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Governance mechanisms and downside risk

Listed author(s):
  • Wang, Li-Hsun
  • Lin, Chu-Hsiung
  • Fung, Hung-Gay
  • Chen, Hsien-Ming
Registered author(s):

    This study uses data for Taiwanese firms from 2002 to 2012 to investigate the relation between corporate governance and downside risk. Our results show that good corporate governance reduces downside risk while increasing firm value. That is, firms with high managerial ownership, market power, and independent boards appear to have lower downside risk, likely because their decision-making is more transparent than that of firms without these characteristics.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X15300081
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    Article provided by Elsevier in its journal Pacific-Basin Finance Journal.

    Volume (Year): 35 (2015)
    Issue (Month): PB ()
    Pages: 485-498

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    Handle: RePEc:eee:pacfin:v:35:y:2015:i:pb:p:485-498
    DOI: 10.1016/j.pacfin.2015.09.001
    Contact details of provider: Web page: http://www.elsevier.com/locate/pacfin

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