PENGARUH KARAKTERISTIK KOMITE AUDIT TERHADAP PEMBENTUKAN RISK MANAGEMENT COMMITTEE (Studi Empiris Pada Perusahaan Non Finansial di BEI)

Abstract

This study aims to analyze the effect of Audit Committee characteristics on the establishment of Risk Management Committee (RMC) in non financial firms. Audit Committees characteristics used in this study are independency, financially expertise, size, and diligence. This study also used firm size, leverage, business complexity, and auditor reputation as control variables. Samples of this study were non financial firms listed on Indonesia Stock Exchange for the observation period of 2009 until 2010. Samples were collected by purposive sampling method and resulted 178 samples. This study used logistic regression for analyzing data. The result showed that Audit Committee size and audit committee diligence affect the establishment of RMC. Firm size as control variable had positive and significant effect on the establishment of RMC.