Template-Type: ReDIF-Article 1.0
Author-Name: Linda Loh 
Author-Workplace-Name: Department of Finance and Banking, Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia
Author-Name: Chan Sok-Gee
Author-Workplace-Name: Department of Finance and Banking, Faculty of Business and Accountancy, University of Malaya, 50603 Kuala Lumpur, Malaysia
Author-Email: sokgee@um.edu.my
Title: Bank Risk Taking Behaviour in Malaysia: Role of Board and Ownership Structure
Abstract: This paper examines the role of board structure and ownership concentration on bank risk-taking 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.
Keywords: bank-risk taking, corporate governance, board structure, ownership
concentration, commercial banks
Pages: 1-26
Volume: 13
Issue: 2
Year: 2017
File-URL:  http://web.usm.my/journal/aamjaf/aamjaf13022017/aamjaf13022017_1.pdf
File-Format: Application/pdf
Handle: RePEc:usm:journl:aamjaf01302_1-26