Trustworthiness, good governance and risk taking in MENA countries
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...
Saved in:
Main Authors: | , , |
---|---|
Format: | Article |
Published: |
Elsevier
2021
|
Subjects: | |
Online Access: | http://eprints.um.edu.my/27223/ |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
my.um.eprints.27223 |
---|---|
record_format |
eprints |
spelling |
my.um.eprints.272232022-06-01T07:56:23Z http://eprints.um.edu.my/27223/ Trustworthiness, good governance and risk taking in MENA countries Albaity, Mohamed Noman, Abu Hanifa Md Mallek, Ray Saadaoui HC Economic History and Conditions Business 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. Elsevier 2021-12 Article PeerReviewed 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 <https://doi.org/10.1016/j.bir.2020.12.002>. 10.1016/j.bir.2020.12.002 |
institution |
Universiti Malaya |
building |
UM Library |
collection |
Institutional Repository |
continent |
Asia |
country |
Malaysia |
content_provider |
Universiti Malaya |
content_source |
UM Research Repository |
url_provider |
http://eprints.um.edu.my/ |
topic |
HC Economic History and Conditions Business |
spellingShingle |
HC Economic History and Conditions Business Albaity, Mohamed Noman, Abu Hanifa Md Mallek, Ray Saadaoui Trustworthiness, good governance and risk taking in MENA countries |
description |
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. |
format |
Article |
author |
Albaity, Mohamed Noman, Abu Hanifa Md Mallek, Ray Saadaoui |
author_facet |
Albaity, Mohamed Noman, Abu Hanifa Md Mallek, Ray Saadaoui |
author_sort |
Albaity, Mohamed |
title |
Trustworthiness, good governance and risk taking in MENA countries |
title_short |
Trustworthiness, good governance and risk taking in MENA countries |
title_full |
Trustworthiness, good governance and risk taking in MENA countries |
title_fullStr |
Trustworthiness, good governance and risk taking in MENA countries |
title_full_unstemmed |
Trustworthiness, good governance and risk taking in MENA countries |
title_sort |
trustworthiness, good governance and risk taking in mena countries |
publisher |
Elsevier |
publishDate |
2021 |
url |
http://eprints.um.edu.my/27223/ |
_version_ |
1735409515057119232 |
score |
13.154949 |