Corporate governance and risk-taking: Evidence from Japanese firms

Nguyen, P

Corporate governance and risk-taking: Evidence from Japanese firms

Nguyen, P

Permalink

Publication Type:: Journal Article
Citation:: Pacific Basin Finance Journal, 2011, 19 (3), pp. 278 - 297
Issue Date:: 2011-06-01

Closed Access

	Filename	Description	Size
	2010002445OK.pdf	Published Version	227.65 kB	Adobe PDF	View/Open

Copyright Clearance Process

Recently Added
In Progress
Closed Access

This item is closed access and not available.

Full metadata record

Field	Value	Language
dc.contributor.author	Nguyen, P	en_US
dc.date.issued	2011-06-01	en_US
dc.identifier.citation	Pacific Basin Finance Journal, 2011, 19 (3), pp. 278 - 297	en_US
dc.identifier.issn	0927-538X	en_US
dc.identifier.uri	http://hdl.handle.net/10453/31251
dc.description.abstract	This paper examines the influence of corporate governance on the risk taking of Japanese firms. We show that family control and ownership concentration are associated with higher idiosyncratic risk, whereas bank control has the opposite effect. Considering the link between idiosyncratic risk and firm performance, the results provide an economic rationale for the higher (lower) performance of family-controlled firms (bank-controlled firms). The results also explain the higher performance of firms with concentrated ownership by relating their governance structures to the risk-taking strategies that generate greater competitive advantages. Finally, we show that the impact of governance structures on risk taking is stronger after controlling for endogeneity. © 2010 Elsevier B.V.	en_US
dc.relation.ispartof	Pacific Basin Finance Journal	en_US
dc.relation.isbasedon	10.1016/j.pacfin.2010.12.002	en_US
dc.subject.classification	Finance	en_US
dc.title	Corporate governance and risk-taking: Evidence from Japanese firms	en_US
dc.type	Journal Article
utslib.citation.volume	3	en_US
utslib.citation.volume	19	en_US
utslib.for	1501 Accounting, Auditing and Accountability	en_US
utslib.for	1502 Banking, Finance and Investment	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Strength - CCG - Centre for Corporate Governance
utslib.copyright.status	closed_access
pubs.issue	3	en_US
pubs.publication-status	Published	en_US
pubs.volume	19	en_US

Abstract:

This paper examines the influence of corporate governance on the risk taking of Japanese firms. We show that family control and ownership concentration are associated with higher idiosyncratic risk, whereas bank control has the opposite effect. Considering the link between idiosyncratic risk and firm performance, the results provide an economic rationale for the higher (lower) performance of family-controlled firms (bank-controlled firms). The results also explain the higher performance of firms with concentrated ownership by relating their governance structures to the risk-taking strategies that generate greater competitive advantages. Finally, we show that the impact of governance structures on risk taking is stronger after controlling for endogeneity. © 2010 Elsevier B.V.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/31251