Presence Of Audit Committee Research Articles

Corporate reputation in Brazil: do board characteristics matter?

Purpose This paper aims to analyse the influence of board characteristics on corporate reputation. Design/methodology/approach In total, 128 Brazilian publicly traded companies from Refinitiv Eikon were analysed between 2016 and 2020. The dependent variable was corporate reputation, whereas the independent variables were board size, gender diversity, board independence and audit committee presence. Multivariate analysis was used. Findings The results presented empirical evidence that board members can impact corporate reputation. Findings showed that board size, gender diversity and independence positively influence Brazilian companies’ corporate reputation. Conversely, an audit committee had no significant impact on corporate reputation. Research limitations/implications The paper presents a contribution to the significance of board members in shaping a company's corporate reputation, using the signalling theory and the resource-based view (RBV) theory. Practical implications Regarding practical implications, this work provides subsidies for managers to value board characteristics because they directly reflect on corporate reputation and competitive advantage, leading to more sustainable performance. Social implications The research findings highlight that a diverse board encourages the organisation to improve its workforce, human rights, relations with the community and responsibility for manufactured products. Originality/value The relationship between board characteristics and corporate cooperation is poorly established in the literature. Furthermore, the results prove the RBV theory in an emerging context. Similarly, the signalling theory proved helpful in improving Brazilian firms’ corporate reputation.

Exploring the Influence of Corporate Social Responsibility Disclosure on Corporate Governance and Firm Value

This study investigates the impact of institutional ownership, managerial ownership, and audit committees on firm value, with corporate social responsibility (CSR) disclosure serving as a moderating variable. Focusing on LQ-45 firms listed on the Indonesia Stock Exchange (IDX) from 2017 to 2022, the research utilizes a sample of 35 firms with 112 firm-year observations. Data were analyzed using ordinary least squares (OLS) regression and Moderated Regression Analysis (MRA). The findings reveal that institutional ownership and audit committee presence significantly affect firm value. CSR disclosure strengthens the relationship between institutional ownership and firm value, suggesting that firms with higher CSR engagement see a greater impact of institutional ownership on their value. Conversely, CSR disclosure weakens the effect of managerial ownership on firm value, indicating that increased CSR activities might diminish the influence of managerial ownership. Additionally, CSR does not enhance the relationship between audit committee presence and firm value. This research highlights the nuanced role of CSR in moderating governance mechanisms and their impact on firm value, offering insights for policymakers and investors in emerging markets.

Qualitative analysis of the effectiveness of audit committees and internal audit functions in the public sector: the case of public establishments in Morocco

This article examines corporate governance and the performance of the audit committee, as well as the functions of internal audit in the public sector of an emerging economy such as Morocco. Both of these functions are crucial for corporate governance, ensuring optimal service delivery by local authorities, particularly public institutions. The study, based on stakeholder theory, qualitatively analyzes corporate governance and the effectiveness of audit committees and internal audit units in the Moroccan public sector. The results suggest good corporate governance with the presence of audit committees and internal audit functions in the public sector. However, the inefficiency of audit committees and internal audit units is highlighted, attributed to the lack of guidance, non-implementation of recommendations, and insufficient resources in the Moroccan public sector. To enhance performance, it is recommended that leaders take into account the findings of audit committees and internal audit units, endorsing and incorporating their conclusions into action plans implemented by management. Audit committees should strengthen their oversight of internal audit functions to ensure their effectiveness. The presence of effective audit committees and internal audit units in the public sector reflects competent and efficient utilization of resources for the benefit of all stakeholders.

Influence of Audit Committee Competence on Financial Performance of Deposit-Taking SACCOs in Nairobi County, Kenya

