RETRACTED: The effect of a separate risk management committee (RMC) towards firms' performances on consumer goods sector in Malaysia
Business Process Management Journal
ISSN: 1463-7154
Article publication date: 13 January 2021
Issue publication date: 3 August 2021
Retraction notice
The publishers of Business Process Management Journal wish to retract the article Rimin, F., Bujang, I., Wong Su Chu, A. and Said, J. (2021), “The effect of a separate risk management committee (RMC) towards firms’ performances on consumer goods sector in Malaysia”, Business Process Management Journal, Vol. 27 No. 4, pp. 1200-1216. https://doi.org/10.1108/BPMJ-06-2020-0265
An internal investigation into a series of submissions has uncovered evidence that the peer review process was compromised. As a result of these concerns, the findings of the article cannot be relied upon. This decision has been taken in accordance with Emerald’s publishing ethics and the COPE guidelines on retractions.
The authors of this paper would like to note that they do not agree with the content of this notice.
The publishers of the journal sincerely apologize to the readers.
Abstract
Purpose
This paper aims to examine the effect of setting up a separate risk management committee (RMC) on the performance of listed companies in Malaysia's consumer goods sector. The study considers several firm characteristics as control variables to influence the establishment of the RMC, such as firm size and leverage.
Design/methodology/approach
The sample comprises 169 observations throughout a nine-year time frame starting from 2010 to 2018. The current study used a dichotomous variable of “1” to represent a listed company that establishes a separate RMC and “0” as otherwise. The data analysis is based on a static panel data technique, which utilised the fixed effects model (FEM) and random effects model (REM).
Findings
There is a significant positive relationship between a separate RMC and Tobin's Q which suggests that the establishment of a separate RMC that consists of a majority of independent non-executive directors would significantly improve the firm's performance. The current work supports agency theory which suggests that independent non-executive directors can enhance the transparency of corporate boards as they improved the firm's compliance with the disclosure requirements.
Originality/value
Proper risk management and internal control are critical aspects of a company's governance, management and operations that can influence a firm's performance. The empirical evidence contributes to the knowledge of corporate governance within the context of a RMC’s role in monitoring a company's risk management framework, policies and its implementation. The formation of a separate RMC as a board committee will help to enhance the effectiveness of the risk oversight role of the BOD.
Keywords
Citation
Rimin, F., Bujang, I., Wong Su Chu, A. and Said, J. (2021), "RETRACTED: The effect of a separate risk management committee (RMC) towards firms' performances on consumer goods sector in Malaysia", Business Process Management Journal, Vol. 27 No. 4, pp. 1200-1216. https://doi.org/10.1108/BPMJ-06-2020-0265
Publisher
:Emerald Publishing Limited
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