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

Author

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  • Abdullah, Azrul Bin

    (Universiti Teknologi MARA, Perlis Branch, Arau Campus)

  • Ismail, Ku Nor Izah Ku

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 Bin & Ismail, Ku Nor Izah Ku, 2018. "The Effectiveness of Risk Management Committee and Hedge Accounting Practices in Malaysia," SocArXiv 89cbp, Center for Open Science.
    • Handle: RePEc:osf:socarx:89cbp
    DOI: 10.31219/osf.io/89cbp
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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. 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.
    3. Alex J. Pollock, 2005. "FAS 133: What Is Accounting Truth?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 17(3), pages 102-106, June.
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