The Effect of Risk Management Committee Overlap on Firm Financial Performance: The Moderating Role of Leverage
DOI:
https://doi.org/10.59759/business.v5i3.2415الكلمات المفتاحية:
Risk Management Committee Overlap, Corporate Governance, Firm Financial Performance, Leverage; Amman Stock Exchange.الملخص
تبحث هذه الدراسة في تأثير تداخل لجنة إدارة المخاطر على الأداء المالي للشركة مع استخدام الرافعة المالية كمتغير معتدل من خلال الاعتماد على عينة مكونة من 66 شركة أردنية غير مالية مدرجة خلال الفترة الممتدة من 2017 الى 2020. يتم قياس الاداء المالي للشركة باستخدام العائد على اللأصول. لذلك، يشير مصطلح الأداء المالي للشركة في هذه الدراسة اينما ذكر الى العائد على الأصول. تمت عملية تحليل بيانات هذه الدراسة باستخدام طريقتي التاثيرات الثابتة والمربعات الصغرى المعممة. تشير النتائج الى الأثر الايجابي ولكن غير المهم من حيث دلالته الاحصائية لتداخل لجنة إدارة المخاطر على الأداء المالي للشركة. كذلك، كان التاثير المعتدل للرافعة المالية ايجابيا وذو دلالة احصائية، مما يشير الى ان تأثير تداخل لجنة إدارة المخاطر على الأداء المالي للشركة يصبح أقوى لدى الشركات المدرجة في بورصة عمان عند المستويات الأعلى من الرافعة المالية. تعزز نتائج البحث مستوى المعرفة حول الأداء المالي للشركة من خلال التأكيد على دور الرافعة المالية في تشكيل العلاقة بين تداخل لجنة إدارة المخاطر و الأداء المالي للشركة في سياق الاقتصاد النامي. تشير هذة الننتائج الى وجوب أخذ مجلس الأدارة في اعتباره خيار التمويل عن طريق الدين عند وضع السياسات المالية وتقديم التوجيه الاستراتيجي للادارة بشأن القرارات المالية، حيث ان المستويات الأعلى من الرافعة المالية تزيد من فعالية تداخل لجنة إدارة المخاطر في تحسين الأداء المالي للشركة. أيضا، تساعد هذه النتائج المستثمرين من خلال توضيح التأثيرات التي تساهم في تعزيز الأداء المالي للشركة، وبتالي تمكينهم من اتخاذ قرارات استثمارية أكثر كفاءة.
التنزيلات
المراجع
Abdullah, H., & Tursoy, T. (2021). Capital structure and firm performance: evidence of Germany under IFRS adoption. Review of Managerial Science, 15(2), 379-398.
Abor, J. (2007). Debt policy and performance of SMEs: Evidence from Ghanaian and South African firms. The journal of risk finance, 8(4), 364-379.
Ahmed, A. M., Nugraha, D. P., & Hágen, I. (2023). The relationship between capital structure and firm performance: The moderating role of agency cost. Risks, 11(6), 102.
Alabdulkarim, N., Kalyanaraman, L., & Alhussayen, H. (2024). The impact of firm size on the relationship between leverage and firm performance: evidence from Saudi Arabia. Humanities and Social Sciences Communications, 11(1), 1664.
Alazzam, A. R., Saleh, N. M., Jaffar, R., & Hamzah, N. (2025). Moderating role of the Arab spring crisis on the association between government ownership and corporate social disclosure. Heliyon, 11(15), e44062.
Aldboush, H. H., Almasria, N. A., & Ferdous, M. (2023). Determinants of firm profitability: empirical evidence from Jordan’s service sector. Business: Theory and Practice, 24(2), 438-446.
Alduneibat, K. A. (2023). The effect of risk management committee characteristics on a company’s performance in an emerging country. Journal of Governance and Regulation, 12(1),376-386.
Alorayni, O., Alazzam, A. R., Altarawneh, M., & Alwreikat, H. (2026). Board Characteristics, Audit Committees, and Earnings Manipulation: Examining the Moderating Influence of CEO Power in Jordan's Capital Market. Economic Studies journal, 35(5), 152-174.
Alqatamin, R. M., Altawalbeh, M. A., & Shbeilat, M. K. (2024). Do the attributes of a Risk Management Committee Affect Company Performance? A comparative study before and after the COVID-19 pandemic. Corporate and Business Strategy Review, 5(1), 410-419.
Altarawneh, M., Farhan, N. H., & Alsamhi, M. H. (2026). The moderation effect of business environment factors on the impact of corporate governance and firm performance: empirical evidence from Middle East region. Cogent Business & Management, 13(1), 2604879.