There is a continued trend of fraud and poor performance in most SACCOs in Kenya. Despite the presence of audit committees in SACCOs, members'/shareholders' savings have been left at risk of fraud and mismanagement. None of the studies reviewed has focused on the manner in which audit committee competence affects financial performance in DT-SACCOs in developing countries such as Kenya. This study aims to establish the influence of the competence of the audit committee on the financial performance of deposit-taking SACCOs in Nairobi County, Kenya. This study was based on the Lending Credibility Theory. This study used a correlational research design. The study targeted all the 47 deposit-taking SACCOs in Nairobi County, Kenya. Two audit committee members, the CEO, Internal Auditor, Finance Officer and two members in each deposit-taking SACCO formed the unit of observation. Therefore, the target population was 329 respondents. The study adopted census sampling techniques. The researcher used questionnaires for data collection. The study piloted the questionnaire on 25 SACCO members from 5 SACCOs in Kiambu County, representing 10% of the 47 deposit-taking SACCOs in Nairobi County. Qualitative data were analyzed using content analysis and presented in prose form. Quantitative data collected were analyzed using SPSS version 26. To determine the direction and how strongly the variables are related, the study computed Pearson correlation. The influence of independent variables (audit committee competence) on the dependent variable (financial performance of DT-SACCOs in Nairobi County, Kenya) was determined by computing multiple regression analysis. The findings were presented in tables and figures. The study concludes that audit committee competence has a positive and significant effect on the financial performance of deposit-taking SACCOs in Nairobi County, Kenya. The study recommends that the management of Deposit-taking SACCOs in Nairobi County, Kenya, should provide training and capacity-building programs for audit committee members to enhance their skills and knowledge. This should focus on areas such as financial literacy, risk management, and governance practices.

The determinants of green finance and effect on the banking sector

Abstract This study examines the prerequisites and challenges faced by local and foreign commercial banks in Türkiye in supporting green business initiatives. This study uses backward logistic regression analysis to identify variables affecting green financing practices using annual data from Turkish deposit banks from 2012 to 2021. This study addresses the growing interest in understanding the role of commercial banks in promoting green finance and contributes to the existing literature by revealing the current efforts of Turkish commercial banks in this area. The main findings show that factors influencing green financing practices are derivative financial assets, loans, tangible assets, equity capital, company size, female representation on boards, presence of audit committees and company experience. The study highlights the relationship between these factors and green financing methods adopted by depository banks. It is worth noting that the assets of these banks were built within the framework of green financing and practices such as green buildings, green loans and green bonds were introduced. In addition, the size and experience of custodian banks help influence their green financing practices. The findings provide a framework for policy makers, practitioners and academics who wish to gain a deeper understanding of the dynamics of Turkish financial institutions and green finance.

Peran Spesialisasi Auditor dalam Memoderasi Financial Distress dan Komite Audit Terhadap Audit Report Lag

Objectives. This study aims to investigate the factors that influence the occurrence of audit report lag, considering financial distress and audit committees as the cause, and auditor specialization as a moderating variable.Design/method/approach. This study's population comprises mining companies listed on the Indonesia Stock Exchange (IDX) between 2017 and 2021. A purposive sampling method was employed to select a sample of 229 listed companies. Data analysis involved the use of the multiple linear regression method and the moderated regression analysis.Result/findings. Financial distress and the presence of audit committee are likely to influence the audit report lag. However, it was observed that auditor specialization does not moderate the impact of financial distress and the audit committee on the audit report lag.Theoretical contribution. This study investigates the moderating role of auditor specialization on the impact of financial distress and audit committees on audit report lag. Notably, this simultaneous examination of these variables has not been conducted before.Practical contribution. The findings indicate that both financial distress and the presence of audit committee play crucial roles in ensuring punctual submission of audited financial reports. This punctual reporting helps companies manage their financial condition effectively and enhances the audit committee's effectiveness in improving the punctuality of financial reporting.Limitations. The auditor specialization index in this study exclusively focuses on companies within the mining sector.

Impact of corporate governance and ownership concentrations on timelines of financial reporting in Pakistan

The objective of this paper is to explore the relationship among corporate governance, timelines of financial reporting and ownership concentration taken as a moderating effect among the listed firms on Pakistan Stock Exchange. In this study, we developed hypothesis about the relationship between corporate governance and timelines of financial reporting by using the data of 100 listed firms during the period of 2013 to 2017. By applying ordinary least squares, we find out that auditor brand name decreases the audit report lag and increases the quality of the audit. Audit opinion also has an impact on the audit quality if there is an unqualified report, and then the quality of the audit increases with decrease in lags. A large number of board meeting decreases the lags and increases the audit quality. Independent board decreases the lags and increases the audit quality. Family ownership, the most important variable, decreases the management report lag and increases the audit quality. If ownership concentration is taken as a moderator, then board diligence has a negative relationship with the timelines that show the large number of board meeting decreases the lags and increases the audit quality. The board size is positively related with timelines, which means that larger board increases the lags and the audit quality decreases. The audit committee presence decreases the management report lag and without moderating, the audit committee has no impact on the timelines. However, some hypotheses are fully supported, and some partially support the relationship. Our finding is that corporate governance has an impact on timelines of financial reporting and ownership concentration has moderating effect that enhances the relationship.

