Does board of directors mitigate stock price crash risk? An empirical evidence from Egypt | ||
| المجلة العلمية للدراسات والبحوث المالية والتجارية | ||
| Article 11, Volume 2, العدد الثاني - الجزء الأول - Serial Number 1, February 2021, Pages 349-371 PDF (740.76 K) | ||
| Document Type: المقالة الأصلية | ||
| DOI: 10.21608/cfdj.2021.153766 | ||
| Author | ||
| سارة صبحي محمد | ||
| قسم ادارة الاعمال -کليه التجارة - جامعة القاهرة | ||
| Abstract | ||
| Purpose: The main aim of the current research is to investigate the role of board of directors in explaining the behaviour of stock price crash risk in the Egyptian context over 2014-2018. Design / methodology / approach: The sample employed in this paper consists of the companies included in EGX30 from 2014 to 2018. Following literature (see for example: Chen et.al 2001; Tarkovska, V., 2014; Kwon et.al 2019; Kothari et.al 2008), one measurement was used in this research to measure stock price crash risk which is “down-to-up volatility”. Findings: This research shows that board of directors’ characteristics are not associated with stock price crash risk. However, some control variables are related to stock price crash risk. leverage has a significant negative association with stock price crash risk which means that increasing debt as a finance source increases the probability of stock price crash exposure at 90% significance level. Also, firm size has a significant negative impact on stock price crash risk at 99% significance level. Originality/ value: This article is one of the first to investigate whether board of directors ‘characteristics contribute to explain stock price crash risk in the context of Egyptian economy. | ||
| Keywords | ||
| corporate governance; board of directors; stock price crash risk; CEO duality; board independence; board size; ROA; leverage; firm size | ||
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