Mediha Mezhoud, Asma Sghaier and Adel Boubaker

Correspondence: Asma Sghaier, asma_sghaier1983@yahoo.fr

University of Sousse (LaREMFiQ), Tunisia

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Abstract

This paper investigates the impact of internal governance structure on firm-level stock return volatility in Paris Stock Exchange based on our study of a sample of 65 firms for the daily period from January 2010 to December 2012.The research has sixth hypotheses. To test each hypothesis; a model was defined based on dependent variables employed to measure the share price volatility. Our findings reveal different results by using different models of multivariate regression. The empirical results show no statistically significant relationship to any components of ownership structure. However, the results also show that the components for the board structure reduce volatility. Indeed, we document a statistically significant negative relationship between the board independence, the CEO Duality, the board size and the share price volatility. Hence, the board structure is not expected to cause severe volatility in the stock prices, which in turn, is consistent with the results of this study.

Keywords:

  Share price volatility, Ownership Structure, Board structure, Paris stock exchange

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