Multiple Directorships and Audit Committee Effectiveness: Evidence from Effort Allocation

Recent post-SOX studies have consistently found that the presence of audit committee (AC) directors with multiple directorships is associated with lower financial reporting quality. An implicit assumption of these studies is that AC directors distribute their effort equally across all their directorships. Using a firm size-based proxy and firm risk-based (i.e. probabilities of litigation and of misstatements) proxies to measure relative directorship importance, we investigate (1) whether and how AC directors who serve on multiple AC directorships allocate their effort to different directorships unequally, and (2) whether the unequal prioritization of effort across multiple AC directorships relates to AC monitoring effectiveness. We find a positive (no) relation between the risk-based (firm size-based) directorship importance measures and AC effectiveness, suggesting that AC directors serving on multiple boards unequally allocate their effort to different directorships based on incentives related to firm risk and not to firm size. Our results have relevance for regulators, boards of directors, investors, and other stakeholders.

Determinants of the extent and quality of corporate social responsibility disclosure in the industrial and services sectors: the case of Jordan

PurposeThis study aims to investigate the determinants of the extent and quality of corporate social responsibility disclosure (CSRD) in Jordan. The study examines a number of factors that influence the extent and quality of CSR disclosure, such as corporate characteristics, corporate governance and ownership structure.Design/methodology/approachA quantitative approach and a content analysis technique is used to measure the extent and quality of CSRD from annual reports. The sample is drawn from the annual reports of 118 Jordanian companies between 2010 and 2015. A CSRD index is constructed, which includes the disclosures of the following categories: environmental, human resources, product and consumers, and community involvement. This is the first study that presents a new measurement for CSR disclosure quality by using images and charts in a seven-point scale measurement.FindingsThe result reveals that the extent of CSRD is higher than quality in Jordan. Regarding the determinants of CSR disclosures, the following factors were found to have a significant relationship with both the extent and quality of CSRD: board size, non-executive directors, age of firm, foreign members on the board, number of boards meetings, the presence of audit committees, big 4, government ownership, size of firm and industry type. Non-executive directors was found to have a significant correlation with the extent of CSRD.Research limitations/implicationsThe current study has some limitations; first, the study findings are limited to the Jordanian environment. Second, the study adopted a purely quantitative method, and future research could include interviews and questionnaires to gather data from financial managers and chief executive officers (CEOs). Third, the potential influences on the level and quality of CSR are not limited to the variables tested in this study. Future research can be done on new determinants, such as CEO interlocking and profitability. Finally, the sample included companies from two main sectors – the services and industrial sectors; thus, this limited the results to these two main sectors.Practical implicationsPractitioners, as firms, should develop new strategies and ensure that CSR is included in their reports. Thus, companies can achieve legitimacy for their products and activities. Policymakers must consider introducing new laws that mandate CSRDs since it has many advantages for companies and society. In addition, this research suggests amending the law to require companies to have 33% of their directors be non-executives since this will remove the negative effect on CSR disclosure. Investors must pay attention to the social activities of the companies they invest in, as CSR could have a positive effect on their market value.Social implicationsThe study has indicated that Jordanian companies became increasingly more involved in CSR activities, as this growth in CSRD is linked with global increases in CSR. Moreover, the study has revealed that the highest category of CSR disclosures is related to products or services and employee information. On the other hand, the lowest category of CSR disclosures is related to community and other disclosures (extent) and environmental disclosures (quality). Furthermore, the results show that the services sector was found to have more disclosures regarding employees and community, whereas the industrial sector was more concerned about environmental and product information.Originality/valueTo the best of the authors’ knowledge, this is the first study that presents a new measurement for CSR disclosure quality by using images and charts in a seven-point scale measurement. This new seven-point scale will be adopted to distinguish between poor and excellent disclosures. In addition, to the best of the authors’ knowledge, this is the first study in Jordan which examines the determinants of the extent and the quality of CSR for three categories, namely, corporate characteristics, corporate governance and ownership structure.

