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dc.contributor.authorElamer, Ahmed A.
dc.contributor.authorBenyazid, I.
dc.date.accessioned2018-10-22T16:22:48Z
dc.date.available2018-10-22T16:22:48Z
dc.date.issued2018
dc.identifier.citationElamer AA and Benyazid I (2018) The Impact of Risk Committee on Financial Performance of UK Financial Institutions. International Journal of Accounting and Finance. Vol 8(2): 161-180.en_US
dc.identifier.urihttp://hdl.handle.net/10454/16621
dc.descriptionyesen_US
dc.description.abstractFollowing the recent financial crisis, Walker (2009) recommended that financial institutions should form a separate board level risk committee (RC) to manage various risks and prevent excessive risk taking. This research focuses on investigating how firms with separate risk committees differ from those that do not have one. The main research question we address is whether RCs have a fundamental influence on financial performance. We measure financial performance by ROA and ROE and we control for firm size, liquidity and gearing. Our sample consists of all listed financial institutions in FTSE-100 index from 2010 through 2014. Results indicate a negative relationship between risk committee characteristics (i.e., existence, size, independence, and meeting frequency) and financial performance. The results also indicate that firms without risk committee (RC) performed considerably well than firms with RC. The results are contradictory to Walker’s (2009) where RCs are recommended for their ability to mitigate and manage risks more expertly. However, we argue that establish strong RC constrain management ability to make excessive risk taking behaviour which may affect financial performance negatively. We contribute to the current research on the impact of risk committee governance attributes on financial performance after banking and governance reforms.en_US
dc.language.isoenen_US
dc.relation.isreferencedbyhttps://doi.org/10.1504/IJAF.2018.10014470en_US
dc.rights© 2018 Inderscience. Reproduced in accordance with the publisher's self-archiving policy.en_US
dc.subjectCorporate governanceen_US
dc.subjectRisk managementen_US
dc.subjectRisk committeeen_US
dc.subjectFinancial institutionsen_US
dc.subjectFinancial performanceen_US
dc.titleThe Impact of Risk Committee on Financial Performance of UK Financial Institutionsen_US
dc.status.refereedyesen_US
dc.date.Accepted2018-03-12
dc.date.application2018-07-05
dc.typeArticleen_US
dc.date.EndofEmbargo2019-07-05
dc.type.versionAccepted Manuscripten_US
dc.description.publicnotesFull text will be available at the end of the publisher's embargo, 5th July 2019en_US


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