Reducing risk in the emerging markets: Does enhancing corporate governance work?

Download

10.1016:j.brq.2018.01.002.pdf

Date

2018-4

Author

Sayari, Naz
Marcum, Bill

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

201
views

187
downloads

This study examines emerging market firms that adopt corporate governance standards similar to those in the US. The investigation highlights the impact governance standards may have on corporate risk taking, as measured by stock return volatility, under varying political and socioeconomic regimes. In a cross-sectional time-series setting, the analysis reveals that enhanced governance standards are associated with risk reductions among US domiciled firms, cross-listed American Depository Receipt companies (ADRs) and non-cross listed emerging market (EM) firms. The effect of these governance standards on risk taking, however, does not deviate considerably between cross-listed ADRs that are exposed to Securities and Exchange Commission (SEC) mandated regulations and non-cross-listed EM firms that are not subject to the same regulatory constraints. Also, in some respects, Chinese firms seem to exhibit corporate behavior that is contrary to that of the rest of the world. (C) 2018 Published by Elsevier Espana, S.L.U. on behalf of ACEDE.

Subject Keywords

Corporate governance, Risk, Emerging markets, American Depository Receipts (ADRs), Securities and Exchange Cornmiss (SEC) regulations

URI

https://hdl.handle.net/11511/52073

Journal

BRQ Business Research Quarterly

DOI

https://doi.org/10.1016/j.brq.2018.01.002

Collections

Department of Business Administration, Article

Suggestions

OpenMETU
Core

Does economic freedom help or hurt the emerging markets? the moderating effect of economic freedom on the corporate governance - financial performance relationship: a cross-country study Gün, Görkem; Sayarı Marcum, Naz.; Department of Business Administration (2019) This study investigates the relationship between corporate governance and financial performance of firms from distinct perspectives. First, the governance-performance relationship is examined by using three different types of financial performance indicators, which include accounting-based, valuation-based, and market-based performance indicators. Second, the study examines the governance-performance relationship in the emerging economies., while a sample of G-7 economies is also used to provide a compariso...
Do corporate governance practices affect CEO compensation? The moderating effect of economic freedom on corporate governance - CEO compensation relationship: an international study Akgün, Şahin.; Sayarı Marcum, Naz,; Department of Business Administration (2019) This study analyzes the association between corporate governance and CEO compensation adopting the “Agency Theory” and “Managerial Power Theory”. First, we examine the direct relationship between corporate governance indicators (such as board structure, employee representatives on board, CEO duality, board independence, institutional share ownership, and insider share ownership) and CEO compensation. Second, the study concentrates on the moderating effect of firm performance on corporate governance – CEO co...
Do US Corporate Governance Standards Effectively Discourage Risk in the Emerging Markets? Sayari, Naz; Marcum, Bill (2018-06-01) This study provides an examination of the effect of various corporate governance factors on the management of the risks inherent in business and the potential divergent impact of these factors on US firms and firms in emerging countries. In particular, the study scrutinises corporate governance and corporate risk-taking behaviour across different political and socioeconomic environments. In a cross-sectional time-series setting, two-step generalised least squares regression outcomes reveal that the impact o...
Gains from multinational competition for cross-border firm acquisition Koska, Onur A. (ZBW - German National Library of Economics, 2019) This study shows that when there is multinational competition for foreign acquisition, the strategic use of a consumer welfare argument in regulating foreign market entry leads to a preemptive foreign acquisition. Even under fierce competition, foreign acquisition will emerge as part of a non-cooperative equilibrium (although multinationals would have gained more had they been able to credibly commit to a cooperative equilibrium of independent foreign sales, either via greenfield investment or trade un...
Labor market institutions and industrial performance: an evolutionary study Kilicaslan, Yilmaz; Taymaz, Erol (2008-08-01) This study investigates the impact of labor market institutions on industrial performance from a Schumpeterian perspective. We suggest that labor market institutions play a very important role in the process of creative destruction, because they may create an environment that encourages and enforces innovation, and help to reallocate resources, most importantly labor, through swift elimination of weak performers. We specifically look at the effects of the quantity of labor market regulations and inter-indus...

Citation Formats

N. Sayari and B. Marcum, “Reducing risk in the emerging markets: Does enhancing corporate governance work?,” BRQ Business Research Quarterly, pp. 124–139, 2018, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/52073.