação positiva entre o número de membros independentes no conselho de administração e a divulgação de informação sobre riscos (Agyei-Mensah, 2017;Kiflee et al, 2020) e sobre instrumentos derivados (Lemos, 2011). Contrariamente, Ho et al (2011), Ismail e Rahman (2011), Fathi (2013, Miranda (2014) e Oliveira (2016), bem como Chantachaimongkol e Chen ( 2018) não obtiveram qualquer evidência empírica da associação entre a percentagem de membros independentes no conselho de administração e o nível de divulgação de informação.…”