Abstract
This study assesses risk-taking and investigates the effect of internal
governance mechanisms and ownership structure on risk-taking in Tunisia
banks. We collected data from the banks listed on the Tunisian Stock
Exchanges from 2009–2019. Our results show that credit risk is the leading
risk to which Tunisian banks are exposed. The board size positively affects
risk-taking. The concentration of bank ownership increases liquidity and credit
risk-taking, while the participation of the government in bank ownership
increases insolvency and credit risk-taking. Risk-taking also is positively
associated with profitability and capital adequacy ratio (CAR). Investors may
find this study helpful as it analyses the effect of board attributes and
ownership structure on bank risk-taking in a developing country. Tunisian
banks may use our findings to improve the quality of corporate governance mechanisms and risk-taking practices. Regulators in Tunisia and other
developing countries can use our results to enhance internal governance
regulations/guidelines.
governance mechanisms and ownership structure on risk-taking in Tunisia
banks. We collected data from the banks listed on the Tunisian Stock
Exchanges from 2009–2019. Our results show that credit risk is the leading
risk to which Tunisian banks are exposed. The board size positively affects
risk-taking. The concentration of bank ownership increases liquidity and credit
risk-taking, while the participation of the government in bank ownership
increases insolvency and credit risk-taking. Risk-taking also is positively
associated with profitability and capital adequacy ratio (CAR). Investors may
find this study helpful as it analyses the effect of board attributes and
ownership structure on bank risk-taking in a developing country. Tunisian
banks may use our findings to improve the quality of corporate governance mechanisms and risk-taking practices. Regulators in Tunisia and other
developing countries can use our results to enhance internal governance
regulations/guidelines.
| Original language | English |
|---|---|
| Pages (from-to) | 361-382 |
| Number of pages | 21 |
| Journal | International Journal of Corporate Governance |
| Volume | 13 |
| Issue number | 4 |
| Publication status | Published - 12 Jul 2023 |
Keywords
- Internal governance mechanisms
- Ownership structure
- Risk-taking
- principal component analysis
- Tunisia.