Panel data analysis of Malaysian listed banks on corporate gevernance and risk
The objective of this paper is to examine the impact of corporate governance on the risk of banks. A sample of twelve listed bank holding companies is examined over a ten year period (1996-2005). Based on the panel data analysis, separate board leadership structure, higher proportion of independen...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2010
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/2277/ http://irep.iium.edu.my/2277/ http://irep.iium.edu.my/2277/1/The_Impact_of_Corporate_Governance_on_risk.pdf |
| Summary: | The objective of this paper is to examine the impact of corporate governance on the risk of banks. A sample of twelve listed bank holding companies is examined over a ten year period (1996-2005). Based on the panel data analysis, separate board leadership structure, higher proportion of independent directors, smaller board size, lower director ownership, higher institutional ownership and higher block ownership seem to have lower risk. The study applies the agency theory. All findings except director ownership are in line with theoretical expectation. It might be due to three main reasons as discussed in the paper.
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