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: Loh, Linda, Chan , Sok Gee
Format: Article
Language:English
Published: Asian Academy of Management (AAM) 2017
Subjects:
Online Access:http://eprints.usm.my/40151/
http://eprints.usm.my/40151/1/aamjaf13022017_1.pdf
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author Loh, Linda
Chan , Sok Gee
author_facet Loh, Linda
Chan , Sok Gee
author_sort Loh, Linda
building USM Institutional Repository
collection Online Access
description 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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format Article
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institution Universiti Sains Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T17:39:22Z
publishDate 2017
publisher Asian Academy of Management (AAM)
recordtype eprints
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spelling usm-401512018-04-20T08:45:35Z http://eprints.usm.my/40151/ Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure Loh, Linda Chan , Sok Gee HD28-70 Management. Industrial Management 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 Asian Academy of Management (AAM) 2017 Article PeerReviewed application/pdf en http://eprints.usm.my/40151/1/aamjaf13022017_1.pdf Loh, Linda and Chan , Sok Gee (2017) Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure. Asian Academy of Management Journal of Accounting and Finance, 13 (2). pp. 1-26. ISSN 1823-4992 http://web.usm.my/journal/aamjaf/aamjaf13022017/aamjaf13022017_1.pdf
spellingShingle HD28-70 Management. Industrial Management
Loh, Linda
Chan , Sok Gee
Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure
title Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure
title_full Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure
title_fullStr Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure
title_full_unstemmed Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure
title_short Bank Risk Taking Behaviour In Malaysia: Role Of Board And Ownership Structure
title_sort bank risk taking behaviour in malaysia: role of board and ownership structure
topic HD28-70 Management. Industrial Management
url http://eprints.usm.my/40151/
http://eprints.usm.my/40151/
http://eprints.usm.my/40151/1/aamjaf13022017_1.pdf