Risk Committee, Firm Life Cycle, and Market Risk Disclosures
Manuscript Type – Empirical. Research Question/Issue - This study investigates whether the existence of a separate risk committee and risk committee characteristics are associated with market risk disclosures. It also tests whether the role of a risk committee in affecting market risk disclosures va...
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| Format: | Journal Article |
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Blackwell Publishing
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/26542 |
| _version_ | 1848752016402153472 |
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| author | Hadi-Al, A. Hasan, Mostafa Habib, A. |
| author_facet | Hadi-Al, A. Hasan, Mostafa Habib, A. |
| author_sort | Hadi-Al, A. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Manuscript Type – Empirical. Research Question/Issue - This study investigates whether the existence of a separate risk committee and risk committee characteristics are associated with market risk disclosures. It also tests whether the role of a risk committee in affecting market risk disclosures varies for different firm life cycle stages. Research Findings/Insights - Using 677 firm-year observations of financial firms from Gulf Cooperation Council (GCC) countries during the years 2007–2011, we find that firms with a separate risk committee are associated with greater market risk disclosures, an effect that is more pronounced for mature-stage firms. Furthermore, findings suggest that risk committee qualifications and size have a significant positive impact on market risk disclosures. Theoretical/Academic Implications - This study complements the corporate governance literature by incorporating agency theory, legitimacy theory, stakeholder theory, and the resource-based theory to provide more robust evidence of the impact of a separate risk committee and the firm life cycle on market risk disclosures. Our results support the monitoring effect of a separate risk committee and suggest that a separate risk committee can improve “firm-level corporate governance” in the GCC countries characterized by a poor informational environment. Practitioner/ Policy Implications - Findings from this study provide evidence that the existence, qualifications, and size of risk committees may be used as a channel to improve the disclosure level, suggesting a policy prescription for regulators and policymakers. Investors may also find these results useful in forming their own expectations about firm-level risk disclosures. |
| first_indexed | 2025-11-14T08:01:55Z |
| format | Journal Article |
| id | curtin-20.500.11937-26542 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:01:55Z |
| publishDate | 2015 |
| publisher | Blackwell Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-265422017-09-13T15:27:37Z Risk Committee, Firm Life Cycle, and Market Risk Disclosures Hadi-Al, A. Hasan, Mostafa Habib, A. Market Risk Disclosure Firm Life Cycle Corporate Governance Risk Committee Manuscript Type – Empirical. Research Question/Issue - This study investigates whether the existence of a separate risk committee and risk committee characteristics are associated with market risk disclosures. It also tests whether the role of a risk committee in affecting market risk disclosures varies for different firm life cycle stages. Research Findings/Insights - Using 677 firm-year observations of financial firms from Gulf Cooperation Council (GCC) countries during the years 2007–2011, we find that firms with a separate risk committee are associated with greater market risk disclosures, an effect that is more pronounced for mature-stage firms. Furthermore, findings suggest that risk committee qualifications and size have a significant positive impact on market risk disclosures. Theoretical/Academic Implications - This study complements the corporate governance literature by incorporating agency theory, legitimacy theory, stakeholder theory, and the resource-based theory to provide more robust evidence of the impact of a separate risk committee and the firm life cycle on market risk disclosures. Our results support the monitoring effect of a separate risk committee and suggest that a separate risk committee can improve “firm-level corporate governance” in the GCC countries characterized by a poor informational environment. Practitioner/ Policy Implications - Findings from this study provide evidence that the existence, qualifications, and size of risk committees may be used as a channel to improve the disclosure level, suggesting a policy prescription for regulators and policymakers. Investors may also find these results useful in forming their own expectations about firm-level risk disclosures. 2015 Journal Article http://hdl.handle.net/20.500.11937/26542 10.1111/corg.12115 Blackwell Publishing restricted |
| spellingShingle | Market Risk Disclosure Firm Life Cycle Corporate Governance Risk Committee Hadi-Al, A. Hasan, Mostafa Habib, A. Risk Committee, Firm Life Cycle, and Market Risk Disclosures |
| title | Risk Committee, Firm Life Cycle, and Market Risk Disclosures |
| title_full | Risk Committee, Firm Life Cycle, and Market Risk Disclosures |
| title_fullStr | Risk Committee, Firm Life Cycle, and Market Risk Disclosures |
| title_full_unstemmed | Risk Committee, Firm Life Cycle, and Market Risk Disclosures |
| title_short | Risk Committee, Firm Life Cycle, and Market Risk Disclosures |
| title_sort | risk committee, firm life cycle, and market risk disclosures |
| topic | Market Risk Disclosure Firm Life Cycle Corporate Governance Risk Committee |
| url | http://hdl.handle.net/20.500.11937/26542 |