Version 1
: Received: 22 July 2024 / Approved: 23 July 2024 / Online: 24 July 2024 (11:29:44 CEST)
How to cite:
Rahman, H. U.; Ali, A.; Arian, A.; Sands, J. Does Corporate Governance and Earning Quality Mitigate Idiosyncratic Risk? Evidence from an Emerging Economy. Preprints2024, 2024071901. https://doi.org/10.20944/preprints202407.1901.v1
Rahman, H. U.; Ali, A.; Arian, A.; Sands, J. Does Corporate Governance and Earning Quality Mitigate Idiosyncratic Risk? Evidence from an Emerging Economy. Preprints 2024, 2024071901. https://doi.org/10.20944/preprints202407.1901.v1
Rahman, H. U.; Ali, A.; Arian, A.; Sands, J. Does Corporate Governance and Earning Quality Mitigate Idiosyncratic Risk? Evidence from an Emerging Economy. Preprints2024, 2024071901. https://doi.org/10.20944/preprints202407.1901.v1
APA Style
Rahman, H. U., Ali, A., Arian, A., & Sands, J. (2024). Does Corporate Governance and Earning Quality Mitigate Idiosyncratic Risk? Evidence from an Emerging Economy. Preprints. https://doi.org/10.20944/preprints202407.1901.v1
Chicago/Turabian Style
Rahman, H. U., Adam Arian and John Sands. 2024 "Does Corporate Governance and Earning Quality Mitigate Idiosyncratic Risk? Evidence from an Emerging Economy" Preprints. https://doi.org/10.20944/preprints202407.1901.v1
Abstract
This study investigates the evolving corporate governance mechanisms within the context of an emerging economy. Addressing a literature gap, we analyse the influence of corporate governance and earnings quality on idiosyncratic risk in an emerging economy. In particular, this research explores the impact of corporate governance practices and earnings quality on idiosyncratic risk. For this purpose, we utilise a sample of 75 non-financial firms listed on the Pakistani equity market over nine years from 2010 to 2018. Employing the generalised method of moments, the findings of our empirical analysis reveal that firms with robust governance mechanisms and higher earnings quality experience minimal idiosyncratic risk. These outcomes provide valuable insights for standard setters, regulatory authorities, policymakers, and other stakeholders, emphasising the importance of governance mechanisms and earnings management in mitigating idiosyncratic return volatility.
Business, Economics and Management, Accounting and Taxation
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