Impact of corporate board and external audit attributes on earnings quality: Experience from Nigeria quoted foods and beverages firms

The recent audit failures has pointed to weaknesses in financial report and give occasion of doubt to users about the reliability of earnings declared by firms. This study examines the effects of corporate board and external audit attributes on earnings quality of listed foods and beverages firms in Nigeria. Secondary data were employed through audited annual reports and accounts of eight (8) selected foods and beverages firms listed on the Nigerian Stock Exchange using judgmental sampling technique. Data collected were analyse using descriptive statistics like table, percentage and inferential statistics such as panel regression analysis. All Analysis were tested at 5% level of significance. The results revealed that audit firm size (β=14485.32, P=0.000) which is external audit attribute and board size (β=-2741.887, P=0.000), audit committee presence (β= -8225.11, P=0.044) and company size (β= 5454.20, P=0.000) were the significant determinants of external audit and corporate board attributes of listed foods and beverages firms in Nigeria. Also, the result of panel regression revealed that audit independence (β= -6.57e-06, P=0.035) and audit firm size (β=0.1141479, P= 0.018) were the external audit attributes that had significant effect on discretionary accruals. The study therefore concluded that corporate board attributes (audit committee) and external audit attributes (auditor independence, audit firm size) had significant effect on earnings quality as measured by earnings management of selected foods and beverages firms in Nigeria. The study recommends that in order to enhance auditor’s independence, uniform audit fee should be formulated, and also, disclosure should be made on other corporate board attributes like board members’ year of experience and gender and for effective monitoring system.

The Relationship between Corporate Governance Mechanism and the Firm Value: The Case of Islamic Banks in Malaysia and Indonesia

Our study empirically examines the relationship between corporate governance mechanism and their interactions on the firm value. We concentrated on the banking industry in Indonesia and Malaysia given that majority of the literature are primarily focused on the non-financial industry due to stringent regulation on disclosure in the financial banking counterparts. We measure firm’s value using Tobin’s q, while corporate governance mechanisms comprised of independent directors, the presence of audit committee, the institutional ownership as well as the percentage of female directors on the board. Using 48 observations during the year 2016-2018, our result exhibit that there is a significant positive association between audit committee independence and firm value. Moreover, we also reported a negative link between board independent and the presence of female directors on the firm value. In respect to our interaction effects, we found that there is a complementary relationship between (i) audit committee independent and board independent and (ii) female directors and audit committee independent and firm value. Moreover, our regression also reported a significant substitutive relationship between (i) female directors and institutional ownership (ii) female directors and board independent as well as (iii) audit committee independent and institutional ownership and firm value. In contrary to the findings from the western counterpart, our result shows that the presence of female directors reduce firm value, thus suggesting that the role of female directors have been impaired due to the cultural aspect of the society.

Tax Planning and Corporate Governance on Firm Value: Board Diversity as Moderating

This research is intended to analyse the influence of tax planning, CEO ownership, female member, board size, board independence, audit committee, and board meeting on firm value and the influence of board education background and board age on the relationship between tax planning and firm value in non-financial companies listed in Indonesia Stock Exchange. The population of this research are all non-financial companies consistently listed in Indonesia Stock Exchange from 2016 to 2018. This research uses 53 samples of non-financial companies selected through purposive sampling method resulting in 159 data to be analysed using moderating regressions analysis. The result of this research showed that audit committee has influence positive and significant on firm value. The board age has influence positive and significant on the relationship between tax planning and firm value. While tax planning, CEO ownership, female member, board size, board independence, board meeting have no significant influence on firm value. The influence of board education background on the relationship between tax planning and firm value has no significant. The increase in the size of audit committee will increase the value of firm, it is because the presence of audit committee that consists of independent members will reduce financial manipulation or fraud in the firms. Board age is strengthen the relationship between tax planning and firm value. Because the older the member of board directors, the more they obey their obligation to pay taxes, so the tax planning activities will be more effective and it will increase the value of the firm. Keywords: Firm Value, Tax Planning, Board Diversity, Corporate Governance

Voluntary disclosures on control system over financial reporting and corporate governance mechanisms: Evidence from Poland

The paper presents the results of research on the mechanisms of corporate governance functioning on the Polish capital market. The purpose of this article is to identify the impact of selected internal mechanisms of corporate governance on the scope of disclosures on the control system over financial reporting. Disclosures were presented by public companies operating on the capital market with an insider model of corporate governance. The research covered 301 companies listed on the Warsaw Stock Exchange and their voluntary disclosures published in 2013. The results indicate that the scope of disclosures on the control system over financial reporting is positively correlated with the presence of audit committee and the share of independent supervisory board members in their total number. The obtained research results confirm the belief presented in the literature that in an insider model of corporate governance internal mechanisms affect the scope of voluntary corporate disclosures. In addition, research results indicate that the scope of voluntary disclosures depends on the size of the company.

