The effect of the corporate governance system on the specific risk of stock fluctuations based on the asset pricing model: Evidence from linear and non-linear regression.
Subject Areas : Financial accounting
fatemeh zholanezhad
1
(PhD in Accounting, Faculty of Humanities, Faizul Islam Institute of Higher Education, Khomeini Shahr, Iran.)
Raheleh Amirkhani
2
(MSc. Student of Accounting, Faculty of Humanities, Faizul Islam Institute of Higher Education, Khomeini Shahr, Iran.)
Keywords: Accepted risk, family ownership, non-family ownership, board members, women board members,
Abstract :
The structure of ownership and corporate management and corporate governance are effective and important factors for the level of risk taken by companies. The structure of ownership and corporate management and corporate governance determines the level of exposure to risk. The effects on risk-taking are significant because it can affect the company's profitability, market value changes, and the probability of bankruptcy. This research examines the effect of family ownership and corporate governance and board characteristics on the risk taken. In line with the goal of the research, twelve hypotheses were formulated. In order to test these hypotheses, using the method of systematic elimination of available statistical population, a sample consisting of 180 companies was selected from among the companies admitted to the Tehran Stock Exchange during the years 2010 to 2014. To analyze the data and test the hypotheses, multivariate regression models have been used using the combined data method. The results of the research show that family ownership affects the risk taken linearly and non-linearly, non-family ownership affects the risk taken linearly and non-linearly, the size of the board of directors does not have a significant effect on the risk taken, and also the presence of women in the board of directors. It does not have a significant effect on the accepted risk.