Risk Committees and Implied Cost of Equity Capital
Access Status
Authors
Date
2017Type
Metadata
Show full item recordCitation
Source Title
ISSN
School
Collection
Abstract
© 2017 International Review of Finance Ltd. 2017. We investigate the association between the existence of risk committee and implied cost of equity capital in a unique institutional setting where the formation of the board risk committee as part of the risk governance mechanism is not mandatory in the Gulf Cooperation Council (GCC) financial institutions. Using data from the six GCC countries, we find that implied cost of equity capital is negatively associated with the existence of board risk committee. These findings indicate that GCC financial firms with better risk governance practices at board level have lower implied cost of equity capital. We contribute to the extant literature on-board risk governance in emerging market context.
Related items
Showing items related by title, author, creator and subject.
-
Al-Hadi, Ahmed Khamis Hamdan; Taylor, Grantley; Hossain, M. (2015)This research investigates the association between discretionary disaggregation in mandatory risk disclosures, auditor conservatism and the implied cost of equity capital. Based on a sample of financial firms from the six ...
-
Al-Hadi, Ahmed Khamis Hamdan (2015)This thesis examines the association between market risk disclosures and corporate governance, investment efficiency and implied cost of capital. The results show firms that have adopted risk management committee increase ...
-
Chikolwa, Bwembya C (2008)According to the Reserve Bank of Australia (2006) the increased supply of Commercial Mortgage-Backed Securities (CMBS), with a range of subordination, has broadened the investor base in real estate debt markets and reduced ...