Corporate governance and the variability of stock returns: evidence from New Zealand companies

Koerniadi, Hardjo and Krishnamurti, Chandrasekhar and Tourani-Rad, Alireza (2010) Corporate governance and the variability of stock returns: evidence from New Zealand companies. In: Inaugural Finance and Corporate Governance Conference (FCGC 2010), 7-9 Apr 2010, Melbourne, Australia.

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Abstract

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 practices are associated with lower levels of unsystematic risk.

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Item Type:	Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed:	Yes
Item Status:	Live Archive
Additional Information:	Papers from this conference were published on the SSRN website at http://papers.ssrn.com/sol3/JELJOUR_Results.cfm?form_name=journalbrowse&journal_id=1496615. Copyright La Trobe University. See Program at http://www.latrobe.edu.au/__data/assets/file/0003/67305/2010-gsm-fcgc-program.pdf
Faculty/School / Institute/Centre:	Historic - Faculty of Business - School of Accounting, Economics and Finance (1 Apr 2007 - 31 Dec 2010)
Faculty/School / Institute/Centre:	Historic - Faculty of Business - School of Accounting, Economics and Finance (1 Apr 2007 - 31 Dec 2010)
Date Deposited:	19 Oct 2011 07:18
Last Modified:	03 Jul 2013 00:49
Uncontrolled Keywords:	corporate governance; New Zealand; stock return variability
Fields of Research (2008):	15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management 15 Commerce, Management, Tourism and Services > 1503 Business and Management > 150303 Corporate Governance and Stakeholder Engagement
Fields of Research (2020):	35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350202 Finance 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350208 Investment and risk management 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350799 Strategy, management and organisational behaviour not elsewhere classified
Socio-Economic Objectives (2008):	B Economic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services
URI:	http://eprints.usq.edu.au/id/eprint/19809

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