Corporate Governance and Financial Characteristics Influence on Enterprise Risk Management Disclosure in Malaysia

Sharifah Faatihah Syed Mohd Fuzi (), Mohamat Sabri Hassan (), Romlah Jaffar () and Mohd Hafizzudin Bangaan Syah Abdullah ()
Additional contact information
Sharifah Faatihah Syed Mohd Fuzi: Universiti Teknologi MARA, Faculty of Administrative Science and Policy Studies
Mohamat Sabri Hassan: Universiti Kebangsaan Malaysia, Faculty of Economics and Management
Romlah Jaffar: Universiti Kebangsaan Malaysia, Faculty of Economics and Management
Mohd Hafizzudin Bangaan Syah Abdullah: Universiti Kebangsaan Malaysia, Faculty of Economics and Management

A chapter in Proceedings of the 2nd International Conference on Administrative Science (ICAS 2024), 2025, pp 609-617 from Springer

Abstract: Abstract The rise of corporate scandals and business collapse has emphasised the need for firms to have robust corporate governance, particularly in enterprise risk management. In line with agency and signalling theories, firms should disclose more information to reduce information asymmetry and reflect on their quality, thereby enhancing investor confidence. Therefore, this study proposes a more detailed enterprise risk management (ERM) disclosure index to explore the extent of ERM disclosure among publicly listed companies in Malaysia. Additionally, the study examines the factors contributing to the level of ERM disclosure based on corporate governance and financial characteristics. Panel data analyses were performed on a sample of 832 firms listed on the Bursa Malaysia Main Market for the period 2016–2019. The results indicate that board size, board independence, female directors, audit quality and dividend yield are positively associated with ERM disclosure. In contrast, firm leverage and liquidity are negatively associated. This study contributes theoretically by highlighting that strong corporate governance is essential to improve a firm’s transparency regarding its enterprise risk management practices.

Keywords: Corporate governance; Disclosure; Enterprise risk management; Financial characteristics; Transparency (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-791-5_61

Ordering information: This item can be ordered from
http://www.springer.com/9789464637915

DOI: 10.2991/978-94-6463-791-5_61

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().