Figure 1
A conceptual framework diagram illustrating the relationship between risk management committee activities, information asymmetry, and corporate litigation risk. The diagram includes four main components: Risk Management Committee (RMC), Information Asymmetry (Mediator), Corporate Litigation Risk, and Institutional Context (SOE vs. Non-SOE). The RMC, which involves oversight and monitoring activities, has a direct negative effect on corporate litigation risk. It also indirectly affects litigation risk through information asymmetry, which is the extent of information managers possess that is not available to external stakeholders. Information asymmetry, in turn, has a negative effect on corporate litigation risk. The institutional context, which compares state-owned enterprises (SOEs) with non-SOEs, moderates the direct effect of RMC on litigation risk, weakening it in SOEs due to principal-principal conflicts and political influence.Conceptual framework