Corporate Governance and the Variability of Stock Returns: Evidence from New Zealand Companies
Auckland University of Technology
University of Southern Queensland
Alireza Tourani Rad
Auckland University of Technology - Faculty of Business & Law
January 15, 2010
Finance and Corporate Governance Conference 2010 Paper
In this paper, we document the beneficial impact of firm level corporate governance practices on the riskiness of firms’ stock returns. Using a self-constructed corporate governance index, we show that well-governed New Zealand firms experience lower levels of unsystematic risk, ceteris paribus. In particular, our results show that corporate governance components such as board composition, shareholder rights, and disclosure are associated with lower levels of unsystematic risk.
Number of Pages in PDF File: 18working papers series
Date posted: January 23, 2010 ; Last revised: April 8, 2010
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