Corporate Governance and Risk Taking

@article{John2008CorporateGA,
  title={Corporate Governance and Risk Taking},
  author={Kose John and Lubomir P. Litov and Bernard Yeung},
  journal={Journal of Finance},
  year={2008},
  volume={63},
  pages={1679-1728}
}
Better investor protection could lead corporations to undertake riskier but value-enhancing investments. For example, better investor protection mitigates the taking of private benefits leading to excess risk-avoidance. Further, in better investor protection environments, stakeholders like creditors, labor groups, and the government are less effective in reducing corporate risk-taking for their self-interest. However, arguments can also be made for a negative relationship between investor… 
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