Corporate Governance Analysis on Risk Exposure and Performance of AIA Bhd.

Annathurai, Anusha (2019): Corporate Governance Analysis on Risk Exposure and Performance of AIA Bhd.

Abstract

Analysis on corporate governance principles of AIA Bhd. is studied in this article along with their risk exposure and performance as per the concern of the research objective. The performance of the company is indicated by Return on Asset which act as the dependent variable of this study. Whereas, the risk exposure is indicated by internal and external factors of independent variables. Internal factors cover Liquidity Risk in terms of current ratio and quick ratio; Credit Risk in terms of average collection period and debt to income ratio; and Operational Risk in terms of operational ratio and operating margin. Meanwhile, external factor covers Market Risk in terms of Gross Domestic Product (GDP) rate, Inflation Rate, Interest Rate and Exchange Rate. The analysis of this study shows that the influence of these independent variables is significant towards the dependent variable. The analysis concluded that the most significant variable is Operating Margin.

• Item Type: MPRA Paper
• Language: English
• Keywords: AIA Bhd., Corporate Governance, Performance, Risk, Insurance, Return on Asset, Liquidity Risk, Credit Risk, Operational Risk, Market Risk, Current Ratio, Quick Ratio, Average Collection Period, Debt to Income Ratio, Operational Risk, Operating Margin, Gross Domestic Product (GDP), Inflation Rate, Interest Rate, Exchange Rate AIA Bhd., Corporate Governance, Performance, Risk, Insurance, Return on Asset, Liquidity Risk, Credit Risk, Operational Risk, Market Risk, Current Ratio, Quick Ratio, Average Collection Period, Debt to Income Ratio, Operational Risk, Operating Margin, Gross Domestic Product (GDP), Inflation Rate, Interest Rate, Exchange Rate
• Subjects: G - Financial Economics > G3 - Corporate Finance and Governance; G - Financial Economics > G3 - Corporate Finance and Governance > G32 - Financing Policy ; Financial Risk and Risk Management ; Capital and Ownership Structure ; Value of Firms ; Goodwill; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

References

Shleifer, A., & Vishny, R. W. A (April 1996)., Survey of Corporate Governance. NBER Working Paper, (W5554).

Joo, S. J., Nixon, D., & Stoeberl, P. A. (2011). Benchmarking with data envelopment analysis: a return on asset perspective. Benchmarking: An International Journal, 18(4), 529-542.

Spooner, R. A., Watson, P. D., Marsden, C. J., Smith, D. C., Moore, K. A., Cook, J. P., ... & Roberts, L. M. (2004). Protein disulphide-isomerase reduces ricin to its A and B chains in the endoplasmic reticulum. Biochemical Journal, 383(2), 285-293.

Altman, E. I., & Saunders, A. (1997). Credit risk measurement: Developments over the last 20 years. Journal of banking & finance, 21(11-12), 1721-1742.

Cruz, M. G. (2002). Modeling, measuring and hedging operational risk (pp. 19-2). New York,: John Wiley & Sons.

Morris, S., & Shin, H. S. (2004). Coordination risk and the price of debt. European Economic Review, 48(1), 133-153.

Dowd, K. (2002). Experience of Free Banking. Routledge. Rajasekar, S., Philominathan, P., & Chinnathambi, V. (2013). Research Metodology.

Falope, O. I., & Ajilore, O. T. (2009). Working capital management and corporate profitability: evidence from panel data analysis of selected quoted companies in Nigeria. Research journal of business management, 3(3), 73-84.

Khadafi, M., Heikal, M., & Ummah, A. (2014). Influence analysis of return on assets (ROA), return on equity (ROE), net profit margin (NPM), debt to equity ratio (DER), and current ratio (CR), against corporate profit growth in automotive in Indonesia Stock Exchange. International Journal of Academic Research in Business and Social Sciences, 4(12)