Do Risk Disclosures Matter for Bank Performance? A Moderating Effect of Risk Committee

IF 4.6 Q1 BUSINESS, FINANCE
S. Nahar, M. Jahan
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引用次数: 6

Abstract

Abstract This study examines whether risk disclosure and risk committee are associated with major banks’ performance worldwide. We also test whether the composition of a risk committee moderates (i.e. strengthens or weakens) this relationship. Using 1760 bank-year observations of 160 banks across 45 countries for the years 2006–2016, we find that risk disclosure and risk committees are associated with a bank’s overall performance. In addition, the findings suggest that the composition of a risk committee moderates the relationship between risk disclosure and bank performance. The results support the contention that risk disclosure and risk committee can be used as a channel to optimise the performance of a bank. Conclusions reflect on how the agency, signalling, and resource-based theories inform this phenomenon. This paper advances our understanding of the role of risk committee characteristics on the relationship between risk disclosures and bank performance from both theoretical and empirical perspectives, suggesting risk committee is not a panacea for risk monitoring. However, the existence of a strong risk committee is vital for effective risk governance. Findings from this research may have valuable practical and policy implications, particularly in the banking sector.
风险披露对银行业绩重要吗?风险委员会的调节作用
摘要本研究考察了风险披露和风险委员会是否与全球主要银行的业绩有关。我们还测试了风险委员会的组成是否会缓和(即加强或削弱)这种关系。通过对45个国家的160家银行在2006年至2016年的1760个银行年度的观察,我们发现风险披露和风险委员会与银行的整体业绩有关。此外,研究结果表明,风险委员会的组成调节了风险披露与银行业绩之间的关系。研究结果支持了这样一种观点,即风险披露和风险委员会可以作为优化银行业绩的渠道。结论反映了代理、信号和基于资源的理论是如何影响这一现象的。本文从理论和实证两个角度加深了我们对风险委员会特征在风险披露与银行绩效之间关系中的作用的理解,表明风险委员会并不是风险监测的灵丹妙药。然而,一个强大的风险委员会的存在对于有效的风险治理至关重要。这项研究的结果可能具有宝贵的实践和政策意义,尤其是在银行业。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Accounting in Europe
Accounting in Europe BUSINESS, FINANCE-
CiteScore
5.00
自引率
7.10%
发文量
14
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