Impact of Characteristics of Board of Directors Towards Risk-Taking Level with Chinese Commercial Banks
Journal of Economics, Management and Trade · pp. 153–166 · Published 5 Dec 2023
10.9734/jemt/2023/v29i111170Abstract
Based on the situation that the overall economy is facing a huge shock due to COVID-19, China's banking sector plays an extremely important role as a provider of funds in the social economy and risk management is even more important. Therefore, this paper uses the Chinese commercial banks as a research sample of 730 from 2017 to 2021 and explores the moderating role of three board structure characteristics, namely, the board size, the combination of chairman and president, and the proportion of independent directors, on the relationship between banks' operation risk include market risk, credit risk and liquidity risk and risk-taking level in empirical approach method. The research findings revealed that: 1. liquidity ratio and cost-to-income ratio have a significant negative effect on the risk-taking level of commercial banks. 2. Board size has a negative moderating effect on the relationship between liquidity ratio and risk-taking level, which means that a larger board size can help reduce the effect of liquidity ratio on the risk-taking level of commercial banks. 3. Board size has a negative moderating effect on the risk-taking level of commercial banks. 4. The separation of chairman and president has a positive moderating effect on the relationship between liquidity ratio and risk-taking level, which means that having a different chairman and president may increase the impact of poor liquidity ratio on the risk-taking level of commercial banks. However, the cross-section of the cost-of-income ratio and independent director ratio has no significant effect on the risk-taking level. This paper also makes recommendations based on the findings of the study.
References (3)
Cited by 2
2 citations reported by external sources — individual citing-article records aren't available to list yet.
Related research
- Corporate Governance and Financial Distress: A Comprehensive Analysis of Indonesian Manufacturing Companies — shares topic coverage
- Corporate Governance Mechanism and Financial Ratios on the Indonesia Stock Exchange: How do they Affect Financial Distress? — shares topic coverage
- Examining the Power of Accumulation: A Case Study of the Lavera Project by Ambala Farmers Producer Company Limited in Haryana, India — shares topic coverage
- The Impact of Intellectual Capital and Corporate Governance on Financial Performance in Indonesia’s Financing Services Sector — shares topic coverage
- Role of Women in Indonesian Banking Governance and Its Impact on Financial Metrics and Risk — shares topic coverage
Article metrics
Real usage data collected on this platform.
5
Page views
0
PDF downloads
0
Outbound clicks
2
Citations
Views over time
Views by country
Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".
Traffic sources
Referring site, by host.
Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.