Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]

This article deals with the growing pressures and demands for emerging risk reporting that may help interested users assess the importance of social risk management for sustainable development. The objectives of this study were to examine the influence of individual and institutional ownership and s...

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Main Authors: Janggu, Tamoi, Sawani, Yussri, Yusoff, Haslinda, Darus, Faizah, Mohamed Zain, Mustaffa
Format: Article
Language:English
Published: Accounting Research Institute (ARI) 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/30267/
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author Janggu, Tamoi
Sawani, Yussri
Yusoff, Haslinda
Darus, Faizah
Mohamed Zain, Mustaffa
author_facet Janggu, Tamoi
Sawani, Yussri
Yusoff, Haslinda
Darus, Faizah
Mohamed Zain, Mustaffa
author_sort Janggu, Tamoi
building UiTM Institutional Repository
collection Online Access
description This article deals with the growing pressures and demands for emerging risk reporting that may help interested users assess the importance of social risk management for sustainable development. The objectives of this study were to examine the influence of individual and institutional ownership and stakeholders on social risk disclosures and the joint effects on firms’ financial performances. A content analysis on the 2013 and 2014 annual reports of all plantation companies was carried out and analyzed using partial least square (SEM_PLS) software version 3.2. Based on the tests, we found significant relationships between institutional ownership and the number of stakeholders with social risk disclosures. However, there were no significant relationships between individual ownership and social risk disclosures. In addition, we found significant relationships between social risks and firms’ financial performances. These findings revealed that institutional shareholders and the number of stakeholders had a significant influence in deciding the disclosure of social risk information. Interestingly to note that social risk information was found to be statistically significant on firms’ financial performance as measured by the firms’ net profits. This paper, therefore, endorsed the growing demand to fully embed social risk management in companies’ operations by both institutional shareholders and stakeholders in general.
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spelling uitm-302672020-05-08T10:03:52Z https://ir.uitm.edu.my/id/eprint/30267/ Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.] mar Janggu, Tamoi Sawani, Yussri Yusoff, Haslinda Darus, Faizah Mohamed Zain, Mustaffa Risk management. Risk in industry. Operational risk This article deals with the growing pressures and demands for emerging risk reporting that may help interested users assess the importance of social risk management for sustainable development. The objectives of this study were to examine the influence of individual and institutional ownership and stakeholders on social risk disclosures and the joint effects on firms’ financial performances. A content analysis on the 2013 and 2014 annual reports of all plantation companies was carried out and analyzed using partial least square (SEM_PLS) software version 3.2. Based on the tests, we found significant relationships between institutional ownership and the number of stakeholders with social risk disclosures. However, there were no significant relationships between individual ownership and social risk disclosures. In addition, we found significant relationships between social risks and firms’ financial performances. These findings revealed that institutional shareholders and the number of stakeholders had a significant influence in deciding the disclosure of social risk information. Interestingly to note that social risk information was found to be statistically significant on firms’ financial performance as measured by the firms’ net profits. This paper, therefore, endorsed the growing demand to fully embed social risk management in companies’ operations by both institutional shareholders and stakeholders in general. Accounting Research Institute (ARI) 2017 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/30267/1/30267.pdf Janggu, Tamoi and Sawani, Yussri and Yusoff, Haslinda and Darus, Faizah and Mohamed Zain, Mustaffa (2017) Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]. (2017) Management & Accounting Review (MAR) <https://ir.uitm.edu.my/view/publication/Management_=26_Accounting_Review_=28MAR=29.html>, 16 (2). pp. 1-16. ISSN 2550-1895
spellingShingle Risk management. Risk in industry. Operational risk
Janggu, Tamoi
Sawani, Yussri
Yusoff, Haslinda
Darus, Faizah
Mohamed Zain, Mustaffa
Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]
title Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]
title_full Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]
title_fullStr Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]
title_full_unstemmed Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]
title_short Does social risk management matter? influencing factors and their link to firms' financial performances / Tamoi Janggu ... [et al.]
title_sort does social risk management matter? influencing factors and their link to firms' financial performances / tamoi janggu ... [et al.]
topic Risk management. Risk in industry. Operational risk
url https://ir.uitm.edu.my/id/eprint/30267/