The impact of risk governance structure on bank risk management effectiveness: evidence from ASEAN countries

Nguyen, Quang; Dang, Van Cuong

doi:10.1016/j.heliyon.2022.e11192

Cited by 41 publications

(41 citation statements)

References 95 publications

(116 reference statements)

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“…Higher values of ROA and ROE, which are known as accounting-based measures of firm performance, imply that firms effectively use capital and assets to generate profits; thus, the higher the ROA and ROE, the higher the firm performance. These measures are widely used in the literature [28][29][30][31][32].…”

Section: Variables Measuresmentioning

confidence: 99%

The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter?

et al. 2023

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This study investigated the impact of the COVID-19 crisis on firm risk and performance in different country-level governance qualities in the MENA region. Analyzing a sample of 739 non-financial listed firms in 12 MENA countries for the period 2011–2020, we found that the COVID-19 crisis negatively impacted the performance of firms, especially low-performance firms, in most industries, and increased firm risk in general. Moreover, we found that national governance quality plays an important role in mitigating the negative impact of the COVID-19 crisis on firm operations. Specifically, national governance quality reduces the negative impact of the COVID-19 crisis on firm performance and the positive impact of the crisis on firm risk. The results are consistent with our contention that national governance quality contributes to creating a positive environment for businesses activities and reducing economic shocks.

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Section: Variables Measuresmentioning

confidence: 99%

The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter?

et al. 2023

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“…For instance, the second regression analysis included the effect of control variables and one independent variable, the third contained two independent variables, and so on. These methods are used in many previous studies (Nguyen & Dang, 2020;Nguyen, 2022aNguyen, , 2022dNguyen & Dang, 2022a).…”

Section: Methodsmentioning

confidence: 99%

Corporate Governance, Firm Characteristics and Firm Performance: Empirical Evidence from Vietnam.

2023

JOWETT

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The purpose of this research was to examine how corporate governance methods relate to the performance of companies in Vietnam. The study used a dataset of 85 manufacturing firms listed on the Ho Chi Minh City stock exchange (HOSE) and applied Random-Effect Model (REM) and the Feasible Generalized Least Squares Model (FGLS) method. We found that the performance of a firm is positively influenced by a CEO's age, and gender diversity in boards of directors (BOD). However, firm size and board size have a negative impact on firm performance. The research recommends that companies should not increase board size. Additionally, promoting women executives in the boardroom can bring cultural diversity benefits and reduce information asymmetry. Based on the findings, the research proposes several recommendations for companies and managers to improve performance and reduce the negative effects of poor governance mechanisms.

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“…Regulatory oversight is one of the measures for developing, or improving, coherent risk governance policies (Drake et al , 2006). Theoretical frameworks propose that risk governance has a significant impact on supervising and managing risks (Nguyen and Dang, 2022; Caprio and Levine, 2002). Based on the findings, one perspective to consider is that, instead of focusing exclusively on controlling bank risk, shareholders might benefit from exploring the restructuring of risk governance as a means to enhance the effectiveness of risk management (Nguyen and Dang, 2022; Srivastav and Hagendorff, 2016).…”

Section: Introductionmentioning

confidence: 99%

“…Theoretical frameworks propose that risk governance has a significant impact on supervising and managing risks (Nguyen and Dang, 2022; Caprio and Levine, 2002). Based on the findings, one perspective to consider is that, instead of focusing exclusively on controlling bank risk, shareholders might benefit from exploring the restructuring of risk governance as a means to enhance the effectiveness of risk management (Nguyen and Dang, 2022; Srivastav and Hagendorff, 2016). Based on the findings, one perspective to consider is that, instead of focusing exclusively on controlling bank risk, shareholders might benefit from exploring the restructuring of risk governance as a means to enhance the effectiveness of risk management (Nguyen and Dang, 2022; Quintyn and Chenard, 2004).…”

Section: Introductionmentioning

confidence: 99%

“…Based on the findings, one perspective to consider is that, instead of focusing exclusively on controlling bank risk, shareholders might benefit from exploring the restructuring of risk governance as a means to enhance the effectiveness of risk management (Nguyen and Dang, 2022; Srivastav and Hagendorff, 2016). Based on the findings, one perspective to consider is that, instead of focusing exclusively on controlling bank risk, shareholders might benefit from exploring the restructuring of risk governance as a means to enhance the effectiveness of risk management (Nguyen and Dang, 2022; Quintyn and Chenard, 2004). Additional research could expand upon this study by exploring a broader range of risk governance characteristics and analyzing their influence on regulatory adaptations within the banking sector (Nguyen and Dang, 2022).…”

Section: Introductionmentioning

confidence: 99%

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Risk governance and regulatory adjustments in the public commercial banks of OECD

Malik

2024

JFRC

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Purpose This study aims to explore the relationship between risk governance characteristics (chief risk officer [CRO], chief financial officer [CFO] and senior directors [SENIOR]) and regulatory adjustments (RAs) in Organization for Economic Cooperation and Development public commercial banks. Design/methodology/approach Using principal component analysis (PCA) and regression models, the research analyzes a representative data set of these banks. Findings A significant negative correlation between risk governance characteristics and RAs is found. Sensitivity analysis on the regulatory Tier 1 capital ratio and the total capital ratio indicates mixed outcomes, suggesting a complex relationship that warrants further exploration. Research limitations/implications The study’s limited sample size calls for further research to confirm findings and explore risk governance’s impact on banks’ capital structures. Practical implications Enhanced risk governance could reduce RAs, influencing banking policy. Social implications The study advocates for improved banking regulatory practices, potentially increasing sector stability and public trust. Originality/value This study contributes to understanding risk governance’s role in regulatory compliance, offering insights for policymaking in banking.

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The impact of risk governance structure on bank risk management effectiveness: evidence from ASEAN countries

Cited by 41 publications

References 95 publications

The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter?

The impact of COVID-19 on firm risk and performance in MENA countries: Does national governance quality matter?

Corporate Governance, Firm Characteristics and Firm Performance: Empirical Evidence from Vietnam.

Risk governance and regulatory adjustments in the public commercial banks of OECD

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