Role of corporate governance in moderating the risk-return paradox: Cross country evidence

IF 2.9 3区 管理学 Q2 BUSINESS, FINANCE
Ranjan DasGupta , Soumya G. Deb
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引用次数: 0

Abstract

This paper investigates the possible nexus between the 'risk-return paradox' and corporate-governance of firms in a cross-country cross-cultural setup. We use corporate governance as well as accounting risk and return data for a large dataset of 45,322 firm-years from 27 countries and show that the firm-level risk-return association may be a non-linear one, contingent on the firm performance. Firms which are below the industry median in terms of operating performance, exhibit an inverse relation in line with Bowman's (1980) ‘paradox' while those above-median exhibit a positive risk-return association. Further, we establish empirically that such risk-return association could be due to the rent-seeking actions of managers and that strong corporate-governance in a firm substantially moderates and reverses these effects. Our results are robust and hold strong through a number of robustness tests.

公司治理在调节风险收益悖论中的作用:跨国证据
本文研究了跨国跨文化背景下“风险-收益悖论”与公司治理之间可能存在的联系。我们对来自27个国家的45,322个公司年的大型数据集使用了公司治理以及会计风险和回报数据,并表明公司层面的风险回报关联可能是非线性的,取决于公司绩效。在经营业绩方面低于行业中位数的公司表现出与Bowman(1980)“悖论”一致的反比关系,而高于中位数的公司表现出正的风险回报关联。此外,我们通过经验证明,这种风险回报关联可能是由于管理者的寻租行为造成的,而公司中强大的公司治理实质上缓和并逆转了这些影响。通过一系列稳健性测试,我们的结果是稳健性的。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
6.00
自引率
3.00%
发文量
24
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