Crisis Propagation and Governance

Hanene Ezzine, Bernard Olivero and Ridha Shabou
Additional contact information
Hanene Ezzine: FSEG - Université de Sfax - University of Sfax
Bernard Olivero: CRIFP - Centre de Recherche en Ingénierie Financière et Finances Publiques - UNS - Université Nice Sophia Antipolis (1965 - 2019)
Ridha Shabou: FSEG - Université de Sfax - University of Sfax

Post-Print from HAL

Abstract: Following the appearance of the recent scandals, the question of the efficiency of the corporate governance mechanisms to appease the financial crisis can be raised. The purpose of this paper is to study the impact of the board of directors effectiveness on the firm's ability to resist the Asian stock market crisis. The firm ability to resist the Asian stock market crisis is assessed by minimization of financial return's conditional volatility estimated by ARCH and GARCH models. Using a data from 94 listed and industrial firms in four East Asian countries: Malaysia, Thailand, Indonesia, and the Philippines between 1996 and 1998, we find that the board size and the presence of the outside directors are negatively linked to the financial return's conditional volatility. This result seems to be compatible with the argument which supposes that the efficient boards can increase the ability to control the managers and the capability of firms to resist the crisis. The leadership structure would be without effect on the resistance to the crisis and the CEO turnover would have a positive effect on the financial return's conditional volatility.

Keywords: corporate governance; board of directors; propagation of crisis; financial return's conditional volatility (search for similar items in EconPapers)
Date: 2009-05-27
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00455743
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in La place de la dimension européenne dans la Comptabilité Contrôle Audit, May 2009, Strasbourg, France. pp.CD ROM

Downloads: (external link)
https://shs.hal.science/halshs-00455743/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00455743

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().