Abdulateif A. Almulhim, Abdullah A. Aljughaiman, Abdulaziz S. Al Naim, Abdulmohsen K. Alosaimi
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Using a sample of 455 observations representing the financial corporations listed on the TASI for the period from 2010 to 2022, we found that risk committees’ existence, risk committee independence, and financial expertise have negative and significant associations with agency costs, but a positive influence on financial performance. However, risk committee size and busyness are positively related to agency costs and adversely associated with firms’ financial performance. Furthermore, we showed that agency costs influence banks’ financial performance negatively, yet risk committees oversee this risk and enhance banks’ financial performance. The findings of this study have implications for financial firms, policymakers, and regulators. 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引用次数: 0
摘要
本研究旨在探讨风险委员会的特征对代理成本和财务绩效的影响,以及风险委员会的属性是否会缓和在沙特股票市场(TASI)上市的金融公司的代理成本和财务绩效之间的关联。我们主要关注风险委员会的六个属性(风险委员会的存在、规模、独立性、会议、财务专业知识和繁忙程度)及其对代理成本和财务绩效的影响。本研究采用普通最小二乘法(OLS)和广义矩方法(GMM)模型来探讨这些关系。通过对 2010 年至 2022 年期间在 TASI 上市的金融企业的 455 个观察样本进行分析,我们发现风险委员会的存在、风险委员会的独立性和财务专业知识与代理成本有显著的负相关关系,但对财务绩效有积极影响。然而,风险委员会的规模和繁忙程度与代理成本正相关,与公司财务绩效负相关。此外,我们还发现,代理成本对银行的财务绩效有负面影响,但风险委员会却能监督这种风险并提高银行的财务绩效。本研究的结论对金融公司、政策制定者和监管者都有启示意义。除了通过在一个发展中的中东经济体中调查一个相对未被探索的课题来做出经验上的贡献外,本分析还为优化风险委员会的特征和结构以改善沙特阿拉伯框架内的金融监管提供了宝贵的见解。与发达国家的研究相比,这一领域的研究相对有限。
Effects of Risk Committee on Agency Costs and Financial Performance
This study aimed to explore the influence of risk committee characteristics on agency costs and financial performance as well as investigate whether the attributes of a risk committee moderate the association between the agency costs and financial performance of financial firms listed in the Saudi Stock Market (TASI). We primarily concentrate on six attributes of risk committees (risk committee existence, size, independence, meetings, financial expertise, and busyness) and their impact on agency costs and financial performance. This study employed the ordinary least squares (OLS) and generalized methods of moments (GMM) models to explore these relationships. Using a sample of 455 observations representing the financial corporations listed on the TASI for the period from 2010 to 2022, we found that risk committees’ existence, risk committee independence, and financial expertise have negative and significant associations with agency costs, but a positive influence on financial performance. However, risk committee size and busyness are positively related to agency costs and adversely associated with firms’ financial performance. Furthermore, we showed that agency costs influence banks’ financial performance negatively, yet risk committees oversee this risk and enhance banks’ financial performance. The findings of this study have implications for financial firms, policymakers, and regulators. Beyond making empirical contributions by investigating a relatively unexplored topic in a developing Middle Eastern economy, this analysis provides valuable insights into optimizing risk committee characteristics and structures to improve financial monitoring within the framework of Saudi Arabia. This area of research has been relatively limited compared to studies conducted in developed countries.