Beyond Governance Compliance: Risk Management Committees, Risk Disclosure, and Financial Performance in a Frontier Market

Al-Awasa, K, Al-Hajaya, K, Eltweri, A ORCID: 0000-0002-5253-5678, Alshdaifat, SM and Adali, M (2026) Beyond Governance Compliance: Risk Management Committees, Risk Disclosure, and Financial Performance in a Frontier Market. Administrative Sciences, 16 (9). p. 439. ISSN 2076-3387

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Abstract

This study is two-fold. First, it examines the impact of risk management committee characteristics on the level of risk information disclosure (financial, non-financial, and total risk disclosure). Second, it investigates the effect of risk disclosure on financial performance measured by return on equity (ROE). Data were collected from the annual reports of 39 banking and insurance companies listed on the Amman Stock Exchange (ASE) during the 2019–2023 period, resulting in 195 initial firm-year observations. After excluding 64 firm-year observations for which risk management committee (RMC) characteristics were unavailable, the final regression sample comprised 131 firm-year observations. Multiple linear regression analysis was employed to test the study hypotheses. The findings indicate that risk disclosure improves with greater committee activity, as measured by the frequency of committee meetings. The results also reveal a significant negative relationship between committee size and non-financial risk disclosure. However, no significant relationship was found between risk disclosure and ROE. The findings demonstrate that governance effectiveness depends more on active committee engagement than on formal committee characteristics, extending current understanding of Risk Management Committee effectiveness. By distinguishing between financial and non-financial risk disclosure, the study provides a more nuanced explanation of how governance mechanisms influence organisational transparency within frontier market environments.

Item Type:	Article
Uncontrolled Keywords:	3501 Accounting, Auditing and Accountability; 3502 Banking, Finance and Investment; 35 Commerce, Management, Tourism and Services; 3507 Strategy, Management and Organisational Behaviour; 3507 Strategy, management and organisational behaviour; 4407 Policy and administration
Subjects:	H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Divisions:	Liverpool Business School
Publisher:	MDPI AG
Date of acceptance:	3 September 2026
Date of first compliant Open Access:	5 October 2026
Date Deposited:	05 Oct 2026 14:30
Last Modified:	05 Oct 2026 14:30
DOI or ID number:	10.3390/admsci16090439
URI:	https://researchonline.ljmu.ac.uk/id/eprint/29608

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