Finance and Banking

Risk Management and Corporate Governance: a Case Study; Some Asian banks. Finance and Banking

Authors

Amir Hossein Erza 1
Sara Heidari 2

1 Assistant Professor, Department of Finance and Banking, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

2 Ph.D. Student, Department of Financial Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran

https://doi.org/10.22054/fiba.2024.77786.1012
Abstract
This research examines how the characteristics of the risk committee and the chief risk manager affect the risk-taking behavior of some Asian banks after the global financial crisis in 2008. The period examined in this research is from 2010 to 2021 and 1243 observations were used for 185 banks. The obtained results show that there is a negative and significant relationship between the mechanisms of risk governance and risk taking, and this relationship is stronger for private banks (POB) than for public banks (SOB). It was also found that risk governance mechanisms have a positive effect on the performance of POBs but not on the performance of SOBs. Finally, the results of this research show the role of risk governance mechanisms in controlling excessive risk taking and improving the effectiveness of risk management and performance of some Asian banks. Of course, in this case, differences were observed between SOB and POB.

Keywords

Asia banks
Bank Performance
Risk governance
Risk-taking
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