Work

Does the Quality of Governance Matter for Equity Market Risk? Evidence From Emerging and Developed Equity Markets

Year: 2014

Type: article

Abstract: This paper examines the relation between country-level governance and cross-country differences in equity market risk by employing panel data regressions. For emerging markets, we find consistent evidence that governance quality of various dimensions is negatively related to equity market risk. On the contrary, for developed markets, the results show that there is generally little or no relation between governance quality and equity market risk. The results provide practical implication to policy makers of emerging markets by highlighting the relevant governance dimensions that constitute important drivers of stock market risk. The findings have academic implication in the context of equilibrium pricing of stock market in emerging market.

Source: Journal of Business Economics and Management

DOI: 10.3846/16111699.2012.720595

Authors: Soo-Wah Low, Lain-Tze Tee, Si-Roei Kew

Institution: National University of Malaysia

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $647