The effects of country governance quality on the stability of equity markets

IF 1.8 4区经济学 Q2 BUSINESS, FINANCE

International Review of Finance Pub Date : 2025-07-18 DOI:10.1111/irfi.70033

David Y. Aharon, Ahmed S. Baig, R. Jared Delisle

引用次数: 0

Abstract

We examine the impact of governance quality on the volatility of equity markets. Using a broad dataset of ADRs, we provide evidence that high quality governance in the home country is associated with reduced stock market volatility. The relationship is robust across various governance quality dimensions. To address endogeneity concerns, we examine the stability of Brazilian ADRs in response to a corruption event. The inverse governance-volatility relationship is clearly demonstrated by this event. The results support the conjecture that country governance quality is an important prerequisite for the stability of equity markets.

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国家治理质量对股票市场稳定性的影响

我们研究了治理质量对股票市场波动性的影响。使用广泛的adr数据集，我们提供证据表明，母国的高质量治理与降低股市波动有关。这种关系在各个治理质量维度上都是健壮的。为了解决内生性问题，我们考察了巴西adr在应对腐败事件时的稳定性。这一事件清楚地证明了治理与波动性的逆关系。研究结果支持了国家治理质量是股票市场稳定的重要前提的假设。

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

International Review of Finance BUSINESS, FINANCE-

CiteScore

3.30

自引率

5.90%

发文量

期刊介绍： The International Review of Finance (IRF) publishes high-quality research on all aspects of financial economics, including traditional areas such as asset pricing, corporate finance, market microstructure, financial intermediation and regulation, financial econometrics, financial engineering and risk management, as well as new areas such as markets and institutions of emerging market economies, especially those in the Asia-Pacific region. In addition, the Letters Section in IRF is a premium outlet of letter-length research in all fields of finance. The length of the articles in the Letters Section is limited to a maximum of eight journal pages.