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Risk management committees and firm performance
journal contributionposted on 2023-05-20, 18:53 authored by Jing JiaJing Jia, Bradbury, ME
Risk management committees (RMCs) are recognised as a key corporate governance mechanism for controlling corporate risk. We examine the performance of RMCs in Australia over the period 2007–2014. We identify three performance measures related to the function of the RMC: the probability of financial distress, growth options (market to book) and return on assets. We find that firms with an RMC perform better than other firms. We also find that firms with a separately constituted RMC perform better, relative to firms where the risk management activities are absorbed into an existing committee.
Publication titleAustralian Journal of Management
PublisherSage Publications Ltd.
Place of publicationUnited Kingdom
Rights statementCopyright 2020 The Authors