New issue of Risk Governance and Control: Financial Markets & Institutions journal

The recent (Volume 9, issue 2) issue of Risk Governance and Control: Financial Markets & Institutions journal deals with the topics of audit, risk reporting, risk disclosure, credit derivative, corporate finance, etc. The full issue of the journal is available following the link.

George Drogalas, Alkiviadis Karagiorgos, Dimitrios Mitskinis, Nikolaos Antonakis aim at evaluating external audit services based on the International Standards on Auditing. Specifically, there is an empirical approach in the health sector aimed at the investigation of the quality of the audit work, the general principles and responsibilities, the risk assessment, the audit evidence and using the work of others. To facilitate the progress of the research, a questionnaire was created and distributed to the employees of the Economic Departments of the largest health care organizations in Northern Greece.

Abdelmoneim Bahyeldin Mohamed Metwally, Hesham Ali Ahmed Ali, Ahmed Abdelnaby Diab, Khaled Hussainey provide a phronetic review of Risk Management (RM), and its relationship to Management Accounting and Control (MAC). Building on Flyvbjerg’s (2012) phronetic approach, we study Risk-Based Management Control (RBMC) to answer the phronetic four main questions: (1) Where are we going? (2) Who gains and who loses? (3) Is this desirable? (4) What should we do? This review starts its lines of enquiry from the growing fears in the late modernity and risk society (Beck, 1992; Giddens, 1990), that led to heterogenic reactions and unintended consequences which need exploring and revealing. They explored whether this is a right reaction or whether it would give rise to an “illusion of control” fortified with some unintended consequences.

Enzo Scannella analyzes the derivatives disclosure in banks’ annual risk reports. In this paper, the author uses content analysis to examine the qualitative and quantitative profiles of the derivatives disclosure at a cross-country level, with particular reference to credit derivatives. The empirical research is conducted on a sample of large European banks. The paper also shows that there is room to improve various aspects of derivatives disclosure, and provides some useful insights for further research.

Abdel Razaq Farah Freihat investigates the factors that have an impact on price to earnings (P/E) ratios in Jordanian industrial public shareholding companies listed on the Amman Stock Exchange and to help investors determine their investment value by using P/E ratio. The study also aims to help stock issuers with pricing initial public offers using a more scientific model base.

Umi Kulsum, Sudarso Kaderi Wiryono and Yunieta Anny Nainggolan study performance reverse takeover firms or reverse merger firms. The topic has been studied in correlation to traditional initial public offering (IPO) performance. However, those studies have not been extensive enough to explain the contributing factors of the reverse merger performance. Some of the previous studies have compared the implication of corporate governance attributes and the implication of the financial conditions of the involving firms to the reverse merger firm performance. However, there are more areas to be assessed in the perspective of corporate governance, including the variety of ownership structure and its effect on risk-taking behavior and reputation. This study proposes a new conceptual model on how corporate governance and financial characteristics influence the reverse merger performance, constructed from the literature review.

Mohammad Al-Attar, Osama Samih Shaban, Nafez Nimer Ali’s goal is to figure out the type of relationship between the effective interest rates and the consumer price index rate CP and to determine the real relationship between them. In order to achieve the desired objectives of the research, we calculated the rate of inflation through the change in the consumer price index CPI, for the period 2010-2018. A Pearson Correlation is also conducted between the CPI rates and effective interest rates for the same period. The outcomes of CPI calculations show that the CPI average for the year 2018 reached 124.66 points, indicating a 5.33% difference from the same period of 2017, and this difference is referred to as the inflation rate, also, the outcomes of the correlation analysis conducted refers to a negative relationship between the CPI rates and the effective interest rates.

The Journal of Risk Governance and Control: Financial Markets & Institutions is published quarterly. Currently, we announce a call for papers for the next issue of the journal. In order to submit a manuscript, please contact the managing editor of the journal Polina Bahmetenko directly at