Abstract

This study examines whether risk disclosure and risk committee are associated with major banks’ performance worldwide. We also test whether the composition of a risk committee moderates (i.e. strengthens or weakens) this relationship. Using 1760 bank-year observations of 160 banks across 45 countries for the years 2006–2016, we find that risk disclosure and risk committees are associated with a bank’s overall performance. In addition, the findings suggest that the composition of a risk committee moderates the relationship between risk disclosure and bank performance. The results support the contention that risk disclosure and risk committee can be used as a channel to optimise the performance of a bank. Conclusions reflect on how the agency, signalling, and resource-based theories inform this phenomenon. This paper advances our understanding of the role of risk committee characteristics on the relationship between risk disclosures and bank performance from both theoretical and empirical perspectives, suggesting risk committee is not a panacea for risk monitoring. However, the existence of a strong risk committee is vital for effective risk governance. Findings from this research may have valuable practical and policy implications, particularly in the banking sector.

摘要

本研究考察了风险披露和风险委员会是否与全球主要银行的业绩相关。我们还测试风险委员会的组成是否会缓和（即加强或削弱）这种关系。使用 2006-2016 年 45 个国家 160 家银行的 1760 个银行年度观察结果，我们发现风险披露和风险委员会与银行的整体业绩相关。此外，研究结果表明，风险委员会的组成调节了风险披露与银行业绩之间的关系。结果支持风险披露和风险委员会可以作为优化银行绩效的渠道的论点。结论反映了代理、信号和基于资源的理论如何为这种现象提供信息。本文从理论和实证的角度加深了我们对风险委员会特征对风险披露与银行绩效之间关系的作用的理解，表明风险委员会不是风险监控的灵丹妙药。然而，强大的风险委员会的存在对于有效的风险治理至关重要。这项研究的结果可能具有宝贵的实践和政策意义，尤其是在银行业。