Pengaruh Komite Audit Terhadap Kinerja Perusahaan Melalui Manajemen Laba sebagai Variabel Intervening

This study aimed to assess whether the presence of audit committees on Go Publiccompanies have a significant influence on company performance. And whether earningsmanagement as an intervening variable in effect. The research data was taken from theannual report in 2010, with a population of firms that go on the list of Islamic securities(DES) to sample as many as 31 companies and analyzed by regression analysis. Fromthe test results empirically prove that the audit committee did not significantly influencethe performance of the company, it is seen from the significant variables of the auditcommittee (KA) of 0.262 is greater than 0.05. Furthermore earnings management (DTACC)an intervening variable in part to the influence of the audit committee (KA) on theperformance of the company (Tobins-Q).

An Empirical Test of the Agency Theory in Corporate Governance of SACCOs in Uganda

In organizations, the principal (owners) hire agents (management) for the purpose of producing goods and services. Each party in a firm has a unique goal. For example, as the principal seeks to maximize dividends, agents cherish utility maximization from their status and claims for non-pecuniary benefits. While executing their roles and obligations, management may consider fulfilling their interests at the expense of the owners, and vice versa. Management misconduct results in agency problems. This study tests the relevance of the agency theory and examines whether existing corporate governance mechanisms address agency problems in Savings and Credit Cooperatives (SACCOs) in Uganda. Inquiry follows a mixed research (both quantitative and qualitative) design by use of self-administered questionnaires and personal interviews. The key informants are selected through a stratified sampling procedure. Questions are asked about the agency problems emanating from: the utility of owners and management, financial challenges, and information asymmetry; and governance mechanisms. Respondents’ views and perceptions are analyzed using a 5-point Likert scale. From a sample of 252 SACCOs, each with a minimum of ten years of experience, findings show that majority (40%) operate in Western Uganda, have a minimum of 1,000 shareholders, 65.1% of the Board has at least a first degree, and a dominance male (91.7%) in management. The average welfare index for the owners (4=bad welfare) is lower than that of the management (2.7=good welfare) signaling presence of conflicts. The board composition shows less CEO duality, bigger size, more independence, higher remuneration, and presence of audit committees. Examining whether this structure impacts on the agency conflicts, the marginal effects from the probit regression indicate that the board size, remuneration, and independence have a high likelihood of reducing the principal-agent problems while the audit committee yields a reverse sign. Therefore, there is need for the adoption of good corporate governance practices in SACCOs for survival.

Analisa Faktor Yang Berpengaruh Terhadap Nilai Perusahaan Dengan Kualitas Laba Sebagai Variabel Intervening Pada Perusahaan Manufaktur

The purpose of this studi is to analyze of Factors that affect the Company Value with the Quality of profit as intervening variable on manufacture company on Manufacturing Companies Listed In Indonesia Stock Exchange. The results obtained as follows: Direct Influence Managerial ownership has a negative and significant effect on Corporate Value, Institutional ownership has a positive and significant effect on Corporate Value, Audit Committee existence has negative and insignificant effect on firm value. Indirect Effect is managerial ownership has a negative and insignificant effect on profit quality as well as earnings quality has positive and significant effect to company value, institutional ownership has negative and insignificant effect on profit quality and earnings quality have positive and significant influence to company value while existence of audit committee influences positive and significant to profitability as well as earnings quality have positive and significant impact to company value. Direct influence Managerial ownership of Corporate Value is greater than the indirect effect of managerial ownership on Corporate Value by mediating the quality of earnings so as to increase the Company's value of the selected direct path. It can be said that earnings quality can not function as intervening variable between managerial ownership and company value. The direct effect of Institutional Ownership on Corporate Value is greater than the indirect effect of Institutional Ownership on Corporate Values with the mediation of earnings quality, so as to increase the Company's value of selected direct paths. It can be said that earnings quality can not function as intervening variable between managerial ownership and company value. The Influence of Audit Committee's Existence on Corporate Value is less than indirect influence The existence of the Audit Committee on Corporate Values with the mediation of earnings quality so as to increase the Company's value is chosen indirect path. It can be said that earnings quality can serve as intervening variable between Audit Committee's existence with company value. Keywords: managerial ownership, institutional ownership, presence of audit committee, corporate value, earnings quality

