Influence of a Board-Level Risk Committee on Value

This study finds a negative relation between the use of a board-level risk committee and insurer value. The data are annual observations from 68 publicly traded insurers over years 2016 to 2003. The study examines the impact on value because the arguments favoring the use of a board-level risk committee mostly frame its use in terms of the strategic benefits it confers to the firm. The finding of this study holds under different estimation models, across different sub-periods and with alternative variables. The finding of the study is consistent with available literature on firm risk governance and corporate risk management in well-functioning markets