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153766

Does board of directors mitigate stock price crash risk? An empirical evidence from Egypt

Article

Last updated: 22 Jan 2023

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Tags

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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.    

DOI

10.21608/cfdj.2021.153766

Keywords

Corporate Governance, Board of Directors, stock price crash risk, CEO Duality, Board Independence, Board Size, ROA, Leverage, Firm Size

Authors

First Name

سارة

Last Name

صبحي محمد

MiddleName

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Affiliation

قسم ادارة الاعمال -کليه التجارة - جامعة القاهرة

Email

sarah_sobhy@foc.cu.edu.eg

City

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Orcid

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Volume

2

Article Issue

العدد الثاني - الجزء الأول

Related Issue

21644

Issue Date

2021-02-01

Receive Date

2021-02-07

Publish Date

2021-03-05

Page Start

349

Page End

371

Print ISSN

2682-3403

Online ISSN

2682-4531

Link

https://cfdj.journals.ekb.eg/article_153766.html

Detail API

https://cfdj.journals.ekb.eg/service?article_code=153766

Order

11

Type

المقالة الأصلية

Type Code

1,242

Publication Type

Journal

Publication Title

المجلة العلمية للدراسات والبحوث المالية والتجارية

Publication Link

https://cfdj.journals.ekb.eg/

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Article

Created At

22 Jan 2023