How corporate governance and ownership affect banks’ risktaking in the MENA countries?

Abstract Purpose The purpose of this paper is to explore the relationship between corporate governance and risk-taking behaviour of banks operating in the Middle East and North African (MENA) countries. Design/methodology/approach In doing so, the authors use a data set covering 165 banks located in...

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Detalhes bibliográficos
Autores: Otero González, Luis, Alaraj, Rafat, Lado Sestayo, Rubén
Tipo de documento: artigo
Data de publicação:2020
País:España
Recursos:Universidad de Santiago de Compostela (USC)
Repositório:Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
Idioma:inglês
OAI Identifier:oai:minerva.usc.gal:10347/40610
Acesso em linha:https://hdl.handle.net/10347/40610
Access Level:Acceso aberto
Palavra-chave:Banks
Corporate governance
Ownership
Risk taking
Property rights
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spelling How corporate governance and ownership affect banks’ risktaking in the MENA countries?Otero González, LuisAlaraj, RafatLado Sestayo, RubénBanksCorporate governanceOwnershipRisk takingProperty rightsAbstract Purpose The purpose of this paper is to explore the relationship between corporate governance and risk-taking behaviour of banks operating in the Middle East and North African (MENA) countries. Design/methodology/approach In doing so, the authors use a data set covering 165 banks located in 13 MENA countries over the period 2005–2012 and apply dynamic panel data methodology. Findings The results show that good governance acting in the interests of shareholders could lead to excessive risk taking; in this sense, a conflict of interest between the stakeholders, interested in the solvency of the financial system, and shareholders, trying to maximise their benefit, may occur. The greater risk can be reinforced by the governance of the country and a strong macro governance framework can incentivise a higher risk exposure in banks, showing the influence of bank regulation and law enforcement on the risks taken by banks. Originality/value To the best of the authors’ knowledge, this is the first paper showing that corporate governance is relevant for explaining risk taking at the country and bank levels in MENA countries.EmeraldUniversidade de Santiago de Compostela. Departamento de Economía Financeira e Contabilidade20202020-01-0120202020-01-01journal articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10347/40610reponame:Minerva. Repositorio Institucional de la Universidad de Santiago de Compostelainstname:Universidad de Santiago de Compostela (USC)Inglésengopen accesshttp://purl.org/coar/access_right/c_abf2Copyright © 2019, Luis Otero, Rafat Alaraj and Ruben Lado-Sestayo. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence.http://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:minerva.usc.gal:10347/406102026-06-15T12:47:27Z
dc.title.none.fl_str_mv How corporate governance and ownership affect banks’ risktaking in the MENA countries?
title How corporate governance and ownership affect banks’ risktaking in the MENA countries?
spellingShingle How corporate governance and ownership affect banks’ risktaking in the MENA countries?
Otero González, Luis
Banks
Corporate governance
Ownership
Risk taking
Property rights
title_short How corporate governance and ownership affect banks’ risktaking in the MENA countries?
title_full How corporate governance and ownership affect banks’ risktaking in the MENA countries?
title_fullStr How corporate governance and ownership affect banks’ risktaking in the MENA countries?
title_full_unstemmed How corporate governance and ownership affect banks’ risktaking in the MENA countries?
title_sort How corporate governance and ownership affect banks’ risktaking in the MENA countries?
dc.creator.none.fl_str_mv Otero González, Luis
Alaraj, Rafat
Lado Sestayo, Rubén
author Otero González, Luis
author_facet Otero González, Luis
Alaraj, Rafat
Lado Sestayo, Rubén
author_role author
author2 Alaraj, Rafat
Lado Sestayo, Rubén
author2_role author
author
dc.contributor.none.fl_str_mv Universidade de Santiago de Compostela. Departamento de Economía Financeira e Contabilidade
dc.subject.none.fl_str_mv Banks
Corporate governance
Ownership
Risk taking
Property rights
topic Banks
Corporate governance
Ownership
Risk taking
Property rights
description Abstract Purpose The purpose of this paper is to explore the relationship between corporate governance and risk-taking behaviour of banks operating in the Middle East and North African (MENA) countries. Design/methodology/approach In doing so, the authors use a data set covering 165 banks located in 13 MENA countries over the period 2005–2012 and apply dynamic panel data methodology. Findings The results show that good governance acting in the interests of shareholders could lead to excessive risk taking; in this sense, a conflict of interest between the stakeholders, interested in the solvency of the financial system, and shareholders, trying to maximise their benefit, may occur. The greater risk can be reinforced by the governance of the country and a strong macro governance framework can incentivise a higher risk exposure in banks, showing the influence of bank regulation and law enforcement on the risks taken by banks. Originality/value To the best of the authors’ knowledge, this is the first paper showing that corporate governance is relevant for explaining risk taking at the country and bank levels in MENA countries.
publishDate 2020
dc.date.none.fl_str_mv 2020
2020-01-01
2020
2020-01-01
dc.type.none.fl_str_mv journal article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://hdl.handle.net/10347/40610
url https://hdl.handle.net/10347/40610
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
http://creativecommons.org/licenses/by/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Emerald
publisher.none.fl_str_mv Emerald
dc.source.none.fl_str_mv reponame:Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
instname:Universidad de Santiago de Compostela (USC)
instname_str Universidad de Santiago de Compostela (USC)
reponame_str Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
collection Minerva. Repositorio Institucional de la Universidad de Santiago de Compostela
repository.name.fl_str_mv
repository.mail.fl_str_mv
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