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

Information Journal Special Issues Vol. 19 (7B) July 2016

5 Pages Posted: 5 Apr 2016 Last revised: 14 Nov 2016

See all articles by Azrul Abdullah

Azrul Abdullah

Universiti Teknologi MARA; Fakultas Vokasi

Ku Nor Izah Ku Ismail

Universiti Utara Malaysia - School of Accountancy

Date Written: January 26, 2016

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.

Keywords: Hedge Accounting, Hedging Activities, Risk Management Committee, Corporate Governance, Financial Reporting

Suggested Citation

Abdullah, Azrul and Ku Ismail, Ku Nor Izah, The Effectiveness of Risk Management Committee and Hedge Accounting Practices in Malaysia (January 26, 2016). Information Journal Special Issues Vol. 19 (7B) July 2016, Available at SSRN: https://ssrn.com/abstract=2758428

Azrul Abdullah (Contact Author)

Universiti Teknologi MARA ( email )

Universiti Teknologi MARA
Perlis Branch, Arau Campus
Arau, Perlis 02600
Malaysia

Fakultas Vokasi ( email )

Universitas Airlangga, Surabaya, Indonesia
waqar.ahmed.m-2018@feb.unair.ac.id
surabaya, AK jawa timur 60115
Indonesia

Ku Nor Izah Ku Ismail

Universiti Utara Malaysia - School of Accountancy ( email )

Sintok, Kedah Darul Aman 06010
Malaysia

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