*3.3.1.1 Dependent variables*

*3.2.1.3 Treasury bills*

*Financial Crises - A Selection of Readings*

*3.2.1.4 Market index*

crisis on all firm's stock price volatility.

companies.

*3.2.2 Model*

bills.

**Table 7.**

**Table 8.**

**Table 9.**

**22**

*Summary statistics of management risk.*

*The correlation matrix of management risk.*

Stock returns volatility 1.0000

*Summary statistics of risk management and the financial crisis.*

Exchange rates �0.0613 1.0000

This measure has been used in the previous studies, including those of Koulakiotis et al. [32]. We want to help enrich the earlier work by studying French

*FDit* ¼ *α* þ *αiFDit* þ *βvdVOLit* þ *βvfINDD* þ *βvvFDi,t*�<sup>1</sup> þ ∑

This variable was also considered by Zhian et al. [33] and Koulakiotis et al. [32].

In **Table 7,** we can see all that the maximum standard deviation of the stock returns in the financial crisis in our sample is 73%, and there is also a much smaller standard deviation of 37%. These results show that the great impact of the financial

**Table 8** shows the correlations of all the variables. In this table, it can be seen that the stock return volatility is negatively correlated with the exchange rates, which suggests that the exchange rate variables help stabilize the stock return volatility. The stock return volatility is also positively correlated with the treasury

In **Table 9,** the results confirm that an exchange rate is negatively and signifi-

**Variable Obs Mean Std. Dev. Min Max** Stock returns volatility 986 0.6748399 0.8306421 0 7.307498 Exchange rates 986 2.006649 0.0063299 1.997008 2.019531 Treasury bills 986 2.734162 0.5490697 2.09 3.72

**Variables Stock returns volatility Exchange rates treasury Bills**

Treasury bills 0.0032 0.6833 1.0000

**Stock returns volatility Coef. Std. Err. P > |t|** Exchange rates �15.62909 5.710487 0.006 Treasury bills 0.1279229 0.0658331 0.052 Cons 31.68719 11.33675 0.005

cantly correlated with the stock return volatility. Moreover, the treasury bills

*n*

*δnYn* þ *εit* (7)

In this paper, we examine the three-way linkages between stock returns, corporate governance, and risk management. Our study focuses on French companies composing the SBF 120 Index For the data collection; we were required to use a data source, i.e., the database "http://investir.lesechos.fr." The sample period runs from 2006 to 2013. Annual returns are computed as geometric and arithmetic growth rates, respectively. In particular, we used the formula PtPt<sup>1</sup> Pt<sup>1</sup> for the annual data.
