The Role of Board of Directors in Risk Management - Empirical Study | ||||
| مجلة جامعة جنوب الوادى الدولية للبحوث التجارية | ||||
| Volume 3, Issue 1, June 2019, Page 205-226 PDF (411.6 K) | ||||
| Document Type: المقالة الأصلية | ||||
| DOI: 10.21608/mgsji.2019.282485 | ||||
 View on SCiNiTO | ||||
| Authors | ||||
| Safaa Elsayed Ftohy Abdel Rahman; Ali Abdelkarim Rawy; Mohamed Ali Shabeeb; Ahmad Abd-Elsalam Abu-Musa Abd-Elsalam Abu-Musa | ||||
| Abstract | ||||
| Abstract The current study examines the role of board of directors in improving risk management. It examines the impact of board of directors' characteristics on risk management effectiveness through board size, board independence, the number of board meetings, and CEO duality. In order to achieve this goal, the study introduced an index to measure the risk management. The proposed index is consisted of thirteen items, which are measured by the count of risk management related sentences through a manual content analysis of annual reports of a sample of listed Egyptian companies. The financial reports issued from 2014 to 2017 were analyzed. The research sample includes 50 non-financial firms listed in Egyptian stock exchange with a total number of observations equal to 200 from 13 sectors. for testing the following hypotheses: • The first hypothesis: "There is no significant relationship between board size and the risk management in the Egyptian listed companies". • The second hypothesis: "There is no significant relationship between board independence and the risk management in the Egyptian listed companies". • The third hypothesis: "There is no significant relationship between the number of board meetings and the risk management in the Egyptian listed companies". • The fourth hypothesis: "There is no significant relationship between CEO duality and the risk management in the Egyptian listed companies". The overall results revealed that the board of directors' characteristics affects risk management. The results reveal that board independence, board meetings, and CEO duality are positively and significantly correlated with risk management index. On the other hand, board size shows statistically insignificant correlation with risk management index. The study recommended that members of the board should have qualifications and experience so that they can perform the functions efficiently in risk management. | ||||
|
Statistics Article View: 56 PDF Download: 83 |
||||
