Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia

Research Article

The Impact of Risk Governance and Ownership Structure on Bank Risk-Taking Behavior in ASEAN-5 Banks for The Period 2012 – 2021

Download27 downloads
  • @INPROCEEDINGS{10.4108/eai.21-9-2023.2346176,
        author={Fira F  Indrawan and Dewi  Hanggraeni},
        title={The Impact of Risk Governance and Ownership Structure on Bank Risk-Taking Behavior in ASEAN-5 Banks for The Period 2012 -- 2021},
        proceedings={Proceedings of the 2nd International Conference on Contemporary Risk Studies, ICONIC-RS 2023, 21-22 September 2023, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICONIC-RS},
        year={2024},
        month={6},
        keywords={risk governance ownership structure risk taking},
        doi={10.4108/eai.21-9-2023.2346176}
    }
    
  • Fira F Indrawan
    Dewi Hanggraeni
    Year: 2024
    The Impact of Risk Governance and Ownership Structure on Bank Risk-Taking Behavior in ASEAN-5 Banks for The Period 2012 – 2021
    ICONIC-RS
    EAI
    DOI: 10.4108/eai.21-9-2023.2346176
Fira F Indrawan1,*, Dewi Hanggraeni2
  • 1: Universitas Indonesia
  • 2: Universitas Pertamina
*Contact email: fira.indrawan@gmail.com

Abstract

This study analyzes how risk governance and ownership structure influence bank risk taking behavior in ASEAN-5 countries. The research sample consists of 34 banks from 2012 to 2021, using the panel data regression method. The results of the study show that risk governancehas a negative and significant impact on credit and liquidity risk. Meanwhile, it has a positive and insignificant impact on operational risk and a negative and significant impact on insolvency risk. Furthermore, ownership structure has a negative and insignificant impact on credit and operational risk but a positive and insignificant impact on liquidity and insolvency risk. Additionally, bank size seems to have a significant effect on credit, liquidity, operational, an insolvency risk. Thus, regulators and banks can optimize risk governance, particularly at risk committee meetings, by increasing the frequency of meetings on a periodic basis.