MPRA_paper_78137.pdf (675.3 kB)
How the corporate governance mechanisms affect bank risk taking
journal contribution
posted on 2023-06-10, 02:47 authored by Emmanuel Mamatzakis, Xiaoxiang ZhangXiaoxiang Zhang, Chaoke WangThe effectiveness of the management team, ownership structure and other corporate governance systems in determining appropriate risk taking is a critical issue in a modern commercial bank. Appropriate risk management techniques and structures within financial institutions play an important role to ensure the stability of economy. After analyzing 43 Asian banks over the period from 2006 to 2014, I find that banks with strong corporate governance are associated with higher risk taking. More specifically, banks with intermediate size of board, separation of CEO and chairman of board, and audited by Big Four audit firm, are likely higher risk taking. Overall, my findings provide some new perspectives into the governance mechanisms that affect risk taking on commercial banks
History
Publication status
- Published
File Version
- Published version
Journal
The Munich Personal RePEc Archive (MPRA)Publisher
University Library LMU MunichPublisher URL
Page range
1-62Department affiliated with
- Accounting and Finance Publications
Notes
Paper No. 78137Full text available
- Yes
Peer reviewed?
- No