State Ownership, Cross-Border Acquisition, and Risk-Taking: Evidence from China's Banking Industry

2014 ◽  
Author(s):  
Wenyu Zhu ◽  
Jiawen Yang
Keyword(s):  
Risk Taking ◽  
Banking Industry ◽  
State Ownership ◽  
Cross Border

scholarly journals State Ownership and Risk-Taking Behaviour: Evidence from Malaysia’s Banking Industry

2020 ◽  
Vol 15 ◽  
pp. 65-94
Author(s):  
Ai-Xin Lee ◽  
Chee-Wooi Hooy
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Significant Role ◽  
Risk Taking ◽  
Commercial Banks ◽  
Banking Industry ◽  
State Ownership ◽  
Government Ownership ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This study investigates state ownership on risk-taking behaviour in Malaysia’s 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.

scholarly journals State Ownership and Risk-Taking Behaviour: Evidence from Malaysia’s Banking Industry

2020 ◽  
Author(s):  
Ai-Xin Lee ◽  
Chee-Wooi Hooy
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Significant Role ◽  
Risk Taking ◽  
Commercial Banks ◽  
Banking Industry ◽  
State Ownership ◽  
Government Ownership ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This study investigates state ownership on risk-taking behaviour in Malaysia’s 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.

Post-privatization state ownership and bank risk-taking: Cross-country evidence

2020 ◽  
Vol 64 ◽  
pp. 101625 ◽  
Author(s):  
Narjess Boubakri ◽  
Sadok El Ghoul ◽  
Omrane Guedhami ◽  
Mahmud Hossain
Keyword(s):  
Risk Taking ◽  
State Ownership ◽  
Bank Risk ◽  
Cross Country

Competition, Bonuses, and Risk-Taking in the Banking Industry

2011 ◽  
Author(s):  
Christina E. Bannier ◽  
Eberhard Feess ◽  
Natalie Packham
Keyword(s):  
Risk Taking ◽  
Banking Industry

scholarly journals Does Financial Liberalization Affect Bank Risk-Taking in China?

SAGE Open ◽  
2019 ◽  
Vol 9 (4) ◽  
pp. 215824401988794 ◽  
Author(s):  
Rui Wang ◽  
Hang (Robin) Luo
Keyword(s):  
Law Enforcement ◽  
Risk Taking ◽  
Financial Liberalization ◽  
State Ownership ◽  
Bank Risk ◽  
Bank Stability ◽  
Positive Effects ◽  
Level Data ◽  
Chinese Banks ◽  
Political Conditions

This article examines the effect of financial liberalization on bank risk-taking, using bank-level data of 169 Chinese banks from 2000-2014. Empirical results show that bank stability increases with the development of financial liberalization. We also provide evidence indicating that banks with larger size, longer operating periods, and state ownership are more salient with the development of financial liberalization. However, such positive effects of financial liberalization on bank stability may be weakened by worse macroenvironment gauged by low economic growth, poor law enforcement, and instable political conditions.

scholarly journals The Dollar, Bank Leverage, and Deviations from Covered Interest Parity

2019 ◽  
Vol 1 (2) ◽  
pp. 193-208 ◽  
Author(s):  
Stefan Avdjiev ◽  
Wenxin Du ◽  
Cathérine Koch ◽  
Hyun Song Shin
Keyword(s):  
Capital Markets ◽  
Risk Taking ◽  
Bank Lending ◽  
Global Capital ◽  
Cross Border ◽  
Covered Interest Parity ◽  
Interest Parity ◽  
Triangular Relationship

We document a triangular relationship in that a stronger dollar goes hand in hand with larger deviations from covered interest parity (CIP) and contractions of cross-border bank lending in dollars. We argue that underpinning the triangle is the role of the dollar as a key barometer of risk-taking capacity in global capital markets. (JEL F23, F31, G15, G21)

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