Amman Stock Exchange. (2025). Monthly statistical bulletins 2025. Available online: https://www.exchange.jo/en/bulletins/monthly/markets (accessed on 24 May 2026).
Amran, A., Ishak, M. S., Zulkafli, A. H., & Nejati, M. (2010). Board structure and extent of corporate governance statement. International Journal of Managerial and Financial Accounting, 2(4), 383-400.
Andres, P., & Vallelado, E. (2008). Corporate governance in banking: The role of the board of directors. Journal of banking & finance, 32(12), 2570-2580.
Arcot, S., Bruno, V., & Faure-Grimaud, A. (2010). Corporate governance in the UK: Is the comply or explain approach working?. International Review of Law and Economics, 30(2), 193-201.
Awotomilusi, N. S., Ajoloko, O. M., Saka, B. F., Adeniran, T. E., Owonifari, V. O., & Dagunduro, M. E. (2025). Risk management committee attributes and market performance of listed insurance firms in Nigeria. International Journal of Economics and Financial Issues, 15(3), 29-41.
Ayaz, M., Mohamed Zabri, S., & Ahmad, K. (2021). An empirical investigation on the impact of capital structure on firm performance: evidence from Malaysia. Managerial Finance, 47(8), 1107-1127.
Bai, J., Choi, S. H., & Liao, Y. (2021). Feasible generalized least squares for panel data with cross-sectional and serial correlations. Empirical Economics, 60(1), 309-326.
Bhuiyan, M. B. U., & Cheema, M. A. (2024). Overlapping committee membership and cost of equity capital. Pacific-Basin finance journal, 84, 102282.
Boshnak, H. A. (2022). Determinants of corporate social and environmental voluntary disclosure in Saudi listed firms. Journal of Financial Reporting and Accounting, 20(3-4), 667-692.
Boudiab, M., & Ishak, S. (2020). The influence of risk management committee attributes on performance of non-financial listed firms in Malaysia. Journal of critical reviews, 7(19), 9857-9865.
Boudiab, M., Ishak, S., & Al-Dhamari, R. A. A. (2022). The influence of risk management committees on the financial performance of non-financial companies in Malaysia. International Journal of Trade and Global Markets, 16(1-3), 47-58.
Brandes, P., Dharwadkar, R., & Suh, S. (2016). I know something you don't know!: The role of linking pin directors in monitoring and incentive alignment. Strategic Management Journal, 37(5), 964-981.
Casciaro, T., & Piskorski, M. J. (2005). Power imbalance, mutual dependence, and constraint absorption: A closer look at resource dependence theory. Administrative science quarterly, 50(2), 167-199.
Chatterjee, C., & Nag, T. (2022). Do women on boards enhance firm performance? Evidence from top Indian companies. International Journal of Disclosure and Governance, 20(2), 155.
Coles, J. L., Daniel, N. D., & Naveen, L. (2008). Boards: does one size fit all?. Journal of financial economics, 87(2), 329-356.
Coles, J. L., Daniel, N. D., & Naveen, L. (2020). Director overlap: Groupthink versus teamwork. SSRN, 3650609.
Danso, A., Lartey, T. A., Gyimah, D., & Adu-Ameyaw, E. (2021). Leverage and performance: do size and crisis matter?. Managerial Finance, 47(5), 635-655.
Ding, B. Y., & Wei, F. (2023). Overlapping membership between risk management committee and audit committee and bank risk-taking: Evidence from China. International Review of Financial Analysis, 86, 102501.
Drees, J. M., & Heugens, P. P. (2013). Synthesizing and extending resource dependence theory: A meta-analysis. Journal of management, 39(6), 1666-1698.
Dsouza, S., Nasseredine, H., Habibniya, H., & Tripathy, N. (2025). Do firm-level variables impact dividend pay-out? Examining application of two-step system GMM panel model. Cogent Social Sciences, 11(1), 2472915.
Edacherian, S., Richter, A., Karna, A., & Gopalakrishnan, B. (2024). Connecting the right knots: The impact of board committee interlocks on the performance of Indian firms. Corporate Governance: An International Review, 32(1), 135-155.
Eisenberg, T., Sundgren, S., & Wells, M. T. (1998). Larger board size and decreasing firm value in small firms. Journal of financial economics, 48(1), 35-54.
Faleye, O., Hoitash, R., & Hoitash, U. (2011). The costs of intense board monitoring. Journal of financial economics, 101(1), 160-181.
Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The journal of law and Economics, 26(2), 301-325.
Forbes, D. P., & Milliken, F. J. (1999). Cognition and corporate governance: Understanding boards of directors as strategic decision-making groups. Academy of management review, 24(3), 489-505.
