Does good board governance reduce idiosyncratic risk in emerging markets? Evidence from China

被引：10

作者：

Fareed, Zeeshan ^{[1
]}

Wang, Nianyong ^{[2
]}

Shahzad, Farrukh ^{[3
]}

Shah, Syed Ghulam Meran ^{[4
]}

Iqbal, Najaf ^{[5
,7
]}

Zulfiqar, Bushra ^{[6
]}

机构：

[1] Huzhou Univ, Sch Econ & Management, Huzhou, Zhejiang, Peoples R China

[2] Zhongnan Univ Econ & Law, Sch Finance, Wuhan, Hubei, Peoples R China

[3] Guangdong Univ Petrochem Technol, Sch Econ & Management, Maoming, Guangdong, Peoples R China

[4] Southwestern Univ Finance & Econ, Sch Business Adm, Chengdu, Peoples R China

[5] Anhui Univ Finance & Econ, Sch Finance, Bengbu, Peoples R China

[6] Southwestern Univ Finance & Econ, Sch Econ, Chengdu, Peoples R China

[7] Univ Aberdeen, Afr Asia Ctr Sustainabil, Business Sch, Aberdeen, Scotland

来源：

JOURNAL OF MULTINATIONAL FINANCIAL MANAGEMENT | 2022年 / 65卷

关键词：

Board attributes; Board governance index (BGI); Idiosyncratic risk; Total risk; STOCK RETURN VOLATILITY; CORPORATE GOVERNANCE; CEO POWER; OWNERSHIP CONCENTRATION; FINANCIAL PERFORMANCE; FOREIGN OWNERSHIP; FIRM PERFORMANCE; SIZE; IDENTIFIABILITY; SPECIFICATION;

D O I：

10.1016/j.mulfin.2022.100749

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

This study examines the impact of board governance on idiosyncratic risk in the context of Chinese listed firms. Contrary to previous evidence from developed markets, we show that good board governance significantly reduces idiosyncratic risk in China. We also show that non -state-owned and foreign firms are relatively more capable of minimizing idiosyncratic risk than are state-owned and private firms. The empirical results obtained from CAPM are not sensitive to alternative proxies of idiosyncratic risk. We also find a significantly stronger impact of board governance on idiosyncratic risk after controlling for endogeneity and performing a sensitivity analysis. Our findings provide valuable insights into firm risk-taking behaviour in emerging markets.

引用

页数：20