Revisiting corporate governance and financial risk-taking

Alzayed, Noora, Eskandari, Rasol, Eshraghi, Arman ORCID: https://orcid.org/0000-0002-7406-1725 and Yazdifar, Hassan 2024. Revisiting corporate governance and financial risk-taking. International Journal of Finance and Economics 29 (4) , pp. 4787-4812. 10.1002/ijfe.2896

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Abstract

Corporate governance attributes have varying effects on risk taking when variables are examined separately. We study the effects of a large range of corporate governance attributes on risk taking using a comprehensive US sample. Our findings confirm that although there are certain characteristics that drive this positive effect such as compensation structure, there are those which have the opposite effect such as board-level attributes. Our paper contributes to the broader literature on the relationship between corporate governance and risk in financial institutions, which are often overlooked in traditional studies. We shed light on the importance of studying corporate governance at a granular level rather than using a single index. The findings offer insights to regulators in determining suitable corporate governance frameworks to ensure the protection of investors rights in financial institutions.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Wiley
ISSN:	1076-9307
Date of First Compliant Deposit:	29 September 2023
Date of Acceptance:	28 September 2023
Last Modified:	05 Nov 2024 13:31
URI:	https://orca.cardiff.ac.uk/id/eprint/162852

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