Proceedings of 3rd Global Accounting, Finance and Economics Conference
5 - 7 May, 2013, Rydges Melbourne, Australia, ISBN: 978-1-922069-23-8
The Effect of Risk Taking On Ownership Structure and
Bank Performance: A Malaysia Case
Nora Azureen Abdul Rahman and Anis Farida Rejab
This paper analyses the impact of ownership structure on bank performance
and the interaction effects of bank risk taking which is proxied by loan
concentration, on the relationship. Using secondary data, the empirical
analysis of this study is confined to Malaysian commercial banks during the
periods of 2000 to 2011. Hierarchical moderated multiple regression with
fixed effects model is used to test the research model. Testing on five
categories of ownership such as insider, family, government, institutional and
foreign ownership, the results suggest that bank performance varies with
different types of ownership. The results show that high concentration of
insider, government and Institutional ownership reduced bank performance
while high family and foreign ownership have no significant impact on bank
performance. The regression results also show that the impact of ownership
structure on bank performance is affected by the banks' risk taking whereby
high exposure to risk reduces the bank performance.
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Dr. Nora Azureen Abdul Rahman, Universiti Utara Malaysia, Malaysia.Email: azureen@uum.edu.my
Anis Farida Mat Rejab, Universiti Utara Malaysia, Malaysia, Email: anis@uum.edu.my