Access the full text.
Sign up today, get DeepDyve free for 14 days.
Shane Heitzman, Mengjie Huang (2018)
Internal Information Quality and the Sensitivity of Investment to Market Prices and Accounting ProfitsEconometric Modeling: Corporate Finance & Governance eJournal
J. Francis, Ryan LaFond, Per Olsson, K. Schipper (2005)
The market pricing of accruals qualityJournal of Accounting and Economics, 39
Gary King, Richard Nielsen (2019)
Why Propensity Scores Should Not Be Used for MatchingPolitical Analysis, 27
Ian Gow, G. Ormazabal, Daniel Taylor (2009)
Correcting for Cross-Sectional and Time-Series Dependence in Accounting ResearchManagerial Accounting
J. Heckman (1979)
Sample selection bias as a specification errorApplied Econometrics, 31
Bernard Black, A. Carvalho, Vikramaditya Khanna, Woochan Kim, B. Yurtoglu (2017)
Corporate Governance Indices and Construct ValidityEuropean Finance eJournal
Gary Biddle, G. Hilary, Rodrigo Verdi (2009)
How Does Financial Reporting Quality Relate to Investment Efficiency?Finance Educator: Courses
(2008)
Estimating Standard Errors in Finance Panel Data Sets: Comparing Approaches
H. Kaiser (1960)
The Application of Electronic Computers to Factor AnalysisEducational and Psychological Measurement, 20
(2008)
Financial distress and corporate risk management: Theory and evidence
Larry Fauver, Mingyi Hung, Xi Li, Alvaro Taboada (2016)
Board Reforms and Firm Value: Worldwide EvidenceLSN: Corporate Governance International (Topic)
Feng Chen, Ole‐Kristian Hope, Qingyuan Li, Xin Wang (2010)
Financial Reporting Quality and Investment Efficiency of Private Firms in Emerging MarketsCGN: Disclosure & Accounting Decisions (Topic)
H. Duong, Justin Nguyen, M. Nguyen, S. Rhee (2018)
Navigating through Economic Policy Uncertainty: The Role of Corporate Cash HoldingsAsian Finance Association (AsianFA) 2017 Conference (Archive)
Brad Badertscher, Nemit Shroff, H. White (2013)
Externalities of Public Firm Presence: Evidence from Private Firms’ Investment DecisionsERN: Firms Temporal Investment & Financing Behavior (Topic)
Jonathan Shipman, Quinn Swanquist, Robert Whited (2017)
Propensity Score Matching in Accounting ResearchThe Accounting Review, 92
S. Hansson (2009)
Measuring UncertaintyStudia Logica, 93
Jing Jia, M. Bradbury (2020)
Risk management committees and firm performanceAustralian Journal of Management, 46
(2013)
ebalance: AStataPackage for Entropy Balancing
L. Chapple, Jacquelyn Humphrey (2013)
Does Board Gender Diversity Have a Financial Impact? Evidence Using Stock Portfolio PerformanceJournal of Business Ethics, 122
N. Subramaniam, L. McManus, Jian Zhang (2009)
Corporate governance, firm characteristics and risk management committee formation in Australian companiesManagerial Auditing Journal, 24
T. Do (2021)
Do terrorist attacks matter to dividend policy?Corporate Governance: An International Review
M. Sobel (1982)
Asymptotic Confidence Intervals for Indirect Effects in Structural Equation ModelsSociological Methodology, 13
M. Azim (2012)
Corporate governance mechanisms and their impact on company performance: A structural equation model analysisAustralian Journal of Management, 37
R. Baron, D. Kenny (1986)
The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations.Journal of personality and social psychology, 51 6
M. Pirson, S. Turnbull (2010)
Corporate Governance, Risk Management, and the Financial Crisis: An Information Processing ViewCorporate Finance: Governance
Xikai Chen, C. Le, Yaowen Shan, Stephen Taylor (2020)
Australian policy uncertainty and corporate investmentPacific-Basin Finance Journal
Scott Richardson (2006)
Over-investment of free cash flowReview of Accounting Studies, 11
Yizhong Wang, Carl Chen, Y. Huang (2014)
Economic policy uncertainty and corporate investment: Evidence from ChinaPacific-basin Finance Journal, 26
Jimi Kim, H. Jo (2021)