Galbraith, J. R. (1974). Organization design: An information processing view. Interfaces, 4(3), 28-36.
Geng, H., Hau, H., Michaely, R., & Nguyen, B. (2022). Does board overlap promote coordination between firms. Available at SSRN 3887280.
Gerged, A. M. (2021). Factors affecting corporate environmental disclosure in emerging markets: The role of corporate governance structures. Business strategy and the environment, 30(1), 609-629.
Ghardallou, W. (2023). The heterogeneous effect of leverage on firm performance: a quantile regression analysis. International Journal of Islamic and Middle Eastern Finance and Management, 16(1), 210-225.
Harrison, J. R. (1987). The strategic use of corporate board committees. California Management Review, 30(1), 109-125.
Hartzell, J. C., & Starks, L. T. (2003). Institutional investors and executive compensation. The journal of finance, 58(6), 2351-2374.
Huynh, Q. L., Hoque, M. E., Susanto, P., Watto, W. A., & Ashraf, M. (2022). Does financial leverage mediates corporate governance and firm performance?. Sustainability, 14(20), 13545.
International Monetary Fund. (2024). Jordan: First review under the extended arrangement under the Extended Fund Facility (Country Report No. 2024/197). https://www.imf.org/-/media/files/publications/cr/2024/english/1jorea2024002-print-pdf.pdf
Jaiswal, S., & Elmarzouky, M. (2025). Capital structure and firm performance: evidence from FTSE all-share firms during Covid-19. Journal of Risk and Financial Management, 18(11), 648.
Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. The Journal of Finance, 48(3), 831-880.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360.
Jermias, J. (2008). The relative influence of competitive intensity and business strategy on the relationship between financial leverage and performance. The British Accounting Review, 40(1), 71-86.
Jia, J., & Bradbury, M. E. (2021). Risk management committees and firm performance. Australian Journal of Management, 46(3), 369-388.
Jiang, H., Luo, Y., Xia, J., Hitt, M., & Shen, J. (2023). Resource dependence theory in international business: Progress and prospects. Global strategy journal, 13(1), 3-57.
Kallamu, B. S. (2015). Risk management committee attributes and firm performance. International Finance and Banking, 2(2), 2374-2089.
Kanapathippillai, S., Puwanenthiren, P., Mihret, D., & Dang, M. (2024). Board sub-committee effectiveness, director attraction and director attrition: do nomination and remuneration committees matter?. Pacific-Basin Finance Journal, 86, 102441.
Khan, S. (2022). The impact of capital structure on bank performance in emerging markets: Empirical evidence from GCC countries. Financial Internet Quarterly, 18(1), 56-65.
Khan, S., & Qasem, A. (2024). Are the firms’ capital structure and performance related? Evidence from GCC economies. Cogent Business & Management, 11(1), 2344749.
Khoza, F. (2025). The impact of liquidity and leverage on the financial performance of the Johannesburg Stock Exchange-listed consumer goods firms. Journal of Risk and Financial Management, 18(9), 510.
Kismawadi, E. R. (2025). Improving Islamic bank performance through agency cost and dual board governance. Journal of Islamic Accounting and Business Research, 16(3), 461-483.
Klein, A. (1998). Firm performance and board committee structure. The journal of law and Economics, 41(1), 275-304.
Lee, W. M. (2020). The determinants and effects of board committees. Journal of Corporate Finance, 65, 101747.
Li, K., Niskanen, J., & Niskanen, M. (2019). Capital structure and firm performance in European SMEs: does credit risk make a difference?. Managerial Finance, 45(5), 582-601.
Lipton, M., & Lorsch, J. W. (1992). A modest proposal for improved corporate governance. The business lawyer, 48, 59-77.
Liu, H., & Fong, M. W. (2010). Board characteristics of medium and large Chinese companies. Corporate Governance: The international journal of business in society, 10(2), 163-175.
Malik, M., Shafie, R., & Ku Ismail, K. N. I. (2021). Do risk management committee characteristics influence the market value of firms?. Risk Management, 23(1), 172-191.
Mansour, M., Yamin, I., Saram, M., Alduwailah, A., Al-Enzi, N., AlWadi, B., & Marei, A. (2024). Capital structure and performance nexus: insights from fixed-effects and quantile analysis. Journal of Infrastructure Policy and Development, 8(7), 5119.
Musa, A., Abdul Latif, R., & Abdul Majid, J. (2025). Risk management committee and earnings management: evidence from an emerging market. Journal of Accounting in Emerging Economies, 15(2), 273-305.
Musallam, S. R. (2024). The effect of the board of directors on financial performance and the existence of risk management as an intervening variable. Journal of Islamic Marketing, 15(4), 1097-1114.
