The Effect of Business Risk Management on Financing Cost by Considering the Managers' Ability

Objectives: The benefits of risk management can be defined as increasing efficiency and effectiveness, facilitating and streamlining, reducing costs, speeding up and time reducing of operations, improving communication, ensuring control over the system, identifying threats related to the project with the system, and helping to achieve goals on time. Therefore, according to the necessity of implementing comprehensive risk management in all firms, the current research is dedicated to this issue, considering the problems in financing firms in the competitive market. This study investigates the effect of business risk management on financing costs by considering managers' abilities. Design/methodology/approach: The statistical population of the research is the firms listed on the Tehran Stock Exchange from 2013 to 2022. Using the systematic elimination screening method, the 132 firms have been considered as the final sample of the research. Results: The results showed that risk management has an inverse effect on the cost of financing and moderates the managers' ability in this relationship. Innovation: The present research can provide new evidence for the development of the literature on the subject. The results of this research can also help users of financial information make better decisions.