TY - JOUR AU - Teodósio, João AU - Madaleno, Mara AU - Vieira, Elisabete PY - 2022/04/08 Y2 - 2024/03/28 TI - Corporate governance effects on market volatility: Empirical evidence from Portuguese listed firms JF - Review of Business Management JA - Rev. Bras. Gest. Neg. VL - 24 IS - 1 SE - Articles DO - UR - https://rbgn.fecap.br/RBGN/article/view/4156 SP - AB - <p><strong>Purpose</strong> – This study examines the relationship between internal corporate governance mechanisms and firm risk-taking.</p><p><strong>Design/methodology/approach </strong>– This research comprises a sample of 38 non-financial Portuguese listed firms on Euronext Lisbon, over the period 2007-2017. To test the formulated hypotheses we use Panel Corrected Standard Errors (PCSE) models.</p><p><strong>Findings </strong>– Our results provide evidence that, in the Portuguese context, bigger young firms, with larger boards of directors and with a greater degree of independent directors, present higher levels of systematic risk. Our results are consistent across robustness checks.</p><p><strong>Originality/value </strong>– To the best of our knowledge, this is the first time that is reported a robust incremental effect of the board size on firm systematic risk. This result contradicts the prevailing literature and opens a new debate, from the financial markets’ points of view, on the benefits of larger boards of directors in the mitigation of market volatility.</p><p><strong>Keywords – </strong>directors; board; volatility; stock returns; independence</p> ER -