The effect of risk management on firm financial performance

Andreas Mulatua Sinurat, Sylvia Veronica Siregar

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

This study examines the effect of risk management on financial performance of listed firms on the Indonesia Stock Exchange year 2015-2016. We have total sample of 710 observations. This study uses three variables as a proxy of risk management: the appointment of Chief Risk Officer, the establishment of risk management committee, and the financial competence of the Chief Executive Officer and to measure financial performance we use return on asset (accounting-based measure) and price-to-book value (market-based measure). The results of this study show that the appointment of Chief Risk Officer and the establishment of the risk management committee has no significant effect on both measures of financial performance, while the financial competence of the Chief Executive Officer has a significant positive effect on the firm market financial performance.

Original languageEnglish
Title of host publicationProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019
Subtitle of host publicationEducation Excellence and Innovation Management through Vision 2020
EditorsKhalid S. Soliman
PublisherInternational Business Information Management Association, IBIMA
Pages9818-9827
Number of pages10
ISBN (Electronic)9780999855126
Publication statusPublished - 1 Jan 2019
Event33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019 - Granada, Spain
Duration: 10 Apr 201911 Apr 2019

Publication series

NameProceedings of the 33rd International Business Information Management Association Conference, IBIMA 2019: Education Excellence and Innovation Management through Vision 2020

Conference

Conference33rd International Business Information Management Association Conference: Education Excellence and Innovation Management through Vision 2020, IBIMA 2019
Country/TerritorySpain
CityGranada
Period10/04/1911/04/19

Keywords

  • Chief risk officer
  • Financial performance
  • Risk management
  • Risk management committee

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