The effect of risk management on financial performance with good corporate governance as a moderation variable

Mardiana, Mardiana; P, Puji Endah; Dianata, Ayyu Wafiqotun Mirza

doi:10.18860/mec-j.v0i0.5223

Cited by 12 publications

(19 citation statements)

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“…The better the moderate GCG rating, the less operating expenses, managing operating expenses efficiently, and improving the bank's financial performance, which is reflected in the increase in the ROA ratio and vice versa. The results of this study are consistent with research conducted by Akbar & Lanjarsih (2019); Mardiana et al, (2018) showing that good corporate governance is able to moderate the relationship between operational risk proxied by OEIR on financial performance.…”

Section: Resultssupporting

confidence: 91%

“…Research conducted by Laeli & Yulianto (2016) shows that GCG is able to moderate the relationship between NPL and LDR on financial performance. Meanwhile, research conducted by Akbar & Lanjarsih (2019); Mardiana et al, (2018) showed that GCG was able to moderate the relationship between OEIR to bank financial performance. H4: GCG is able to moderate the relationship between NPL and financial performance H5: GCG is able to moderate the relationship between LDR and financial performance H6: GCG is able to moderate the relationship between OEIR and financial performance Based on the background, study of theories and hypotheses, a conceptual framework for the research can be made as shown in Figure 1.…”

Section: Introductionmentioning

confidence: 99%

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Risk Management and Banking Performance With Corporate Governance as Moderating Variable

Hikmawati

Sutrisno

2021

BSE

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This research aims to analyze the effect of risk management on bank financial performance with corporate governance as a moderating variable. The independent variables used in this research are risk management, consist of credit risk (NPL), liquidity risk (LDR), and operating risk (OEIR). The dependent variable used is financial performance (ROA). Meanwhile, corporate governance as a moderating variable and firm size as a control variable. The regression model used are multiple linear regression analysis and moderated regression analysis. The sample was selected through purposive sampling method and 43 banks were selected as research sample. The result of this research showed that NPL and OEIR have a negative and significant impact on financial performance. Meanwhile, LDR has not significant effect on financial performance. Corporate governance was able to moderate the relationship between NPL and OEIR on financial performance, but unable to moderate the relationship between LDR on financial performance.

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Section: Resultssupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Risk Management and Banking Performance With Corporate Governance as Moderating Variable

Hikmawati

Sutrisno

2021

BSE

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“…A study by Mardiana (2018) showed that risk management, proxied by NPL, Enterprise Risk Management, and operating cost to operating income ratio (BOPO), simultaneously positively affects firm value. Risk management, proxied by NPL and enterprise risk management, is not significant to company value.…”

Section: Source: Processed Datamentioning

confidence: 99%

The Effect of Return on Assets, Firm Size and Risk Management on Firm Value with Good Corporate Governance as a Mediation Variable (Empirical Study of Sharia Commercial Banks 2015-2019)

Sari

Rokhmawati²,

Halim³

2021

IJEBA

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The implementation of Good Corporate Governance aims to create added value for all interested parties through improved management performance to increase corporate value and encourage the creation of an efficient, transparent, and following statutory regulations. The research objectives in conducting this research are to analyze and determine the Return on Assets, Company Size, Risk Management, and Good Corporate Governance, which affect the Company's Value through Good Corporate Governance. The results of this study found that return on assets has a significant positive effect on good corporate governance, firm size has a significant positive effect on good corporate governance, risk management has a significant positive effect on good corporate governance, good corporate governance has a significant positive effect on firm value, return on assets has a significant positive effect on firm value. significant positive effect on firm value, firm size has a significant positive effect on firm value, risk management has a significant positive effect on firm value.

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“…The findings of the study also established that liquidity risk management significantly influences financial performance of commercial banks. Mardiana and Dianata (2018) study investigated the effect of risk assessment on financial performance with good corporate governance as a moderation variable. he data used is obtained from the Financial Statements of Sharia Banking Companies Listed on Indonesia Stock Exchange in the period 2011 to 2016.…”

Section: Risk Assessment and Financial Performancementioning

confidence: 99%

Internal Control Practices and Financial Performance of County Governments in the Coastal Region of Kenya

Ahmed¹,

Ng’ang’a²

2019

IJCAB

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Internal control practices have been established to influence financial performance of County Government, though County Government have been facing a myriad of challenges in terms of financial performance. The drive of this study was to establish internal control practices that influence county governments to streamline their operations and perform efficiently and effectively for the benefit of the general interest. Therefore the general objective of the study was to determine the internal control practices and financial performance of county governments in the coastal region of Kenya. Specifically, the study endeavored to establish the effect of audit function, risk management, financial reporting and cash management on financial performance of county governments in the coastal region. The study was based on the following theories: The Agency theory, Attribution theory and procedural justice theory. The researcher adopted a descriptive research design. The target population of the study were 30 employees drawn from 5 departments in the Ministry of Finance, Budget and planning in the county governments of the Coastal region. The study targeted 4 Counties in the coastal region of Kenya, that is Mombasa, Kilifi, Kwale and Taita and the respondents were 40 finance managers obtained from Finance Planning Ministry of the listed County governments. A census of 40 respondents was carried out. Primary data was collected using questionnaires. Data was analysed using descriptive statistics and inferential statistics. The study found a positive and significant effect between risk assessment, monitoring, control environment, information and communication on financial performance. The study concluded that the risk identification and mitigation play the most significant role in influencing financial performance of the County governments. Hence, risk identification can essentially be said to be the key starting point of any risk management program as the Counties cannot manage what is unknown. Monitoring the financial performance of the County creates more certainty and confidence in making both short and long term decisions. This in turn leads to a healthier business and faster growth rate. The control environment provides the basis for carrying out internal control across the organization. Effective adoption of information and communication systems is of vital importance in making sure that the County governments improves their financial performance. The study recommends that the management of the Counties should put in place cost-effective measures for timely risk identification and effective risk mitigation so as to ensure that their financial performance is not impacted negatively. The County governments should have appropriate tools for monitoring their financial performance so as to effectively monitor their goals, the progress they make and all the key performance metrics throughout their financial operations. The County governments should demonstrate a commitment to integrity and ethical values. Specific standards of conduct should be understood throughout all levels of the County, and processes should be in place to evaluate performance and quickly address deviations from expectations. The County governments should communicate successfully with their investors to form stronger relationships with them. Information and communication should be between the County and financial stakeholders about the County’s economic events and their effects within and outside the financial statements.

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The effect of risk management on financial performance with good corporate governance as a moderation variable

Cited by 12 publications

References 1 publication

Risk Management and Banking Performance With Corporate Governance as Moderating Variable

Risk Management and Banking Performance With Corporate Governance as Moderating Variable

The Effect of Return on Assets, Firm Size and Risk Management on Firm Value with Good Corporate Governance as a Mediation Variable (Empirical Study of Sharia Commercial Banks 2015-2019)

Internal Control Practices and Financial Performance of County Governments in the Coastal Region of Kenya

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