How the corporate governance mechanisms affect bank risk taking

Mamatzakis, Emmanuel, Zhang, Xiaoxiang and Wang, Chaoke (2017) How the corporate governance mechanisms affect bank risk taking. The Munich Personal RePEc Archive (MPRA). pp. 1-62.

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Abstract

The 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

Item Type: Article
Additional Information: Paper No. 78137
Keywords: Banks, Risk taking, Corporate governance
Schools and Departments: University of Sussex Business School > Accounting and Finance
SWORD Depositor: Mx Elements Account
Depositing User: Mx Elements Account
Date Deposited: 03 Mar 2022 09:15
Last Modified: 07 Mar 2022 15:46
URI: http://sro.sussex.ac.uk/id/eprint/104674

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