Corporate Governance and Financial Characteristics Influence on Enterprise Risk Management Disclosure in Malaysia

DOI

10.2991/978-94-6463-791-5_61How to use a DOI?

Keywords

Corporate governance; Disclosure; Enterprise risk management; Financial characteristics; Transparency

Abstract

The rise of corporate scandals and business collapse has emphasised the need for firms to have robust corporate governance, particularly in enterprise risk management. In line with agency and signalling theories, firms should disclose more information to reduce information asymmetry and reflect on their quality, thereby enhancing investor confidence. Therefore, this study proposes a more detailed enterprise risk management (ERM) disclosure index to explore the extent of ERM disclosure among publicly listed companies in Malaysia. Additionally, the study examines the factors contributing to the level of ERM disclosure based on corporate governance and financial characteristics. Panel data analyses were performed on a sample of 832 firms listed on the Bursa Malaysia Main Market for the period 2016–2019. The results indicate that board size, board independence, female directors, audit quality and dividend yield are positively associated with ERM disclosure. In contrast, firm leverage and liquidity are negatively associated. This study contributes theoretically by highlighting that strong corporate governance is essential to improve a firm’s transparency regarding its enterprise risk management practices.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sharifah Faatihah Syed Mohd Fuzi
AU  - Mohamat Sabri Hassan
AU  - Romlah Jaffar
AU  - Mohd Hafizzudin Bangaan Syah Abdullah
PY  - 2025
DA  - 2025/08/05
TI  - Corporate Governance and Financial Characteristics Influence on Enterprise Risk Management Disclosure in Malaysia
BT  - Proceedings of the 2nd International Conference on Administrative Science (ICAS 2024)
PB  - Atlantis Press
SP  - 609
EP  - 617
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-94-6463-791-5_61
DO  - 10.2991/978-94-6463-791-5_61
ID  - Fuzi2025
ER  -