Corporate strategy and firm performance in finance industry: the moderating role risk management committee
Although there are a lot of studies on corporate strategy and performance, very little research has been carried out on particular industry in a developing country such as Malaysia. Moreover, the studies examined direct impact of strategy on firm performance. Using a sample of thirty seven listed f...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Management Journals
2013
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| Online Access: | http://psasir.upm.edu.my/id/eprint/28396/ http://psasir.upm.edu.my/id/eprint/28396/1/Corporate%20strategy%20and%20firm%20performance%20in%20finance%20industry.pdf |
| _version_ | 1848846105471614976 |
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| author | Kallamu, Basiru Salisu Mohd Saat, Nur Ashikin Senik, Rosmila |
| author_facet | Kallamu, Basiru Salisu Mohd Saat, Nur Ashikin Senik, Rosmila |
| author_sort | Kallamu, Basiru Salisu |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | Although there are a lot of studies on corporate strategy and performance, very little research has been carried
out on particular industry in a developing country such as Malaysia. Moreover, the studies examined direct impact of strategy on firm performance. Using a sample of thirty seven listed finance firms in Malaysia, we test the moderating effect of separate risk management committee (RMC) on the relationship between corporate strategy and firm performance. Based on agency theory, the study hypothesized that separate RMC moderates the relationship
between corporate strategy and firm performance. The result indicates that the presence of a RMC significantly moderate the relationship between non-traditional strategy and firm performance in a positive direction. Our result provide empirical support for agency theory which suggests that presence of subcommittee of the board of directors helps to facilitate the effective monitoring of management thereby
reducing the risk taking activities of managers which will enhance firm performance. |
| first_indexed | 2025-11-15T08:57:25Z |
| format | Article |
| id | upm-28396 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:57:25Z |
| publishDate | 2013 |
| publisher | Management Journals |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-283962015-09-18T02:30:07Z http://psasir.upm.edu.my/id/eprint/28396/ Corporate strategy and firm performance in finance industry: the moderating role risk management committee Kallamu, Basiru Salisu Mohd Saat, Nur Ashikin Senik, Rosmila Although there are a lot of studies on corporate strategy and performance, very little research has been carried out on particular industry in a developing country such as Malaysia. Moreover, the studies examined direct impact of strategy on firm performance. Using a sample of thirty seven listed finance firms in Malaysia, we test the moderating effect of separate risk management committee (RMC) on the relationship between corporate strategy and firm performance. Based on agency theory, the study hypothesized that separate RMC moderates the relationship between corporate strategy and firm performance. The result indicates that the presence of a RMC significantly moderate the relationship between non-traditional strategy and firm performance in a positive direction. Our result provide empirical support for agency theory which suggests that presence of subcommittee of the board of directors helps to facilitate the effective monitoring of management thereby reducing the risk taking activities of managers which will enhance firm performance. Management Journals 2013 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/28396/1/Corporate%20strategy%20and%20firm%20performance%20in%20finance%20industry.pdf Kallamu, Basiru Salisu and Mohd Saat, Nur Ashikin and Senik, Rosmila (2013) Corporate strategy and firm performance in finance industry: the moderating role risk management committee. International Journal of Economics and Management Sciences, 2 (11). pp. 143-153. ISSN 2162-6359 http://www.managementjournals.org/journals/index.php/ijems/pages/view/Vol.2%20No.11%202013 |
| spellingShingle | Kallamu, Basiru Salisu Mohd Saat, Nur Ashikin Senik, Rosmila Corporate strategy and firm performance in finance industry: the moderating role risk management committee |
| title | Corporate strategy and firm performance in finance industry: the moderating role risk management committee |
| title_full | Corporate strategy and firm performance in finance industry: the moderating role risk management committee |
| title_fullStr | Corporate strategy and firm performance in finance industry: the moderating role risk management committee |
| title_full_unstemmed | Corporate strategy and firm performance in finance industry: the moderating role risk management committee |
| title_short | Corporate strategy and firm performance in finance industry: the moderating role risk management committee |
| title_sort | corporate strategy and firm performance in finance industry: the moderating role risk management committee |
| url | http://psasir.upm.edu.my/id/eprint/28396/ http://psasir.upm.edu.my/id/eprint/28396/ http://psasir.upm.edu.my/id/eprint/28396/1/Corporate%20strategy%20and%20firm%20performance%20in%20finance%20industry.pdf |