Ownership structure and risk taking of Malaysian banking institutions: A comparative measurement applied in developed and emerging countries

Nasyra Ab Jamil, Rasidah Mohd Said, Mohd Fahmi Abdul Hamid, Yeong Chin Teo

Research output: Contribution to journalArticle

Abstract

This research aims to investigate the comparative measurement impact of the three ownership structures (government, institutional and family) on bank risk takings measured by Z-Score with capital adequacy ratio as the moderating element towards bank risk taking as measured by Z-Score, along with the five control variables. There are two Z-Score measurement used in this study. The first Z-Score measurement is used to measure risk taking in developed countries, meanwhile the second Z-Score is the formulation that is used and is based on the context that fits for Malaysia as one of the emerging markets. Data from eight Large Domestically-owned Commercial Banks in Malaysia for the period that ran from 2000 to 2012 is used in this research. Hierarchical moderated multiple regression results suggest that capital adequacy is significant as a moderating factor merely for the second measurement of bank risk. Besides, the interaction between family ownership and capital adequacy are also found to be significant only towards risk taking for the second measurement of the bank risk.

Original languageEnglish
Pages (from-to)320-337
Number of pages18
JournalInternational Journal of Innovation, Creativity and Change
Volume6
Issue number4
Publication statusPublished - 1 Jan 2019

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ownership structure
banking
bank
Malaysia
Banking
Ownership
Risk Taking
regression
market
Adequacy
interaction

Keywords

  • Banking
  • Capital adequacy ratio
  • Emerging
  • Ownership structure
  • Risk taking
  • Z-Score

ASJC Scopus subject areas

  • Education
  • Arts and Humanities (miscellaneous)

Cite this

Ownership structure and risk taking of Malaysian banking institutions : A comparative measurement applied in developed and emerging countries. / Jamil, Nasyra Ab; Said, Rasidah Mohd; Abdul Hamid, Mohd Fahmi; Teo, Yeong Chin.

In: International Journal of Innovation, Creativity and Change, Vol. 6, No. 4, 01.01.2019, p. 320-337.

Research output: Contribution to journalArticle

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