Corporate Governance in Jamaica: A Risk Management Approach

Abstract

This study examined how both board composition and ownership structure impact the riskiness and value of publicly traded non-financial firms in Jamaica. The study found that increasing managerial ownership was associated with larger weekly returns. In addition, the riskiness of the firm was influenced by the ownership structure and board composition. Specifically, riskier firms have a greater percentage of inside directors and have top ten shareholders that hold a smaller fraction of the firm. Even though inside directors are associated with riskier firms, these directors did not appear to increase firm value as measured by weekly returns of their firms. [PUBLICATION ABSTRACT]