Journal of Business and Management

Journal of Business and Management

ISSN: 2291-1995 (Print)    ISSN: 2291-2002 (Online)

Volume 4 (2015), No. 2, Pages 1-18

DOI: 10.12735/jbm.v4i2p01

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Do Board and Audit Committee Characteristics Affect Firm’s Cost of Equity Capital?

Hanen Khemakhem1  Ahmed Naciri1 

1Department of accounting sciences, Business School, University of Quebec in Montreal, Canada

URL: https://doi.org/10.12735/jbm.v4i2p01Citation: 1 (Details)

To Cite this Article     Article Views: 868     Downloads: 468  Since deposited on 2015-05-25

Abstract

This paper examines the association between board and audit committee characteristics and cost of equity capital. Using a sample of TSX-S&P 300 firms, our analysis shows that overall audit committee characteristics are negatively associated to the cost of equity capital. The size of the audit committee and the non-duality of the Chairman of the board are, however, positively related to the cost of equity capital. The results also confirm that being listed on the American stock exchange affects the relationship between non-duality of the Chairman of the board and cost of equity capital. However, being listed in the US capital market doesn’t change the relationship between audit committee features and the cost of equity capital and this can be explained by the fact that audit committee regulatory requirements are similar and mandatory in both Canadian and American capital markets.

JEL Classifications: G30, K40

Keywords: board of directors, audit committee, cost of equity capital, corporate governance

To Cite this Article: Khemakhem, H., & Naciri, A. (2015). Do board and audit committee characteristics affect firm’s cost of equity capital? Journal of Business and Management, 4(2), 1-18. https://doi.org/10.12735/jbm.v4i2p01

Copyright © Hanen Khemakhem & Ahmed Naciri

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This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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Do Board and Audit Committee Characteristics Affect Firm’s Cost of Equity Capital?
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