Loading...
Publication
Corporate governance effects on market volatility:empirical evidence from portuguese listed firms
| Name: | Description: | Size: | Format: | |
|---|---|---|---|---|
| 459.79 KB | Adobe PDF |
Advisor(s)
Abstract(s)
Purpose
This study examines the relationship between internal corporate governance mechanisms and firm risk-taking.
Design/methodology/approach
This research comprises a sample of 38 non-financial Portuguese firms listed on Euronext Lisbon, over the period from 2007 to 2017. To test the formulated hypotheses we use panel-corrected standard errors (PCSE) models.
Findings
Our results provide evidence that, in the Portuguese context, bigger and younger firms, with larger boards of directors and a greater number of independent directors, present higher levels of systematic risk. Our results are consistent across the robustness checks.
Originality/value
To the best of our knowledge, this is the first time that a robust incremental effect of board size on firm systematic risk is reported. This result contradicts the prevailing literature and opens up a new debate, from a financial markets viewpoint, on the benefits of larger boards of directors in terms of mitigating market volatility.
Description
Keywords
Directors Board Volatility Stock returns Independence
Pedagogical Context
Citation
Teodósio, J., Madaleno, M. & Vieira, E. (2022). Corporate governance effects on market volatility:empirical evidence from portuguese listed firms. Revista Brasileira de Gestão de Negócios, 24 (1), 159-174. doi:10.7819/rbgn.v24i1.4156
Publisher
Fundação Escola de Comércio Álvares Penteado