Voluntary Corporate Governance Disclosure Innovative Evidence: The Case of Jordan

This paper aimed to assess the corporate governance voluntary disclosure level and the impact of a set of corporate governances (CG) attributes on the level to which corporate governance voluntary disclosure is conducted in Jordan. Another objective was to determine if Jordanian industrial listed corporations adhere to and disclose good CG practices voluntarily, and if they do, to determine the factors influencing such disclosure. This study employed 61 industrial listed firms for the years 2010-2014. The research developed a general voluntary CG disclosure index composing of 15 Jordanian Corporate Governance Codes and gauged the relationship via pooled OLS and regression method. The results indicated that the proposed Jordanian Corporate Governance Index (JCGI) enhanced voluntary corporate governance disclosure among Jordanian listed firms over the examined years. They also showed varying levels of CG disclosures in different scenarios; 1) it is lower in firms with higher managerial ownership and 2) higher relative to the independent directors' proportion on the board, audit firm size, and audit committee presence with institutional ownership. Evidence on the compliance level towards the CG code in Amman Stock Exchange is unique and the study is distinct as it provides a pioneering evidence of the achieved compliance level.

The Impact of Audit Committee and Its Characteristics on the Firms’ Information Environment

The present study aims at investigating the impact of the presence of audit committee and its characteristics on the corporate information environment. These characteristics include independence, financial expertise, size, and the gender of the audit committee. Although several methods have been discussed for measuring information environment in the accounting and finance literature, this research is pioneer in developing a comprehensive index using mathematical method to measure information environment. Given this fact, the impact of the presence of audit committee on information environment during 2008-2015, which was the period before and after the approval of the internal control guidelines, was investigated. The results of analyzing the data collected from 41 firms using panel data technique point to a positive relationship between the presence of audit committee and information environment. In addition, the impact of the audit committee characteristics on information environment during 2012-2015 and after the approval of guidelines was examined. The results of analyzing 121 firms using panel data technique indicate that independence and financial expertise are positively associated with information environment. However, no significant relationship was found between other characteristics and information environment.

The Effect of the Presence ofAudit Committees on Earnings Management in Morocco

Our paper will try emphasizing the effect of the presence of audit committees on earnings management within the Moroccan context, and most specifically in the companies listed in the Casablanca stock exchange. We have adopted previous research embedded in the Dechow, Sloan and Sweeny (1995) model of earnings management that requires a maximum of 6 companies by sector, a condition that limited our sample to 27 companies dispatched only on 4 industry sectors. Given that the companies manipulate the accruals to show the increasing results or to maintain the stock price, the role of the audit committee is to ensure that this manipulation is to be reduced in order to provide investors with accurate information. In the Moroccan context, this reduction started appearing in 2014. The years 2011, 2012 and 2013 were marked by a preparation of implementation tools of these committees mainly the integration of independent administrators within the administrative boards. However, due to lack of data, this study might be limited given the fact that the year 2016, which represented a year where the listed companies should have created an audit committee, was not covered by our study.

An Assessment of Risk and Risk Management Information Disclosure of Companies Listed in Nasdaq OMX Baltic and Euronext Brussels

The main goal of this paper is to discuss theoretically and to evaluate empirically the differences of risk and risk management information disclosure (RRMID) among companies listed in Nasdaq OMX Baltic and Euronext Brussels and to determine factors influencing such differences. The authors use analysis and systemization of scientific literature, induction, content analysis and coding procedure for risk and risk management information disclosure assessment, as well as correlation and regression analyses. The results suggest that companies listed in Euronext Brussels disclose more risk and risk management (RRM) information; RRM related disclosures are more qualitative, focused on past or present events and have a neutral meaning in both markets. Companies also disclose more information about risks themselves than about risk management. Finally, only companies' size and presence of audit committee are significant factors influencing RRMID.