| dc.description.abstract | After the study of Campbell et al. (2001) investigating the idiosyncratic volatility puzzle, there has been an increased interest by scholars in idiosyncratic volatility literature from countries around the globe. Thus, this study endeavors to explore the influence of financial reporting quality and corporate governance on idiosyncratic volatility. The study is conducted with a sample of 101 publicly listed firms on HOSE (Ho Chi Minh Stock Exchange) taken from 2009 to 2016 (N=808). The results show that financial reporting quality is in a positive relationship with idiosyncratic risk, while a negative relationship is witnessed between financial reporting quality and total risk. The study also finds out that firms with lower state ownership tend to have higher idiosyncratic risk rates relatively. From those findings, this paper is hoped to contribute further knowledge for investors in expecting idiosyncratic risk particularly in the security market of Vietnam, at the same time, open up more research on other determinants of idiosyncratic volatility’s changes.
Keywords: Idiosyncratic volatility, financial reporting quality, corporate governance, board characteristics | en_US |
