The Effect of Good Corporate Governance Practices in Corporate Risk Management Disclosure: An Overview of European Banking Sector

Natalia Maria Greapca
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Natalia Maria Greapca: Bucharest University of Economic Studies, Bucharest, Romania

PROCEEDINGS OF THE INTERNATIONAL CONFERENCE ON ECONOMICS AND SOCIAL SCIENCES, 2023, vol. 6, issue 1, 123-132

Abstract: Evidence from contemporary research results proves that good corporate governance practices are a fundamental indicator in determining a company’s performance. Corporate risk management disclosure assures stability in a business strategy design and decision-making process. The aim of this study is to obtain significant empirical evidence on the impact of good corporate governance (independence and existence of the committees) and company’s performance (return on assets and leverage) and characteristics (company size) towards corporate risk management disclosure. The paper investigates data from the European banking sector evidence. As data source for this study, the information is extracted by Thompson Reuters database and by content analysis of banks published integrated reports during the years of observation. The research questions are addressed by employing regression analysis as a model of research, conducted in IBM SPSS Statistics. The partial results show a possible association between the complexity of risk disclosure, good corporate governance practices and company’s performance. Prior studies results demonstrate significant effects of financial performance indicators on corporate risk management disclosure. Also, the company size seems to be positively and significantly related to risk disclosure. Moreover, the effects of corporate governance from previous research are demonstrated; accordingly, similar results are expected from the current study as well. Thus far, the research which assimilates risk management and corporate governance is still limited and in the development phase. This paper may provide consistent results in the research area and supports future approaches.

Keywords: risk management disclosure; good corporate governance practices; financial performance; econometric analysis. (search for similar items in EconPapers)
JEL-codes: M14 M16 M21 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:rom:conase:v:6:y:2024:i:1:p:123-132

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