Abstract:

This study aims to provide empirical evidence on the role of IR quality in mediating the effect of board of director effectiveness on firm risk directly and indirectly. This study is a quantitative research and used panel data. The samples were used are 143 listed companies on the Johannesburg Stock Exchange (South Africa) with 4 years observation that is from 2014 to 2017. Structural Equation Model was used to analize data and test hypotheses. The results found that BOD effectiveness has a significant negative effect on firm risk but has not affect IR quality, and IR quality has not affects firm risk directly. This study also found that IR quality cannot mediate the effect of BOD effectiveness on firm risk. It is because the implementation of IR was only use to comply with regulatory requirements.