Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | Revista Brasileira de Gestão de Negócios (Online) |
Texto Completo: | https://rbgn.fecap.br/RBGN/article/view/4156 |
Resumo: | 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 listed firms on Euronext Lisbon, over the period 2007-2017. To test the formulated hypotheses we use Panel Corrected Standard Errors (PCSE) models. Findings – Our results provide evidence that, in the Portuguese context, bigger young firms, with larger boards of directors and with a greater degree of independent directors, present higher levels of systematic risk. Our results are consistent across robustness checks. Originality/value – To the best of our knowledge, this is the first time that is reported a robust incremental effect of the board size on firm systematic risk. This result contradicts the prevailing literature and opens a new debate, from the financial markets’ points of view, on the benefits of larger boards of directors in the mitigation of market volatility. Keywords – directors; board; volatility; stock returns; independence |
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Revista Brasileira de Gestão de Negócios (Online) |
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Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firmsPurpose – 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 listed firms on Euronext Lisbon, over the period 2007-2017. To test the formulated hypotheses we use Panel Corrected Standard Errors (PCSE) models. Findings – Our results provide evidence that, in the Portuguese context, bigger young firms, with larger boards of directors and with a greater degree of independent directors, present higher levels of systematic risk. Our results are consistent across robustness checks. Originality/value – To the best of our knowledge, this is the first time that is reported a robust incremental effect of the board size on firm systematic risk. This result contradicts the prevailing literature and opens a new debate, from the financial markets’ points of view, on the benefits of larger boards of directors in the mitigation of market volatility. Keywords – directors; board; volatility; stock returns; independenceFECAP2022-04-08info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionAvaliado por paresapplication/pdfapplication/pdfhttps://rbgn.fecap.br/RBGN/article/view/4156Review of Business Management; Vol. 24 No. 1 (2022)RBGN Revista Brasileira de Gestão de Negócios; Vol. 24 Núm. 1 (2022)RBGN - Revista Brasileira de Gestão de Negócios; v. 24 n. 1 (2022)1983-08071806-4892reponame:Revista Brasileira de Gestão de Negócios (Online)instname:Fundação Escola de Comércio Álvares Penteado (FECAP)instacron:FECAPengporhttps://rbgn.fecap.br/RBGN/article/view/4156/1808https://rbgn.fecap.br/RBGN/article/view/4156/1809Teodósio, JoãoMadaleno, MaraVieira, Elisabete info:eu-repo/semantics/openAccess2022-06-30T19:59:21Zoai:ojs.emnuvens.com.br:article/4156Revistahttp://rbgn.fecap.br/RBGN/indexhttps://rbgn.fecap.br/RBGN/oai||jmauricio@fecap.br1983-08071806-4892opendoar:2022-06-30T19:59:21Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP)false |
dc.title.none.fl_str_mv |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms |
title |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms |
spellingShingle |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms Teodósio, João |
title_short |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms |
title_full |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms |
title_fullStr |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms |
title_full_unstemmed |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms |
title_sort |
Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms |
author |
Teodósio, João |
author_facet |
Teodósio, João Madaleno, Mara Vieira, Elisabete |
author_role |
author |
author2 |
Madaleno, Mara Vieira, Elisabete |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Teodósio, João Madaleno, Mara Vieira, Elisabete |
description |
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 listed firms on Euronext Lisbon, over the period 2007-2017. To test the formulated hypotheses we use Panel Corrected Standard Errors (PCSE) models. Findings – Our results provide evidence that, in the Portuguese context, bigger young firms, with larger boards of directors and with a greater degree of independent directors, present higher levels of systematic risk. Our results are consistent across robustness checks. Originality/value – To the best of our knowledge, this is the first time that is reported a robust incremental effect of the board size on firm systematic risk. This result contradicts the prevailing literature and opens a new debate, from the financial markets’ points of view, on the benefits of larger boards of directors in the mitigation of market volatility. Keywords – directors; board; volatility; stock returns; independence |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-04-08 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Avaliado por pares |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/4156 |
url |
https://rbgn.fecap.br/RBGN/article/view/4156 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
https://rbgn.fecap.br/RBGN/article/view/4156/1808 https://rbgn.fecap.br/RBGN/article/view/4156/1809 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf |
dc.publisher.none.fl_str_mv |
FECAP |
publisher.none.fl_str_mv |
FECAP |
dc.source.none.fl_str_mv |
Review of Business Management; Vol. 24 No. 1 (2022) RBGN Revista Brasileira de Gestão de Negócios; Vol. 24 Núm. 1 (2022) RBGN - Revista Brasileira de Gestão de Negócios; v. 24 n. 1 (2022) 1983-0807 1806-4892 reponame:Revista Brasileira de Gestão de Negócios (Online) instname:Fundação Escola de Comércio Álvares Penteado (FECAP) instacron:FECAP |
instname_str |
Fundação Escola de Comércio Álvares Penteado (FECAP) |
instacron_str |
FECAP |
institution |
FECAP |
reponame_str |
Revista Brasileira de Gestão de Negócios (Online) |
collection |
Revista Brasileira de Gestão de Negócios (Online) |
repository.name.fl_str_mv |
Revista Brasileira de Gestão de Negócios (Online) - Fundação Escola de Comércio Álvares Penteado (FECAP) |
repository.mail.fl_str_mv |
||jmauricio@fecap.br |
_version_ |
1798942370908078080 |