Corporate Governance and its Impact on Firm Risk
Journal Title: International Journal of Management, Economics and Social Sciences - Year 2013, Vol 2, Issue 2
Abstract
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.
Authors and Affiliations
Abdullah Alam, Syed Zulfiqar Ali Shah
Keywords
Related Articles
- EP ID EP125542
- DOI -
- Views 136
- Downloads 0
"Wall Street Vs Main Street": Impact of Corporations on Our Lives
So many books have been written on corporations but no one seriously thought about the impact on the poor, that is why the seriousness of the issue kept on growing, but the most alarming situation is, business schools an...
Promoting Functional Outcome of Stroke Patients: The Effect of Regulatory Focus, Therapy Frequency and Message Framing
The purpose of this study was to find out how stroke patients' chronic regulatory focus interacted with message framing had impact on the therapy frequency and functional outcome. A one factor (chronic regulatory focus)...
Banking Capital and Risk-taking Adjustment under Capital Regulation: The Role of Financial Freedom, Concentration and Governance Control
This study analyzes the relevance of capital adjustment and risk-taking adjustment during the financial tsunami when the banking industry was under capital regulation. Using the panel data of commercial banks in the USA...
The Communication Effects of Audience Situation and Message Framing on Smoking Cessation
This study examined the communication effects of smoking cessation by using message framing (positive messages/negative messages) and audience situation (smoker/nonsmoker and high/low self-efficacy). The study used 207 v...