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Predicting Market Sensitivity: The Role of Board Structure in the Beta Coefficient of Software Companies on the Nasdaq Global Select Market

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  • Ahmet Akusta

    (Konya Technical University)

Abstract

This study examines how board structure influences market sensitivity, measured by beta, in software companies listed on the nasdaq global select market. Focusing on governance metrics such as board size, meeting frequency, and executive compensation, the research analyzes their impact on beta from 2014 to 2023. Machine learning models, including decision trees and bagging classifiers, evaluate this relationship, using accuracy, precision, recall, and f1 scores. Findings suggest that governance factors significantly affect market sensitivity, offering valuable insights for corporate leaders and investors managing firm risk in volatile sectors like software.

Suggested Citation

  • Ahmet Akusta, 2025. "Predicting Market Sensitivity: The Role of Board Structure in the Beta Coefficient of Software Companies on the Nasdaq Global Select Market," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 40(123), pages 14-34, April.
    • Handle: RePEc:acc:malfin:v:40:y:2025:i:123:p:14-34
    DOI: https://doi.org/10.33203/mfy.1596994
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    References listed on IDEAS

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    1. Hardjo Koerniadi & Chandrasekhar Krishnamurti & Alireza Tourani-Rad, 2014. "Corporate governance and risk-taking in New Zealand," Australian Journal of Management, Australian School of Business, vol. 39(2), pages 227-245, May.
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    More about this item

    Keywords

    Beta Coefficient; Corporate Governance; Market Sensitivity Prediction; Board Structure;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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