Corporate Governance and Its Impact on Firm Risk

Alam, Abdullah; Shah, Syed Zulfiqar Ali

doi:10.2139/ssrn.2280479

Cited by 18 publications

(22 citation statements)

References 31 publications

(8 reference statements)

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“…Based JIABR 11,9 on this result, H1 and H3 are rejected. This result is consistent with the findings of Akbar et al (2017), Alam and Ali Shah (2013) and McNulty et al (2013). Tables 4-6 also reports the coefficients of board independence, which are found to be statistically significant at 1% and 5% in case of Malaysian and Pakistani Islamic funds, respectively.…”

Section: Dynamic Panel Generalized Methods Of Moment Resultssupporting

confidence: 88%

Corporate governance mechanism and the risk exposure of Islamic mutual funds: evidence from Islamic countries

Naveed

Abdin

2020

JIABR

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Purpose This study aims to analyze the impact of corporate governance characteristics on the risk exposure of Islamic mutual funds prevailing in different Islamic countries (Pakistan and Malaysia). Design/methodology/approach This study used dynamic panel regression model for analysis and estimated the results using system generalized method of moment technique. A sample of 185 Islamic funds is used in the current research, which is selected using judgmental sampling. The data span of this study consists nine years from 2009 to 2017. Findings The results showed that the corporate governance characteristics such as board independence, directors and institutional ownership and overall governance quality are helpful in reducing the total and downside risk exposure of Islamic mutual funds. The findings also suggest that board size and Chief Extractive officer duality play no role in mitigating the risk of Islamic funds prevailing in both countries. Practical implications This study has implication for industry practitioners and fund managers. This study showed that the corporate governance characteristics are helpful in reducing the risk exposure of Islamic mutual funds. Therefore, this study provides input to the investment firms to improve the quality of corporate governance for lowering the risk exposure of mutual funds. Originality value To the best of the authors’ knowledge, this study is the first attempt to analyze the impact of corporate governance characteristics on the risk exposure of Islamic mutual funds and hence provides significant contribution in the literature of mutual funds.

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Section: Dynamic Panel Generalized Methods Of Moment Resultssupporting

confidence: 88%

Corporate governance mechanism and the risk exposure of Islamic mutual funds: evidence from Islamic countries

Naveed

Abdin

2020

JIABR

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“…Where, R Square, the coefficient of determination equal to (0.456), which means that about (45.6%) of the variation in liquidity risks. This result is consistent with those found in prior research (Alam & Ali Shah, 2013;Eling & Marek, 2014)While different with (Adams & Mehran, 2003;Laeven & Levine, 2009). The hypothesis 3 also reveals that the presence of the effect of independent variables aggregated is significant.…”

Section: Regression Analysis and Hypothesis Resultssupporting

confidence: 92%

The Impact of Internal Corporate Governance Mechanisms on the Unsystematic Risks at Jordanian Commercial Banks Listed on the Amman Stock Exchange

Alelfartas¹

2019

RJFA

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The aim of this research is to investigate the relationship between Internal corporate governance mechanisms and on the unsystematic risks using data from 13 commercial banks listed on the Amman Stock Exchange during the period 2009-2016. Panel data was utilized and the data gathered from 104 annual reports from13 commercial banks in Amman, which analyzed using descriptive statistics, correlation, and regression. Seven main corporate governance variables were analyzed in terms namely: (Board size, Board Independence, CEO /Chairman Separation, Audit Committee Independence, Ownership concentration, Institutional Ownership, and Foreign Ownership) their relative of the unsystematic risk (credit risk, liquidity risk, and operational risk). furthermore, bank size and debt Ratio were used as a control variable. Based on the results of the study, it has been observed that Internal corporate governance mechanisms variables have a significant effect on the unsystematic risk.

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“…First, following (Abdullah et al, 2016; Martín‐Ugedo & Minguez‐Vera, 2014) a family firm is defined as if firm having 20% or more equity ownership lies with the family. Second, if firm has two or more than two board members from the same family thereby influencing the board decisions (Alam & Shah, 2013), although they may not have the 20% equity ownership according to shareholding pattern planted in the annual reports is also considered as family firm. We can identify family members by using their last name as criteria to identify by following (Chu, 2009).…”

Section: Methodsmentioning

confidence: 99%

Read between the lines: Board gender diversity, family ownership, and risk‐taking in Indian high‐tech firms

2019

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This article examines the effect of board gender diversity on firm risk‐taking level. Drawing on the contingency framework, we contend that the influence of women executives on firm risk‐taking depends largely on the organizational context of the firm such as the industry in which it operates. To investigate this proposition, we compare the influence of board gender diversity on firm risk‐taking level in Indian high‐tech and in non‐high‐tech sectors. Our findings indicate that female executives operating in high‐tech sectors take more risk than their counterparts female executives who operate in non‐high sector. Interestingly, our analysis also reveals that family ownership negatively moderates the impact of female executives on risk‐taking in high‐tech firms. In additional analysis, we find that female executives exert a positive impact on firm performance only in high‐tech sector. This suggests that the influence of female executives on firm outcomes is not always straightforward.

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Corporate Governance and Its Impact on Firm Risk

Cited by 18 publications

References 31 publications

Corporate governance mechanism and the risk exposure of Islamic mutual funds: evidence from Islamic countries

Corporate governance mechanism and the risk exposure of Islamic mutual funds: evidence from Islamic countries

The Impact of Internal Corporate Governance Mechanisms on the Unsystematic Risks at Jordanian Commercial Banks Listed on the Amman Stock Exchange

Read between the lines: Board gender diversity, family ownership, and risk‐taking in Indian high‐tech firms

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