Corporate Governance and Downside Systematic Risk with a Moderating Role of Socio-Political in Pakistan

  • Shahzad Hussain
  • Syed Muhammad Amir Shah

Abstract

This research investigates the effect of corporate governance on downside systematic risk with moderating effect of socio-political factor. Corporate governance covers key areas such as board structure, ownership structure and audit quality. The research used two proxies, terrorism and assassination, to construct socio-political index, whereas downside- CAPM of Estrada (2002) is used as a measure of systematic risk. Using a sample of 201 non-financial firms from 2003 to 2014, this study has used the Arellano-Bond Dynamic Data-Estimation regression approach to uncover the relationship. Results revealed that the corporate governance mechanism reduces the firm's downside systematic risk and socio-political factor moderates the relationship between corporate governance and downside systematic risk.
Published
2017-12-30
How to Cite
HUSSAIN , Shahzad; SHAH , Syed Muhammad Amir. Corporate Governance and Downside Systematic Risk with a Moderating Role of Socio-Political in Pakistan . Business & Economic Review, [S.l.], v. 9, n. 4, p. 233-258, dec. 2017. ISSN 2519-1233. Available at: <http://bereview.pk/index.php/BER/article/view/211>. Date accessed: 28 mar. 2024.
Section
Articles