The Moderating Role of Board Governance on the Relationship Between Managerial Overconfidence and Corporate Risk: Evidence from Emerging Markets
Journal Title: MSA-Management Sciences Journal (MSA-MSJ) - Year 2024, Vol 3, Issue 1
Abstract
The study investigated the effect of managerial overconfidence on corporation risks within the moderator role of board governance in Brazil, Egypt, India, Russia, Saudi Arabia, South Africa, and Turkey as emerging markets. The study sample consisted of 70 non-financial corporations during the period from 2013 to 2022. “Operational leverage," “Financial leverage," and “total leverage” were estimated as measurements of corporate risk. On the other hand, “the number of board members," "separation of the chairman of the board governance and the chief executive officer (CEO)," “the number of non-executive board members”, “the number of independent board members”, and “board meets” as measurements of board governance. Managerial overconfidence was the construct variable based on overinvestment in the corporation's total assets. According to cross-sectional data analysis, there is an increase in the adjusted R-squared of managerial overconfidence with all types of corporations' risk when adding board governance as the moderating variable. The study concluded that board governance as the moderating variable has contributed positively to explaining the corporation's risks within the managerial overconfidence of the CEO in emerging markets.
Authors and Affiliations
Osama Wagdi, Walid Abouzeid, Sharihan Mohamed Aly
Keywords
Related Articles
- EP ID EP727438
- DOI https://doi.org/10.21608/msamsj.2023.247683.1036
- Views 70
- Downloads 0
THE IMPACT OF CIRCULAR ECONOMY ON ECONOMIC DEVELOPMENT IN EGYPT
In response to the climate challenge, an alternative economic system is gaining popularity and interest: the circular economy. The main objectives of this research is to Change behavior and spread the awareness about cir...
TESTING PURCHASING POWER PARITY IN THE EUROZONE: A UNIT ROOT ANALYSIS
The Purchasing Power Parity (PPP) hypothesis is a central and important equilibrium condition in international finance and macroeconomics, proposing that nominal exchange rates and prices have a proportional relationship...
THE IMPACT OF NETFLIX’S CONTROVERSIAL AND ILLICIT CONTENT ON CHANGING USERS ’ ATTITUDES IN EGYPT
the paper aims to study the relationship between the impact of Netflix’s controversial and illicit content on changing users ’attitudes in Egypt. The researchers used the non-probability sampling technique. Based on surv...
The impact of Ukraine-Russia war on stock market volatility in G7: An empirical analysis using EGARCH model.
The current study investigates how the recent war between Ukraine and Russia impacted the volatility of G7 economies of the stock markets in major industrialized countries like United States (US), the United Kingdom (UK)...
Investigating Barriers to Supply Chain Resilience Strategies: A Monte-Carlo Simulation Approach
Nowadays, the term Resilience has acquired significance in supply chain management (SCM) research studies. So, the importance of resilience was driven to study the implementation of supply chain resilience (SCR) in Egypt...