Working paper 05-03 May 2005 Risk Management and Corporate Governance : The Importance of Independence and Financial Knowledge for the Board and the Audit Committee

@inproceedings{Dionne2005WorkingP0,
  title={Working paper 05-03 May 2005 Risk Management and Corporate Governance : The Importance of Independence and Financial Knowledge for the Board and the Audit Committee},
  author={Georges Dionne and Thouraya Triki},
  year={2005}
}
The new NYSE rules for corporate governance require the audit committee to discuss and review the firm’s risk assessment and hedging strategies. They also put additional requirements for the composition and the financial knowledge of the directors sitting on the board and on the audit committee. In this paper, we investigate whether these new rules as well as those set by the Sarbanes Oxley act lead to hedging decisions that are of more benefit to shareholders. We construct a novel hand… CONTINUE READING