Lee, Ai-Xin and Chee, Wooi Hooy (2020) State Ownership and Risk-Taking Behaviour: Evidence from Malaysia's Banking Industry. International Journal of Banking and Finance (IJBF), 15 (2). pp. 65-94. ISSN 2590-423X

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Abstract

This study investigates state ownership on risk-taking behaviour in Malaysias banking industry. Using the panel of Malaysian commercial banks, this paper examines whether banks risk-taking is affected by Malaysian government ownership through the five largest investment arms of Malaysia (GLICs). The findings show that state-owned banks exhibit higher risk-taking behaviour compared to the private-owned banks in terms of loans. There is evidence that a higher degree of state ownership has a more significant impact on banks risk-taking behaviour. We also investigate the relationship with corporate governance mechanisms. The findings suggest that the composition of board of directors somehow plays a significant role in the governance of banks.

Item Type:	Article
Uncontrolled Keywords:	State ownership, GLICs, risk-taking, corporate governance, board of directors, Malaysia
Subjects:	H Social Sciences > HG Finance
Divisions:	School of Economics, Finance & Banking
Depositing User:	Mrs Nurin Jazlina Hamid
Date Deposited:	05 Mar 2023 08:49
Last Modified:	05 Mar 2023 08:49
URI:	https://repo.uum.edu.my/id/eprint/29227

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