Role of risk governance in promoting operational risk disclosure and performance: An asean-5 banking perspective

Etikah Karyani, Setio Anggoro Dewo, Budi Frensidy, Wimboh Santoso

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

This paper aims to investigate the effect of risk governance on five-ASEAN banks operational risk disclosure and performance. The uniqueness of this paper lies in countries setting and risk governance index based on the most recent guideline of bank governance. This study uses 285 bank-year observations comprising hand-collected data for the period 2010-2014. The results suggest that, consistent with the agency and stakeholder theory, risk governance practices can encourage the banks tend to improve operational risk disclosure while to decrease their ROA and P/E. However, these practices can positively affect these performances if mediated by the operational risk disclosure quality. This means that risk governance practices will encourage managers to present operational risk disclosures quality to improve bank performance.

Original languageEnglish
Pages (from-to)1218-1235
Number of pages18
JournalInternational Journal of Business and Society
Volume20
Issue number3
Publication statusPublished - 1 Jan 2019

Keywords

  • Operational risk disclosure
  • Price earnings ratio
  • Return on assets
  • Risk governance

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