Corporate Governance Structure and Corporate Risk-Taking: Evidence of Malaysian Agriculture Sector

Abstract

Purpose: This study explores the role of corporate governance structure and corporate risk-taking of on Malaysian agriculture sector. Despite its importance in mitigating climate change, the agricultural sector also faces global competition, market liberalisation, rapid technological advances and the starter of stricter quality and safety procedures, all of which require firms to take greater risks. Design/methodology/approach: This study explores this relationship by applying generalised least square (GLS), random effect methodologies (REM). The sample of this study uses panel data from 2015 to 2021. Findings: The findings report a negative relationship between corporate governance structure and corporate risk-tak-ing using a sample of firms from an emerging market. Research limitations/implications: The effects of these results for management practice and recommendations for further research were examined. The limitation of this study provides a sample of study using a limited number of agricultural firms in Malaysia. Originality/value: While this empirical study used a single industry-focused sample, most previous studies have focused on multiple industries. A key feature of this study is the analysis of how corporate governance structures affect the risk appetite of Malaysian agribusinesses.