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Research Insights About Risk Governance: Implications From A Review Of Erm Research, Therese R. Viscelli, Mark S. Beasley, Dana R. Hermanson
Research Insights About Risk Governance: Implications From A Review Of Erm Research, Therese R. Viscelli, Mark S. Beasley, Dana R. Hermanson
Faculty and Research Publications
In recent years, expectations for increased risk governance have been placed explicitly on boards of directors. In response, boards are being held responsible for not only understanding and approving management’s risk management processes, but they are also being held responsible for assessing the risks identified by those processes as part of overseeing management’s pursuit of value. These increasing responsibilities have led a number of organizations to adopt enterprise risk management (ERM) as a holistic approach to risk management that extends beyond traditional silo-based risk management techniques. As boards, often through their audit committee, consider management’s implementation of ERM as part …
Bank Loan Agreement And Ceo Compensation, Amine Khayati, Donald L. Ariail
Bank Loan Agreement And Ceo Compensation, Amine Khayati, Donald L. Ariail
Faculty and Research Publications
Contrary to other forms of outside financing, the announcement of a bank loan agreement prompts a positive and significant market return. Throughout the literature, bank loans are deemed special and unique due to multiple benefits accruing to bank borrowers. The short-term positive market reaction is however inconsistent with the long-term underperformance of borrowing firms (Billet et al., 2006). We find that unlike shareholders, CEOs gain from the bank loan relation over the long-term. Specifically, we find that bank loan agreement elicits a significant increase in total compensation through an increase in non-performance based compensation components such as salary, bonus and …
The Impact Of Enterprise Risk Management On The Internal Audit Function, Mark S. Beasley, Richard Clune, Dana Hermanson
The Impact Of Enterprise Risk Management On The Internal Audit Function, Mark S. Beasley, Richard Clune, Dana Hermanson
Faculty and Research Publications
This exploratory study provides evidence about factors associated with the overall impact of enterprise risk management (ERM) on the internal audit function’s activities. Based on responses from 122 organizations in several countries, we find that ERM has the greatest impact on internal audit’s activities when (a) the organization’s ERM process is more completely in place, (b) the CFO and audit committee have called for greater internal audit activity related to ERM, (c) the chief audit executive’s (CAE) tenure is longer, (d) the organization is in the banking industry or is an educational institution, and (e) the internal audit function has …
Corporate Governance Ratings: Good Or Bad?, Dana R. Hermanson
Corporate Governance Ratings: Good Or Bad?, Dana R. Hermanson
Faculty and Research Publications
If something is important, eventually it gets measured. The last several years clearly have demonstrated that corporate governance is important, so it is no surprise that an industry has emerged to provide ratings of companies' corporate governance. There are several governance ratings providers, and three have been chosen that illustrate the types of rating systems currently in use: 1. Institutional Shareholder Services, 2. Corporate Library-Board Effectiveness Ratings, and 3. Governance Metrics International. For each service, the rating system's purpose, methodology, and criteria are presented. What is good about governance ratings? The ratings further promote the importance of good governance, and …