Department of Humanities, Lahijan Branch, Islamic Azad University, Lahijan, Iran
Abstract: (4192 Views)
This study investigates the moderating effect of firm size in the relationship between corporate governance (board size, board independence and ownership concentration) and banks’ risk-taking (insolvency risk and credit risk). Secondary data (annual reports) was collected from a sample of 21 Malaysian commercial banks covering the 2005–2014 accounting period. An empirical model using pooled ordinary least squares (OLS) and generalized method of moments (GMM) was used to analyze the data. The results indicate that board size, board independence and ownership concentration negatively associate with bank risk taking. In addition, the study shows that firm size moderates relationship between corporate governance and risk-taking.
Mohammadi Nodeh F, Ahmadimousaabad A, Mohammadi Nodeh A. Firm Size as a Moderator between Corporate Governance and Risk-Taking in Malaysian Banks. International Journal of Applied Operational Research 2018; 8 (3) :1-8 URL: http://ijorlu.liau.ac.ir/article-1-563-en.html