 Is assurance on risk management systems relevant for bankers’ decisions?Reiner Quick and Kevin Gauch Advances in accounting, 2021, vol. 55, issue C Abstract: Risk management systems (RMS) are an essential element of corporate governance and support companies in managing the omnipresent internal and external risks. Assurance on such systems can support such efforts and add further benefits. This study investigates the impact of RMS assurance on the perceptions and decisions of German bankers, and analyzes whether the assurance provider and the assurance level are relevant to them. We conducted an experiment with 145 bankers, using ANOVA to analyze their reliance on the hypothetical company’s RMS and their decisions regarding lending, recommending investments, and investing in stocks. A 2×2+1 between-subjects design was chosen, and we manipulated the assurance provider (audit firm vs. third-party provider) and the assurance level (limited vs. reasonable), and added a control condition with no assurance. Our results indicate that RMS assurance positively influences banker perceptions and decisions, whereas the assurance provider and assurance level has no statistically significant impact on them. Keywords: Risk management; Risk management system; Assurance level; Assurance provider; Assurance services; Banking industry (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:advacc:v:55:y:2021:i:c:s0882611021000523 DOI: 10.1016/j.adiac.2021.100564 Access Statistics for this article Advances in accounting is currently edited by Dennis Caplan More articles in Advances in accounting from Elsevier |
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