Albaity, Mohamed and Noman, Abu Hanifa Md and Mallek, Ray Saadaoui (2021) Trustworthiness, good governance and risk taking in MENA countries. Borsa Istanbul Review, 21 (4). pp. 359-374. ISSN 2214-8450, DOI https://doi.org/10.1016/j.bir.2020.12.002.
Full text not available from this repository.Abstract
This study investigates the role of trustworthiness and governance quality in banks' risk-taking behavior, along with other bank-specific and country-specific variables commonly studied. By employing a dataset comprising 202 banks in 16 countries in the Middle East and North Africa (MENA) from 2011 to 2017 and a two-step generalized method of moments methodology, trustworthiness was tested directly in relation to risk taking and indirectly through the quality of the channel of governance. Our results indicate that trustworthiness reduces risk-taking, whereas governance quality exacerbates the risk-taking behavior of MENA banks. However, the effect of trustworthiness on risk-taking changes with good governance, indicating the substitution effect of trust on risk-taking because of the existence of weak formal institutions in MENA countries. The study recommends significant policies that can be implemented to promote public trust and bank stability. Copyright (C) 2020, Borsa Istanbul Anonim Sirketi. Production and hosting by Elsevier B.V.
| Item Type: | Article |
|---|---|
| Funders: | UNSPECIFIED |
| Uncontrolled Keywords: | Confidence; MENA; Risk-taking; Trustworthiness |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HF Commerce > Business |
| Divisions: | Faculty of Business and Economics > Dept of Finance and Banking |
| Depositing User: | Ms Zaharah Ramly |
| Date Deposited: | 01 Jun 2022 07:56 |
| Last Modified: | 01 Jun 2022 07:56 |
| URI: | http://eprints.um.edu.my/id/eprint/27223 |
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