Risk Disclosure and Performance of Malaysian Construction Public Listed Companies

• Main Authors: Ching Ching Wong, Alashwal Ali M., Azli Mohd Rahim Faizul
• Format: Article
• Language: English
• Published: EDP Sciences 2019-01-01
• Series: MATEC Web of Conferences
• Online Access: https://www.matec-conferences.org/articles/matecconf/pdf/2019/15/matecconf_iconbee2019_03012.pdf

Due to regulatory reforms, corporate governance has evolved with Enterprise Risk Management become prominence since the 1990s. In Malaysia, Statement of Risk Management and Internal Control with Malaysian Corporate Code of Governance are regulatory compliance on risk management for the Public Listed Companies. Companies are required to make risk disclosures in their annual report based on Risk Management Framework, which indirectly provided insights for shareholders and investors to assess the company’s performance. This study aims to determine the extent of risk implementation based on Risk Management Framework and the effect on construction Public Listed Companies performance. The sample of this study consists of 227 construction Public Listed Companies in Malaysia Bourse from 2011, 2014, 2015, 2016 and 2017. Content analysis is conducted on the company’s annual reports for the five years based on Risk Management Framework components and financial ratios. The study revealed the presence of both guidelines had increased risk disclosure among construction Public Listed Companies but there was no significant improvement in their financial performance.