- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
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.
Limitations and future research
The method employed in this paper can provide direction for future research in the emerging markets on the governancerisk relationship; yet, our investigation comprises a number of limitations. For example, because the time-series of EM data are incomplete, we could not investigate the effect of governance on corporate risk prior to the adoption of the SEC (2003) guidelines; these guidelines may have had a residual, positive impact on corporate governance practices among firms in the emerging markets. It could be fruitfulto examine governance practices in the emerging markets during the early 2000s to verify a movement toward governance best practices during the years 2008 to 2014 --- the relevant time frame of this paper.
Another data limitation relates to a lack of country specific information in the Bloomberg Database. Because data are either missing or unavailable, Chile, Columbia, India, Malaysia, Panama, Peru, the Philippines, Poland and Thailand were omitted from the ADR sample. Moreover, four of the 22 best performing EM countries as ranked by Bloomberg (i.e., the Czech Republic, Egypt, Latvia and Morocco) could not be included in the relevant sample, either because of a stock de-listing from the US market or because reliable, contiguous governance data were not available. Consequently, researchers might discover locally available governance data on these countries in an effort to extend the scope of our analysis.