The Impact of Corporate Governance on Corporate Risk-taking : Evidence from Listed Companies in Ho Chi Minh Stock Exchange (HOSE)

Abstract

This study aims to investigating the relationship between corporate governance performance and corporate risk-taking, as well as finding out whether the concentration of ownership in enterprises has any impact on this relationship or not. In which, all the data are collected based on published information from the financial and annual reports of 285 companies on the Ho Chi Minh City Stock Exchange. Based on the results from the linear regression model, this study finds that there is a positive relationship between corporate governance and risk-taking behavior. Besides, the level of concentration of owners also positively affects this relationship. These findings lead to a conclusion that good corporate governance performance in a high ownership concentration business environment will increase the level of companies to take risks.