Enterprise risk management and investment efficiency: Australian evidence from risk management committees

IF 2 4区管理学 Q3 BUSINESS

Australian Journal of Management Pub Date : 2023-01-03 DOI:10.1177/03128962221144513

Haiyan Jiang, Jing Jia, Larelle (Ellie) Chapple

引用次数: 1

Abstract

This study investigates whether and how effective risk management committees (RMCs) improve corporate investment efficiency. Using a sample of listed companies included in the Australian Securities Exchange (ASX) 300 index, we document that effective RMCs improve investments’ sensitivity to growth opportunities and profitability. The results also reveal that effective RMCs enhance corporate investment efficiency by restricting not only over- but also underinvestment. Subsequent analyses demonstrate that the positive effect of RMCs on investment efficiency is due to the reduced information asymmetry and free cash flow problems. Furthermore, we find a more pronounced effect of RMCs on investment efficiency when companies experience a high level of economic policy uncertainty (EPU) and financial constraint. G14, G34, M41

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企业风险管理和投资效率:来自澳大利亚风险管理委员会的证据

本研究探讨风险管理委员会(rmc)是否及如何有效地提高企业投资效率。采用澳大利亚证券交易所(ASX) 300指数的上市公司样本，我们证明有效的rmc提高了投资对增长机会和盈利能力的敏感性。研究结果还表明，有效的资本管理公司不仅通过限制过度投资，而且还通过限制投资不足来提高企业投资效率。随后的分析表明，rmc对投资效率的积极影响是由于信息不对称和自由现金流问题的减少。此外，我们发现，当企业面临较高的经济政策不确定性和财务约束时，rmc对投资效率的影响更为显著。G14, g34, m41

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

Australian Journal of Management Multiple-

CiteScore

10.60

自引率

4.20%

发文量

期刊介绍： The objectives of the Australian Journal of Management are to encourage and publish research in the field of management. The terms management and research are both broadly defined. The former includes the management of firms, groups, industries, regulatory bodies, government, and other institutions. The latter encompasses both discipline- and problem-based research. Consistent with the policy, the Australian Journal of Management publishes research in accounting, applied economics, finance, industrial relations, political science, psychology, statistics, and other disciplines, provided the application is to management, as well as research in areas such as marketing, corporate strategy, operations management, organisation development, decision analysis, and other problem-focuses paradigms.