Nasimi, A. N. (2016). Effect of capital structure on firm profitability (an empirical evidence from London, UK). Global Journal of Management and Business Research, 16(4), 1-13.
Nassar, S. (2016). The impact of capital structure on Financial Performance of the firms: Evidence from Borsa Istanbul. Journal of Business & Financial Affairs, 5(2), 1000173.
Nassim, I., Nassim, S., & Moussa, A. (2025). Financial leverage and firm performance in Moroccan agricultural SMEs: Evidence of nonlinear dynamics. International Journal of Financial Studies, 13(3), 164.
Nguyen, V. C., & Huynh, T. N. T. (2023). Characteristics of the board of directors and corporate financial performance—empirical evidence. Economies, 11(2), 53.
Nocco, B. W., & Stulz, R. M. (2006). Enterprise risk management: Theory and practice. Journal of applied corporate finance, 18(4), 8-20.
Pandey, K. D., & Sahu, T. N. (2019). Debt financing, agency cost and firm performance: Evidence from India. Vision, 23(3), 267-274.
Pfeffer, J., & Salancik, G. R. (2003). External control of organizations: A resource dependence perspective (pp. 100-125). Stanford: Stanford.
Reeb, D., & Upadhyay, A. (2010). Subordinate board structures. Journal of Corporate Finance, 16(4), 469-486.
Rutledge, R. W., & Karim, K. E. (2016). The Effects of Board Independence and CEO Duality on Firm Performance: Evidence from the NASDAQ-100 Index with Controls for Endogeneity. Journal of Applied Business & Economics, 18(2), 49-71.
Salim, M., & Yadav, R. (2012). Capital structure and firm performance: Evidence from Malaysian listed companies. Procedia-Social and Behavioral Sciences, 65(3), 156-166.
Sdiq, S. R., & Abdullah, H. A. (2022). Examining the effect of agency cost on capital structure-financial performance nexus: Empirical evidence for emerging market. Cogent Economics & Finance, 10(1), 2148364.
Sheikh, N. A., Wang, Z., & Khan, S. (2013). The impact of internal attributes of corporate governance on firm performanceEvidence from Pakistan. International Journal of Commerce and Management, 23(1), 38-55.
Soumadi, M. M., & Hayajneh, O. S. (2012). Capital structure and corporate performance empirical study on the public Jordanian shareholdings firms listed in the Amman stock market. European scientific journal, 8(22), 173-189.
Subramaniam, N., McManus, L., & Zhang, J. (2009). Corporate governance, firm characteristics and risk management committee formation in Australian companies. Managerial auditing journal, 24(4), 316-339.
Sunny, S. A., & Hoque, M. (2025). The impact of board characteristics on financial performance in an emerging economy: the moderating role of nomination and remuneration committee. European Journal of Management and Business Economics.
Tao, N. B., & Hutchinson, M. (2013). Corporate governance and risk management: The role of risk management and compensation committees. Journal of Contemporary Accounting & Economics, 9(1), 83–99.
Toumeh, A. A. (2023). The effect of risk management committee characteristics on firm performance: an empirical investigation. Indian Journal of Corporate Governance, 16(2), 323-342.
Toumeh, A. A., & Ghazalat, A. (2026). Mandatory governance and risk management committees and firm performance: evidence from Jordan’s non-financial sector. Cogent Business & Management, 13(1), 2618306.
Tuan, T. M., Nha, P. V. T., & Phuong, T. T. (2019). Impact of agency costs on firm performance: Evidence from Vietnam. Organizations and Markets in Emerging Economies, 10(2), 294-309.
Tulcanaza-Prieto, A. B., Lee, Y., & Anzules-Falcones, W. (2024). The moderating role of corporate governance in the relationship between leverage and firm value: evidence from the Korean market. Risks, 12(1), 11.
Tushman, M. L., & Nadler, D. A. (1978). Information processing as an integrating concept in organizational design. Academy of management review, 3(3), 613-624.
Ullaha, M. R., Chandb, A., Akramc, S., & Inam, A. (2021). Too Busy, Too Bad? Grey, Outside, Busy and Overlap Directors and Financial Performance in Pakistan. Governance, 15(5).
Zheng, X., & Cullinan, C. P. (2010). Compensation/audit committee overlap and the design of compensation systems. International Journal of Disclosure and governance, 7(2), 136-152.
التنزيلات
منشور
كيفية الاقتباس
إصدار
القسم
الرخصة
الحقوق الفكرية (c) 2026 سلسلة الأعمال

هذا العمل مرخص بموجب Creative Commons Attribution-NonCommercial 4.0 International License.

