Work

Ownership structure and bank risk-taking in ASEAN countries: A quantile regression approach

Year: 2020

Type: article

Abstract: This study examines the effect of ownership structure on the risk-taking behavior of banks in ASEAN countries. Using a sample of 96 commercial banks in ASEAN countries from 2002 to 2018, the study demonstrates that the relationship between ownership structure and bank risk-taking behavior is correlated with the characteristics of individual banks in terms of quantile regression. First, state ownership and foreign ownership affect bank risk-taking positively in high-risk banks while negatively in low-risk banks. Second, the relationship between ownership concentration and risk-taking is negative in all distributions of bank risk. These findings suggest that appropriate ownership structure can constrain bank risk-taking activities in accordance with the level of risk of each bank.

Source: Cogent Economics & Finance

DOI: 10.1080/23322039.2020.1809789

Author: Quang Khai Nguyen

Institution: University of Economics Ho Chi Minh City

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: gold

Estimated APC paid: $1,165