Controlling owner type, state capitalism, and corporate social responsibility in AfricaCorporate Governance: An International Review
S. Baker, N. Bloom, S. Davis (2013)
Measuring Economic Policy UncertaintyERN: Studies of Particular Policy Episodes (Topic)
I. Brown, A. Steen, J. Foreman (2009)
Risk Management in Corporate Governance: A Review and ProposalIRPN: Governance (Sub-Topic)
(2017)
S&P/ASX 300 index
Fuxiu Jiang, W. Cai, Xue Wang, B. Zhu (2018)
Multiple large shareholders and corporate investment: Evidence from ChinaJournal of Corporate Finance
Mei Cheng, D. Dhaliwal, D. Dhaliwal, Yuan Zhang (2013)
Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reportingJournal of Accounting and Economics, 56
Juan Lara, Beatriz Osma, Fernando Penalva (2010)
Accounting Conservatism and Firm Investment EfficiencyCorporate Finance: Valuation
Matthew Billett, Jon Garfinkel, Yi Jiang (2010)
The Influence of Governance on Investment: Evidence from a Hazard ModelKelley: Finance (Topic)
Julie Wulf, Harbir Singh (2011)
How Do Acquirers Retain Successful Target CEOs? The Role of GovernanceManag. Sci., 57
Cláudia Custódio, Miguel Ferreira, Pedro Matos (2013)
Generalists versus specialists: Lifetime work experience and chief executive officer payJournal of Financial Economics, 108
D. Larcker, Scott Richardson, A. Tuna (2007)
Corporate Governance, Accounting Outcomes, and Organizational PerformanceCapital Markets: Asset Pricing & Valuation eJournal
Muhammad Atif, Allen Huang, Benjamin Liu (2020)
The effect of say on pay on CEO compensation and spill-over effect on corporate cash holdings: Evidence from AustraliaPacific-basin Finance Journal, 64
Grantley Taylor, G. Richardson (2012)
International corporate tax avoidance practices: evidence from Australian firmsThe International Journal of Accounting, 47
Patricia Dechow, Ilia Dichev (2002)
The Quality of Accruals and Earnings: The Role of Accrual Estimation ErrorsThe Accounting Review, 77
Jens Hainmueller (2012)
Entropy Balancing for Causal Effects: A Multivariate Reweighting Method to Produce Balanced Samples in Observational StudiesPolitical Analysis, 20
R. Rajan, Julie Wulf (2006)
Are perks purely managerial excessJournal of Financial Economics, 79
A. Hillman, T. Dalziel (2003)
Boards of Directors and Firm Performance: Integrating Agency and Resource Dependence PerspectivesAcademy of Management Review, 28
Douglas Smith, Robert Brame (2003)
Tobit Models in Social Science ResearchSociological Methods & Research, 31
T. Crook, S. Todd, James Combs, D. Woehr, D. Ketchen (2011)
Does human capital matter? A meta-analysis of the relationship between human capital and firm performance.The Journal of applied psychology, 96 3
Ugur Lel, Darius Miller (2014)
Does Takeover Activity Cause Managerial Discipline? Evidence from International M&A LawsLSN: Law & Finance: Empirical (Topic)
This study investigates whether and how effective risk management committees (RMCs) improve corporate investment efficiency. Using a sample of listed companies included in the Australian Securities Exchange (ASX) 300 index, we document that effective RMCs improve investments’ sensitivity to growth opportunities and profitability. The results also reveal that effective RMCs enhance corporate investment efficiency by restricting not only over- but also underinvestment. Subsequent analyses demonstrate that the positive effect of RMCs on investment efficiency is due to the reduced information asymmetry and free cash flow problems. Furthermore, we find a more pronounced effect of RMCs on investment efficiency when companies experience a high level of economic policy uncertainty (EPU) and financial constraint.JEL Classifications:G14, G34, M41
Australian Journal of Management – SAGE
Published: Jan 1, 2023
Keywords: Economic policy uncertainty; financial constraint; investment efficiency; risk management committee
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.