Achieving Operational Efficiency through Risk Disclosure

IF 0.8 Q4 BUSINESS, FINANCE

Asian Journal of Business and Accounting Pub Date : 2022-06-30 DOI:10.22452/ajba.vol15no1.5

Septy Nur Sulistyawati, A. Suryani

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引用次数: 1

Abstract

Manuscript type: Research paper Research aims: This study aims to investigate the effect of risk disclosure and CEO age on the operational efficiency. Design/Methodology/Approach: A quantitative study was undertaken on 130 manufacturing firms listed on the Indonesian Stock Exchange in 2019. Risk disclosure was evaluated through the content analysis, while operational efficiency was measured using the Data Envelopment Analysis (DEA) technique. The data was analysed by utilising weighted least square regression. Research findings: Results show that risk disclosure positively affects operational efficiency. The effect on CEO’s age however, is not substantial. These findings imply that a company becomes more efficient when it discloses more risk, while the CEO’s age has no bearing on the efficiency attained. Risk disclosure operates as a form of risk awareness that demonstrates management’s commitment to resolving the problems. Theoretical contribution/Originality: This study addresses the gap in the literature by empirically assessing how risk disclosure affect firms’ efficiency in developing countries. It also expands on previous literature by considering CEO age as determinant of the efficiency. The findings of the study support the stakeholder theory in which a company must consider its key stakeholders, especially those who encourage it to improve its efficiency, and hence, risk disclosure is required. Practitioner/Policy implications: This research suggests companies to disclose more to improve operational efficiency. It also recommends investors to invest in firms committed to risk disclosure. Research limitation/Implications: In this study, risk disclosure was measured by the number of risks disclosed in the annual report and did not consider other sources. Therefore, future studies should further explore risk disclosure in different media, such as the newspaper, corporate websites, and social medias. Additionally, this study was conducted based on one industry sector, and hence, future studies may incorporate broader range of industries to capture the impact of CEO characteristics. Keywords: CEO Age, Data Envelopment Analysis (DEA), Operational Efficiency, Risk Disclosure JEL Classification: M41

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通过风险披露实现运营效率

研究目的:本研究旨在探讨风险披露和CEO年龄对运营效率的影响。设计/方法/方法:对2019年在印度尼西亚证券交易所上市的130家制造公司进行了定量研究。通过内容分析评估风险披露，而使用数据包络分析(DEA)技术测量操作效率。利用加权最小二乘回归对数据进行分析。研究发现:结果表明，风险披露对运营效率有正向影响。然而，对CEO年龄的影响并不大。这些发现表明，一家公司披露的风险越多，效率就越高，而CEO的年龄与效率无关。风险披露是风险意识的一种形式，表明管理层对解决问题的承诺。理论贡献/独创性:本研究通过实证评估风险披露如何影响发展中国家的公司效率，解决了文献中的空白。它还扩展了以前的文献，认为CEO年龄是效率的决定因素。研究结果支持了利益相关者理论，即公司必须考虑其关键利益相关者，特别是那些鼓励公司提高效率的利益相关者，因此需要进行风险披露。从业者/政策启示:本研究建议公司披露更多信息以提高运营效率。它还建议投资者投资于致力于风险披露的公司。研究限制/启示:在本研究中，风险披露是通过年度报告中披露的风险数量来衡量的，没有考虑其他来源。因此，未来的研究应进一步探索不同媒体的风险披露，如报纸、企业网站、社交媒体等。此外，本研究是基于一个行业部门进行的，因此，未来的研究可能会纳入更广泛的行业，以捕捉CEO特征的影响。关键词:CEO年龄、数据包络分析(DEA)、运营效率、风险披露

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来源期刊

Asian Journal of Business and Accounting BUSINESS, FINANCE-

CiteScore

2.00

自引率

11.10%

发文量

期刊介绍： An academic journal that aims to advance knowledge in the business and accounting disciplines, to narrow the gap between theory and practice, and to set direction for policy initiatives in Asia. Welcome to the Asian Journal of Business and Accounting (AJBA). AJBA is an international refereed journal, published biannually (30th June and 30th December) by the Faculty of Business and Accountancy, University of Malaya, Malaysia. AJBA aims to publish scholarly business researches that are relevant to Malaysia and the Asian region. It intends to highlight the practical implications in promoting better business decision making process and the formulation of public policy in Asia. This journal publishes theoretical, conceptual, and empirical papers within the broad areas of business and accounting in Asia. The AJBA covers a broad spectrum of the business and accounting disciplines. A suggestive (though not necessarily comprehensive) list of areas that would be included in this journal are: general management, strategic management, human resource management, organizational behaviour, labour and industrial relations, international business management, business communication, entrepreneurship, leadership, management science, operations management, production management, supply chain management, marketing management, brand management, consumer behaviour, information management, e-marketing, e-commerce, quality management, retailing, service marketing, hospitality management, hotel and tourism management, asset pricing, capital and money markets, corporate finance, derivatives markets, finance and banking, financial economics, etc.