The role of state and foreign owners in corporate risk-taking: Evidence from privatization

• 成果类型: Article
• 署名作者: Boubakri, Narjess; Cosset, Jean-Claude; Saffar, Walid
• 署名单位: American University of Sharjah; Universite de Montreal; HEC Montreal; Hong Kong Polytechnic University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2012.12.007
• 发表日期: 2013
• 页码: 641-658
• 关键词: Privatization; risk-taking; corporate governance

摘要

Using a unique database of 381 newly privatized firms from 57 countries, we investigate the impact of shareholders' identity on corporate risk-taking behavior. We find strong and robust evidence that state (foreign) ownership is negatively (positively) related to corporate risk-taking. Moreover, we find that high risk-taking by foreign owners depends on the strength of country-level governance institutions. Our results suggest that relinquishment of government control, openness to foreign investment, and improvement of country-level governance institutions are key determining factors of corporate risk-taking in newly privatized firms. (C) 2012 Elsevier B.V. All rights reserved.