Table 2.

Definition of the Risk governance effectiveness index (RGDEX) variable.

Variables	Calculation
RGEI = BOSDEX + BIDDEX + ACSDEX + ACIDEX + FAEDEX + AMFDEX + FACDEX + SRCDEX + BIG4DEX
1. BOSDEX	“Value is one if the value of board size is lower than the median board size of the data in year t, zero otherwise”
2. BIDDEX	“Value is one if the proportion of independent directors on the board is higher than median percentage of independent directors of the data in year t, zero otherwise”
3. ACSDEX	“Value is one if the value of audit committee size is lower than the median audit committee size of the data in year t, zero otherwise”.
4. ACIDEX	“Value is one if the proportion of independent directors on the audit committee is higher than median proportion of independent directors of the data in year t, zero otherwise”
5. FAMDEX	“Value is one if the proportion of finance and accounting member on the audit committee is higher than median proportion of independent member of the data in year t, zero otherwise”
6. AMFDEX	“Value is one if the number of audit committee meeting is higher than median meeting of the data in year t, zero otherwise”
7. FACDEX	“Value is one if the proportion of female member on the audit committee is greater than median proportion of independent member of the data in year t, zero otherwise”
8. SRCDEX	“Value is one if the bank has risk committee in year t, zero otherwise”
9. BIG4DEX	“Value is one if the bank use Big 4 audit service in year t, zero otherwise”