Risk Committees and Implied Cost of Equity Capital
© 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 t...
| Main Authors: | , , , |
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| Format: | Journal Article |
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Wiley-Blackwell Publishing Asia
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/58033 |
| _version_ | 1848760159990448128 |
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| author | Al-Hadi, Al-Hadi Ahmed Hussain, S. Al-Yahyaee, K. Al-Jabri, H. |
| author_facet | Al-Hadi, Al-Hadi Ahmed Hussain, S. Al-Yahyaee, K. Al-Jabri, H. |
| author_sort | Al-Hadi, Al-Hadi Ahmed |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 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. |
| first_indexed | 2025-11-14T10:11:21Z |
| format | Journal Article |
| id | curtin-20.500.11937-58033 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T10:11:21Z |
| publishDate | 2017 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-580332017-11-20T08:58:08Z Risk Committees and Implied Cost of Equity Capital Al-Hadi, Al-Hadi Ahmed Hussain, S. Al-Yahyaee, K. Al-Jabri, H. © 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. 2017 Journal Article http://hdl.handle.net/20.500.11937/58033 10.1111/irfi.12147 Wiley-Blackwell Publishing Asia restricted |
| spellingShingle | Al-Hadi, Al-Hadi Ahmed Hussain, S. Al-Yahyaee, K. Al-Jabri, H. Risk Committees and Implied Cost of Equity Capital |
| title | Risk Committees and Implied Cost of Equity Capital |
| title_full | Risk Committees and Implied Cost of Equity Capital |
| title_fullStr | Risk Committees and Implied Cost of Equity Capital |
| title_full_unstemmed | Risk Committees and Implied Cost of Equity Capital |
| title_short | Risk Committees and Implied Cost of Equity Capital |
| title_sort | risk committees and implied cost of equity capital |
| url | http://hdl.handle.net/20.500.11937/58033 |