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dc.contributor.authorHadi-Al, A.
dc.contributor.authorHasan, Mostafa
dc.contributor.authorHabib, A.
dc.identifier.citationHadi-Al, A. and Hasan, M. and Habib, A. 2015. Risk Committee, Firm Life Cycle, and Market Risk Disclosures. Corporate Governance: An International Review. 24 (2): pp. 145-170.

Manuscript Type – Empirical. Research Question/Issue - This study investigates whether the existence of a separate risk committee and risk committee characteristics are associated with market risk disclosures. It also tests whether the role of a risk committee in affecting market risk disclosures varies for different firm life cycle stages. Research Findings/Insights - Using 677 firm-year observations of financial firms from Gulf Cooperation Council (GCC) countries during the years 2007–2011, we find that firms with a separate risk committee are associated with greater market risk disclosures, an effect that is more pronounced for mature-stage firms. Furthermore, findings suggest that risk committee qualifications and size have a significant positive impact on market risk disclosures. Theoretical/Academic Implications - This study complements the corporate governance literature by incorporating agency theory, legitimacy theory, stakeholder theory, and the resource-based theory to provide more robust evidence of the impact of a separate risk committee and the firm life cycle on market risk disclosures. Our results support the monitoring effect of a separate risk committee and suggest that a separate risk committee can improve “firm-level corporate governance” in the GCC countries characterized by a poor informational environment. Practitioner/ Policy Implications - Findings from this study provide evidence that the existence, qualifications, and size of risk committees may be used as a channel to improve the disclosure level, suggesting a policy prescription for regulators and policymakers. Investors may also find these results useful in forming their own expectations about firm-level risk disclosures.

dc.publisherBlackwell Publishing
dc.subjectMarket Risk Disclosure
dc.subjectFirm Life Cycle
dc.subjectCorporate Governance
dc.subjectRisk Committee
dc.titleRisk Committee, Firm Life Cycle, and Market Risk Disclosures
dc.typeJournal Article
dcterms.source.titleCorporate Governance: An International Review
curtin.departmentSchool of Economics and Finance
curtin.accessStatusFulltext not available

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