Corporate Risk-Taking: Evidence From Indonesia

Oleh :
Widowati Dian Permatasari - F0310086 - Fak. Ekonomi dan Bisnis

This research aim to investigate the impact of government and foreign ownership, board of commissioner size and board of commissioner compositions (i.e. women representation on board, board with economic educational background and board average age) on corporate-risk taking behavior. Corporate risk-taking proxies by earning volatility within annual report. This research use a sample of 57 state-owned enterprises and 68 listed firm in Indonesia Stock Exchange over 2010-2012. This paper document significant negative association between government ownership, board of commissioner size, women representation on board, and board with economic educational background to corporate risk-taking in Indonesia. In the other hand, foreign ownership and board average age has no significant effect to corporate risk-taking.