Does board of directors mitigate stock price crash risk? : an empirical evidence from Egypt
Other Title(s)
هل يساهم مجلس إدارة الشركات في تخفيف حدة خطر انهيار سعر السهم : دليل عملي من مصر
Author
Source
Scientific Journal for Financial and Commercial Studies and Researches
Issue
Vol. 2, Issue 2، ج. 1 (31 Jul. 2021), pp.349-371, 23 p.
Publisher
Damietta University Faculty of Commerce
Publication Date
2021-07-31
Country of Publication
Egypt
No. of Pages
23
Main Subjects
Financial and Accounting Sciences
Topics
Abstract EN
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.
American Psychological Association (APA)
Hasan, Sarah Subhi Muhammad. 2021. Does board of directors mitigate stock price crash risk? : an empirical evidence from Egypt. Scientific Journal for Financial and Commercial Studies and Researches،Vol. 2, no. 2، ج. 1, pp.349-371.
https://search.emarefa.net/detail/BIM-1464397
Modern Language Association (MLA)
Hasan, Sarah Subhi Muhammad. Does board of directors mitigate stock price crash risk? : an empirical evidence from Egypt. Scientific Journal for Financial and Commercial Studies and Researches Vol. 2, no. 2, p. 1 (Jul. 2021), pp.349-371.
https://search.emarefa.net/detail/BIM-1464397
American Medical Association (AMA)
Hasan, Sarah Subhi Muhammad. Does board of directors mitigate stock price crash risk? : an empirical evidence from Egypt. Scientific Journal for Financial and Commercial Studies and Researches. 2021. Vol. 2, no. 2، ج. 1, pp.349-371.
https://search.emarefa.net/detail/BIM-1464397
Data Type
Journal Articles
Language
English
Notes
-
Record ID
BIM-1464397