Corporate governance and risk-taking: Evidence from Japanese firms

Nguyên, Pascal

doi:10.1016/j.pacfin.2010.12.002

Cited by 158 publications

(120 citation statements)

References 53 publications

Supporting

Mentioning

100

Contrasting

Unclassified

Order By: Relevance

“…The sample of 106 firms was selected keeping the mind the following criteria as adopted by Nguyen (2011) Accounting for the firms with negative equity and/or instances of missing or incomplete data, the final sample was reduced to 106 firms. Table 3 presents the participation of each sector in the reduced and the selected sample for this study.…”

Section: Board Size and Firm Riskmentioning

confidence: 99%

See 1 more Smart Citation

Corporate Governance and Its Impact on Firm Risk

Alam

Shah

2013

SSRN Journal

View full text Add to dashboard Cite

The aim of this research is to explore the relationship of corporate governance with firm risk. This study establishes a link between corporate governance variables and firm risk for a sample of 106 Pakistani firms over a time of six years (2005-2010). Based on the estimation results, family control and bank control have negative impact on the firm risk whereas ownership structure and chairman/CEO duality posit positive relationship with risk. This provides a direction for firms to introduce more non-family control to the board of directors and not allow banks to have majority shareholding in their stocks. Also, directors should be asked to have a reasonable ownership in the stocks of the firm so that they can decide in the best interest of the firm and for the increase of their stock value. Chief executive should also hold the chair in order to have unity of command and a better decision-making influence.

show abstract

Section: Board Size and Firm Riskmentioning

confidence: 99%

“…These risks are generally related to the returns on the firm' s stocks (Bloom and Milkovich, 1998). However, firm-specific risks are also directly related to the performance of the firm (Nguyen, 2011). Firms that engage in risky projects are expected to yield better returns that those which lack the appetite to take risks.…”

mentioning

confidence: 99%

Corporate Governance and Its Impact on Firm Risk

Alam

Shah

2013

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…In fact, it has been extensively applied to stock returns to produce estimates of return volatility and its systematic and idiosyncratic components. For example, Nguyen (2011) examines the effect of family and bank control on the risk-taking of Japanese firms using relative idiosyncratic risk as the measure of risk taking. Likewise, Konishi and Yasuda (2004) investigate the role of regulation (capital adequacy requirements) on the risk-taking behavior of Japanese banks.…”

Section: Measurement and Determinants Of Riskmentioning

confidence: 99%

The impact of foreign investors on the risk-taking of Japanese firms

Nguyên¹

2012

Journal of the Japanese and International Economies

Self Cite

View full text Add to dashboard Cite

“…Thus, the family firms might avoid taking risks due to their goal of passing firms on the next generation (Anderson et al 2003). The results of the research conducted by Nguyen's (2011) also provide an economic rationale for the higher (and lower) performances of the family-controlled (bank-controlled firms, respectively). The results explain the higher performance of the firms with concentrated ownership by relating their governance structures to risk-taking.…”

Section: Prior Studies and Hypothesis Development Firm's Product Lifementioning

confidence: 92%