Risk Management Committee Characteristics and Cost of Debt

Authors

  • Wanlapa Thomya Khon Kaen University, Nong Khai Campus.
  • Uma Ritsri Khon Kaen University, Nong Khai Campus.
  • Keerati Nivoranusit Khon Kaen University, Nong Khai Campus.
  • Sakkarin Nonthapot Khon Kaen University, Nong Khai Campus.

Keywords:

Board Characteristics, Risk Management Committee, Cost of Debt

Abstract

Previous research suggested that the characteristics of the board members improve board’s ability for corporate governance, and impact stakeholder confidence. This research examined the relationship between the risk management committee characteristics and cost of debt. Using 240 firms-year from the Stock Exchange of Thailand during the years 2014-2016. The data were collected from the annual registration statements (Form 56-1) and the annual reports which showed on the SETSMART database. The boundary of such relationships was confirmed with multiple regression analysis. The findings indicated that a number of meetings is positively related to the cost of debt. On the other hand, the independence of the risk management committee, its size and accountancy or financial expertise did not have significant impacts on the cost of debt. The findings provided theoretical benefit reporting the value of creditor's perception on the risk management committee. Firms listed on the Stock Exchange of Thailand can use these results to determine characteristics of risk management committee for their firms.

Author Biographies

Wanlapa Thomya, Khon Kaen University, Nong Khai Campus.

Faculty of Business Administration

Uma Ritsri, Khon Kaen University, Nong Khai Campus.

Faculty of Business Administration

Keerati Nivoranusit, Khon Kaen University, Nong Khai Campus.

Faculty of Business Administration

Sakkarin Nonthapot, Khon Kaen University, Nong Khai Campus.

Indo-China Country International Trade and Economic Research Sector

Downloads

Published

2020-03-19

How to Cite

Thomya, W., Ritsri, U., Nivoranusit, K., & Nonthapot, S. (2020). Risk Management Committee Characteristics and Cost of Debt. Creative Business and Sustainability Journal, 42(1), 1–20. Retrieved from https://so01.tci-thaijo.org/index.php/CBSReview/article/view/240418

Issue

Vol. 42 No. 1: ISSUE 163, JANUARY - MARCH 2020

Section

Research Articles

License

Opinions and discussions in papers published by the Creative Business and Sustainability Journal (CBSJ) are deemed as personal opinions and the responsibility of the writers. They are not the opinions or responsibility of the Chulalongkorn Business School of Chulalongkorn University.

Papers, content, information etc. appearing in the Journal are deemed to be the copyright property of the Chulalongkorn Business School of Chulalongkorn University. Anybody or any organization that wishes to publish any part of them or use them in any way must obtain written permission from the Chulalongkorn Business School, Chulalongkorn University.