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The Effectiveness of Risk Management Committee and Hedge Accounting Practices in Malaysia

Author

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  • Abdullah, Azrul
  • Ku Ismail, Ku Nor Izah

Abstract

This study examines the effectiveness of Risk Management Committee (RMC) in influencing hedge accounting practices among non-financial companies listed on the Bursa Malaysia. Our regression results reveal that that there is no significant relationship between the application of hedge accounting and the effectiveness of RMCs. However, there are positive and significant relationships between the choice of hedge accounting and each of company size and leverage. The implications of the findings were discussed.

Suggested Citation

  • Abdullah, Azrul & Ku Ismail, Ku Nor Izah, 2016. "The Effectiveness of Risk Management Committee and Hedge Accounting Practices in Malaysia," MPRA Paper 77960, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:77960
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    File URL: https://mpra.ub.uni-muenchen.de/77960/1/MPRA_paper_77960.pdf
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    References listed on IDEAS

    as
    1. Siti Rochmah Ika & Nazli A. Mohd Ghazali, 2012. "Audit committee effectiveness and timeliness of reporting: Indonesian evidence," Managerial Auditing Journal, Emerald Group Publishing, vol. 27(4), pages 403-424, April.
    2. Alex J. Pollock, 2005. "FAS 133: What Is Accounting Truth?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 17(3), pages 102-106, June.
    3. Jacqueline Birt & Michaela Rankin & Chen L. Song, 2013. "Derivatives use and financial instrument disclosure in the extractives industry," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 53(1), pages 55-83, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Abdullah, Azrul Bin, 2018. "Company-specific characteristics and the choice of hedge accounting for derivatives reporting: Malaysian case," SocArXiv npa6v, Center for Open Science.
    2. Abdullah, Azrul & Ku Ismail, Ku Nor Izah, 2017. "Companies’ Characteristics and the Choice of Hedge Accounting for Derivatives Reporting: Evidence from Malaysian Listed Companies," MPRA Paper 90213, University Library of Munich, Germany.

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    More about this item

    Keywords

    Hedge Accounting; Hedging Activities; Risk Management Committee; Corporate Governance; Financial Reporting;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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