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

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  • Quang Khai Nguyen
  • Zhaojun Yang

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.

Suggested Citation

  • Quang Khai Nguyen & Zhaojun Yang, 2020. "Ownership structure and bank risk-taking in ASEAN countries: A quantile regression approach," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1809789-180, January.
  • Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1809789
    DOI: 10.1080/23322039.2020.1809789
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    Cited by:

    1. He, Wenjia & He, Wenjing & Xu, Dandan & Yue, Pengpeng, 2023. "Economic volatility, banks’ risk accumulation and systemic risk," Finance Research Letters, Elsevier, vol. 57(C).
    2. Nguyen, Quang Khai, 2022. "Audit committee structure, institutional quality, and bank stability: evidence from ASEAN countries," Finance Research Letters, Elsevier, vol. 46(PA).
    3. Khoa Dang Duong & Ai Nhan Ngoc Le & Diep Van Nguyen & Hoa Thanh Phan Le, 2023. "Impact of Ownership Structure and Business Diversifications on the Risk-Taking Behaviors of Insurance Companies in Vietnam," SAGE Open, , vol. 13(3), pages 21582440231, August.
    4. Nguyen, Quang Khai, 2022. "Determinants of bank risk governance structure: A cross-country analysis," Research in International Business and Finance, Elsevier, vol. 60(C).
    5. Tu T. T. Tran & Yen Thi Nguyen, 2021. "Restructuring Measurements Impact on Bank Risk After the Global Financial Crisis — Empirical Evidence from Vietnam," Review of Pacific Basin Financial Markets and Policies (RPBFMP), World Scientific Publishing Co. Pte. Ltd., vol. 24(03), pages 1-28, September.

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