Risk Management Committee Characteristics and Cost of Debt
Keywords:
Board Characteristics, Risk Management Committee, Cost of DebtAbstract
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.
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