Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure
This paper examines the role of board structure and ownership concentration on bank risktaking of public listed commercial banks in Malaysia from 2001 to 2012. The study focuses on the bank-risk taking behaviour after the major bank consolidation in Malaysia in year 2000. Using two-market model to...
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Main Authors: | , |
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Format: | Article |
Language: | English |
Published: |
Asian Academy of Management (AAM)
2017
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Subjects: | |
Online Access: | http://eprints.usm.my/40151/1/aamjaf13022017_1.pdf http://eprints.usm.my/40151/ http://web.usm.my/journal/aamjaf/aamjaf13022017/aamjaf13022017_1.pdf |
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Institution: | Universiti Sains Malaysia |
Language: | English |
Summary: | This paper examines the role of board structure and ownership concentration on bank risktaking of public listed commercial banks in Malaysia from 2001 to 2012. The study focuses
on the bank-risk taking behaviour after the major bank consolidation in Malaysia in year
2000. Using two-market model to estimate the risk of the commercial banks in Malaysia,
the results suggest that higher ownership concentration and larger board size resulted
in higher bank risk-taking of the listed commercial banks in Malaysia. Given that the
board structure is an important element of bank risk-taking, regulators should continue to
enhance the monitoring of banks (where board size is large and ownership concentration
is high) to control the banks’ potential for excessive risk taking |
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