Does asset risk influence corporate governance in the Spanish Continuous Market?

• Eduardo Trigo ^[1] ; Asier Garayeta ^[2] ; Javier Corral-Lage ^[2] ; Joseba Iñaki De la Peña ^[2]
  1. [1] University of Malaga, Finance and Accounting Department, Malaga, Spain
  2. [2] University of the Basque Country, Financial Economics I Department, Bilbao, Spain
• Localización: RBGN: Revista Brasileira de Gestão de Negócios, ISSN 1806-4892, Vol. 28, Nº. 2, 2026, 22 págs.
• Idioma: portugués
• DOI: 10.7819/rbgn.v28i2.4340
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• Resumen

  • Purpose – This study examines the relationship between corporate governance and asset risk estimation models at the aggregate and sector-specific levels.Theoretical framework – The European Union promotes best practices in corporate governance, and as a result Spain requires compliance with the Corporate Governance Report and Recommendations.Design/methodology/approach – Using accounting information and mandatory public disclosures, the study estimates multiple linear regression models to examine the relationship between the main dimensions of corporate governance (remuneration, monitoring and governance structure) and asset risk.Findings – At the cross-sectoral level, the analysis shows that most of the variability in asset risk depends on two control variables (size and membership of the financial sector) and one variable related to corporate governance (the percentage of proprietary directors). The results do not provide statistically significant evidence to support the hypotheses concerning the variables related to corporate governance, which justifies the need for a sectoral analysis. Once intersectoral heterogeneity is eliminated, the presence of blockholders, executive remuneration, the existence of proprietary directors, and the number of board meetings explain a significant proportion of the intrasectoral variability.Practical & social implications of research – Regulators can promote governance structures; investors can assess their risk profile based on the size and sector of the firm; and boards of directors can adapt corporate governance to their sector.Originality/value – The study uses mandatory public information available since 2018 to examine the link between corporate governance and asset risk, highlighting cross-sectoral heterogeneity and the need for sectoral analysis.