The relation between board attributes and risk on listed state-owned enterprises

Authors

  • Carolina Coletta Escola Superior de Agricultura "Luiz de Queiroz", Universidade de São Paulo
  • Roberto Arruda de Souza Lima Escola Superior de Agricultura "Luiz de Queiroz", Universidade de São Paulo

DOI:

https://doi.org/10.5007/2175-8077.2021.e61106

Abstract

Board of directors are considered the main mechanism of corporate governance. Such boards must overlook risk management and create controls to prevent corruption in state-owned enterprises. Considering that board of directors deliberate about strategic decisions that inherently present risks, its performance and attributes can impact the firm’s stability. The main purpose of this study is to investigate the relation between listed state-owned enterprises board attributes and its risk, measured by stock volatility. The firms with higher market liquidity were considered from 2015 to 2017. Board size presents a positive relation with risk, while the presence of women and independent directors present a negative relation with risk. However, these relations are not statistically significant, which points out to possible interference and flaws in the corporate governance of these firms.

Author Biographies

Carolina Coletta, Escola Superior de Agricultura "Luiz de Queiroz", Universidade de São Paulo

Mestranda no Programa de Pós-Graduação em Administração, Departamento de Economia, Administração e Sociologia, Escola Superior de Agricultura "Luiz de Queiroz", Universidade de São Paulo

Roberto Arruda de Souza Lima, Escola Superior de Agricultura "Luiz de Queiroz", Universidade de São Paulo

Professor Doutor no Programa de Pós-Graduação em Administração, Departamento de Economia, Administração e Sociologia, Escola Superior de Agricultura "Luiz de Queiroz", Universidade de São Paulo

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Published

2021-05-20

How to Cite

Coletta, C., & Lima, R. A. de S. (2021). The relation between board attributes and risk on listed state-owned enterprises. Revista De Ciências Da Administração, 23(59), 94–105. https://doi.org/10.5007/2175-8077.2021.e61106

Issue

Vol. 23 No. 59 (2021): Revista de Ciências da Administração

Section

Articles

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