Teodósio, JoãoMadaleno, MaraVieira, Elisabete2022-08-102022-08-102022Teodósio, 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.v24i1.41561806-48921983-0807http://hdl.handle.net/10400.15/4053Purpose 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.engDirectorsBoardVolatilityStock returnsIndependencejournal article10.7819/rbgn.v24i1.4156