PANEL DATA ANALYSIS OF MALAYSIAN LISTED BANKS ON CORPORATE GOVERNANCE AND RISK
PANEL DATA ANALYSIS OF MALAYSIAN LISTED BANKS ON CORPORATE GOVERNANCE AND RISK

Summary/Abstract: 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 has been examined over a ten-year period (1996-2005). Based on the panel data analysis, separate board leadership structure, higher proportion of independent directors, smaller size board, 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 discussed in the paper.

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