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Risk Assessment in the Context of Internal Audit in Greek Listed Companies at Athens Stock Exchange

Author

Listed:
  • Harilaos F. Harissis
  • George E. Makrivogiatzakis
  • Stavros E. Arvanitis

Abstract

The objective of this paper is to highlight the strength of risk assessment within the framework of internal audit and the value could be added to modern enterprises, through its role, as a major component in modern corporate governance. Reviewing literature we concluded in applying four logistic models (logit regression), using three sets of variables for fiscal year 2010. According to our estimations, risk assessment within the framework of internal audit is positively affected by the existence of a risk management committee, the board of directors' size, the percentage of non-executive members of the board, compliance risk and environmental and security risk. These findings are partially consistent with literature. In addition, it is not affected by any other kind of risk, entity’s size or subsidiaries and affiliated companies which do not match with literature. Possible explanatory factors could be either, that Greek Listed companies may be staffed with law skilled executives, or the rapid fall of the index in Athens Stock Exchange, after global recession of 2008. As far as we know there is no other research for Greek firms in risk assessment within the framework of internal audit. So, this paper contributes to research in this field.

Suggested Citation

  • Harilaos F. Harissis & George E. Makrivogiatzakis & Stavros E. Arvanitis, 2013. "Risk Assessment in the Context of Internal Audit in Greek Listed Companies at Athens Stock Exchange," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 14-37.
    • Handle: RePEc:ers:ijebaa:v:i:y:2013:i:3:p:14-37
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    File URL: http://www.ersj.eu/repec/ers/pijeba/13_3_p2.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Risk Assessment; Internal Audit; Non-Executive Members;
    All these keywords.

    JEL classification:

    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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