The role of state and foreign owners in corporate risk-taking: Evidence from privatization

Boubakri, Narjess; Cosset, Jean Claude; Saffar, Walid

doi:10.1016/j.jfineco.2012.12.007

Cited by 582 publications

(178 citation statements)

References 51 publications

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“…This study differs from the research conducted by Boubakri et al (2013) and Su and Lee (2013) in terms of the samples used. Boubakri et al (2013) used a sample of newly privatized Advances in Economics, Business and Management Research,volume 36 companies, while in this study the samples are public companies in the manufacturing sector from 2013 to 2015.…”

Section: Introductioncontrasting

confidence: 56%

“…Several previous studies have examined this issue, such as Boubakri et al, (2013) who examined the influence of foreign and government ownership upon the degree of risk-taking in a sample of 57 countries. The results of this study indicated a negative effect from government ownership and the positive impact of foreign ownership upon companies' risk-taking behaviour.…”

Section: Introductionmentioning

confidence: 99%

“…Boubakri et al (2013) used a sample of newly privatized Advances in Economics, Business and Management Research,volume 36 companies, while in this study the samples are public companies in the manufacturing sector from 2013 to 2015. The manufacturing sector significantly promotes industrial development in a country and has an important role in the national economy.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Ownership Structure and Company's Risk Taking Behaviour

Langit¹,

Adhariani²

2017

Proceedings of the International Conference on Business and Management Research (ICBMR-17)

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This study aims to determine the effect of ownership structure on risk-taking behaviour among the companies listed on the Indonesia Stock Exchange in the period 2013 to 2015 with a total of 390 firm observations. Companies' risk-taking is measured through income volatility over five years. There are two types of corporate ownership structures investigated in this study: family ownership and foreign ownership. By using fixed effect panel regression, the results showed that both ownership structures have a significant negative effect upon the company's risk taking behaviour, which implies that family and foreign ownership can function effectively to mitigate excessive risk-taking behaviour in a company. Type of paper: Empirical

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Section: Introductioncontrasting

confidence: 56%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Ownership Structure and Company's Risk Taking Behaviour

Langit¹,

Adhariani²

2017

Proceedings of the International Conference on Business and Management Research (ICBMR-17)

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“…This dummy variable equals 1 if the bank is a private commercial bank and 0 for otherwise. Ownership structure affects the principal-agent relationships that influence profitability of banks (Barth, Caprio, & Levine, 1999;Boubakri, Cosset, & Saffar, 2013;Agusman, Cullen, Gasbarro, Monroe, & Zumwalt, 2013;Iannotta, Nocera, & Sironi, 2013). Based on the previous literature it is found that, the effect of differences in bank ownership on profitability is indeterminate, and there is even disagreement among the empirical studies.…”

Section: Independent Variables: Determinants Of Profitabilitymentioning

confidence: 99%

Determinants of Bank Profitability: Empirical Evidence from Bangladesh

Rahman

Hamid²,

Khan³

2015

IJBM

103

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This study attempts to investigate capital strength, credit risk, ownership structure, bank size, non-interest income, cost efficiency, off-balance sheet activities, liquidity as potential bank specific determinants as well as growth in gross domestic products, inflation as potential macroeconomic determinants of bank profitability by taking 25 commercial banks from Bangladesh for a period ranges from 2006 to 2013. Three different measures of profitability namely return on assets (ROA), net interest margin over total assets (NIM) and return on equity (ROE) are used in the study. The empirical findings suggest that capital strength (both regulatory capital and equity capital) and loan intensity has positive and significant impact on profitability. Results also show that cost efficiency and off-balance sheet activities have negative and significant impact on bank profitability. The impact of other variables is not uniform in respect of different measures of profitability. Non-interest income, credit risk and GGDP are found as important determinant for NIM. Size has a positive and significant impact on ROA. Finally inflation has a negative and significant impact on ROA and ROE.

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“…Ownership structure affects the principle-agent relationship which influences risk taking behavior of banks (Agusman, Cullen, Gasbarro, Monroe, & Zumwalt, 2014;Boubakri, Cosset, & Saffar, 2013;Iannotta, Nocera, & Sironi, 2013;Levine, Caprio, & Barth, 1999).…”

Section: Ownership Structurementioning

confidence: 99%

Factors affecting the Risk-taking Behavior of Commercial Banks in Bangladesh

Rahman

Uddin

Moudud‐Ul‐Huq

2015

AFA

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This study examines the capital regulation, profitability, bank size, liquidity, off-balance sheet activities, charter value, dividend payout ratio and macroeconomic variables as determinants of bank risk (credit risk and overall risk) by using information from 30 Bangladeshi commercial banks over a period of [2005][2006][2007][2008][2009][2010][2011][2012][2013]. We use Generalized Methods of Moments (GMM) in an unbalanced dynamic panel data framework. The empirical results show a negative relation between credit risk and capital regulation and a mixed relation between overall risk and capital regulation. We find a negative relation between credit risk and profitability and a positive relation between overall risk and profitability. The results also show that larger banks take higher credit and overall risk. It is also evident that off-balance sheet activities are positively related with both credit and overall risk. We also find that banks with high liquidity take more credit risk. Negative association is found between credit risk and charter value and mixed evidence is found on the relationship between charter value and overall risk. We also observe that dividend payout ratio is not an important factor of bank risk. With regard to the impact of macroeconomic variables we find no significant impact on risk. Finally we find that lagged risk is an important determinant of bank risk.

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The role of state and foreign owners in corporate risk-taking: Evidence from privatization

Cited by 582 publications

References 51 publications

Ownership Structure and Company's Risk Taking Behaviour

Ownership Structure and Company's Risk Taking Behaviour

Determinants of Bank Profitability: Empirical Evidence from Bangladesh

Factors affecting the Risk-taking Behavior of Commercial Banks in Bangladesh

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