The Corporate Risk and Corporate Governance

• Main Authors: Hsiang-Sheng Liu, 劉向晟
• Other Authors: Jin-Ping Lee
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/4ar4b9

碩士 === 逢甲大學 === 財務金融學所 === 100 === Prior studies mostly focus on the corporate performance and pay little attention to the relationship between corporate governance and corporate risk. This study aims to examine the effect of corporate governance on the corporate risk from different perspectives. We divided corporate governance into board composition and ownership structure. The risk examined in the study includes the total risk and idiosyncratic risk. We use the standard deviations of return on assets, stock return and Tobin''s Q as proxies for total risk. We also follow the direct decomposition method provided by Xu and Malkiel (2003) to estimate the corporate idiosyncratic risk. Finally, we employed the panel data regression to examine the relationship between corporate governance and corporate risk. The result shows that board size, board independent, and CEO holding have a negative relationship with total risk and idiosyncratic risk. Board duality has positive relationship with corporate risk. However, not all corporate governance variables have a significant relationship with both risk measures variable. The institutional holding not only has impact on corporate risk behaviors, but will also affect the risk measures differently.