Management
Zohre Arefmanesh; Habib Ansari Samani
Abstract
Accounting information plays a crucial role in the decision-making process of lenders. They pay special attention to the income statement and its quality when making decisions. Consequently, financial statements must meet the minimum required standards. Adopting a comprehensive risk management approach ...
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Accounting information plays a crucial role in the decision-making process of lenders. They pay special attention to the income statement and its quality when making decisions. Consequently, financial statements must meet the minimum required standards. Adopting a comprehensive risk management approach can enhance earnings quality, ensuring effective reporting and compliance with laws and regulations. Therefore, this study aims to examine the impact of external financing and the moderating role of risk management on earnings quality. The research hypotheses were analyzed and tested using a multivariate regression model with panel data. The study's statistical population consists of firms listed on the Tehran Stock Exchange. The findings demonstrate a positive and significant relationship between a firm's external financing and earnings quality. This suggests that risk management plays a moderating role in the relationship between external financing activity and earnings quality. External financing and risk management contribute to improving the quality of financial information. Investors can evaluate the reliability of a firm's accounting data based on the level of external financing and enterprise risk management components. Thus, these findings have implications for managers and regulators to enhance the quality of financial information and promote the use of a comprehensive risk management approach to build creditor trust.
Accounting
Matias Andika Yuwono; Dyna Rachmawati
Abstract
Agro is a growing company engaged in the plantation sector. As a growing company, companies need to improve company performance by implementing a risk management process based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management (ERM) to reduce disruption ...
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Agro is a growing company engaged in the plantation sector. As a growing company, companies need to improve company performance by implementing a risk management process based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management (ERM) to reduce disruption to daily operational activities, and companies can allocate resources more effective and efficient so that company goals can be achieved. To implement COSO ERM effectively, companies must conduct a thorough coordination and integration process in their operational activities. This qualitative study aims to analyze the application of COSO ERM in controlling operational risk in the trading division at PT. Agro. The risk management process carries from the risk identification process to the monitoring process. The results of this study indicate that the trading division has significant risks in its primary activities. Hence, it is necessary to carry out a monitoring process and appropriate actions to control these risks not to harm the company.
Erin Olayinka; Eriki Emoarehi; Arumona Jonah; Jacob Ame
Volume 4, Issue 9 , September 2017, , Pages 937-952
Abstract
This study examines the impact of Enterprise Risk Management (ERM) on financial performance in the emerging market with special focus on the Nigerian financial sector. The study investigates 40 companies from the period 2012 to 2016 resulting into 200 firm observations. The method used to measure financial ...
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This study examines the impact of Enterprise Risk Management (ERM) on financial performance in the emerging market with special focus on the Nigerian financial sector. The study investigates 40 companies from the period 2012 to 2016 resulting into 200 firm observations. The method used to measure financial performance was Return on Assets (ROA) while Value at Risk (VaR) was used as a proxy for Enterprise Risk Management (ERM). The study used other control variables such as Leverage (LEV), Board Size (BSIZE), Firm Size (FSIZE), Institutional Ownership (INTOWN) and Risk Management Committee Size (RMC). The result of regression coefficient shows that VaR (0.216), BSIZE (0.218), FSIZE (0.021), INTOWN (0.001), and RMC (0.032) are statistically significant with the exception of LEV (-0.572) which shows an inverse relationship with financial performance. The empirical findings show that ERM is positively and significantly related to financial performance. The results support the hypothesis that ERM has a significant impact on the financial performance of listed firms in the Nigerian financial sector. We recommend that the regulatory authorities (Central Bank of Nigeria, Financial Reporting Council of Nigeria etc.) in charge of the financial sector should ensure that all firms in the sector adopt ERM as a matter of urgency and continue to ensure strict compliance with the ERM framework.
