Please use this identifier to cite or link to this item: http://bura.brunel.ac.uk/handle/2438/29563
Title: Institutional mechanisms, ownership and bank risk-taking during crises
Authors: Anh Vo, TT
Joseph, NL
Keywords: bank risk-taking;investor protection;institutional mechanisms;ultimate ownership;bank regulation;bivariate copula function;crisis regimes
Issue Date: 31-Jul-2024
Publisher: Elsevier
Citation: Anh Vo, T.T. and Joseph, N.L. (2024) 'Institutional mechanisms, ownership and bank risk-taking during crises', The British Accounting Review, 57 (3), 101451, pp. 1 - 27. doi: 10.1016/j.bar.2024.101451.
Abstract: Previous studies indicate that prior period investor protection, quality of government/institution and ownership have little to no influence on bank risk-taking around crisis periods. Using contemporaneous data for 40 countries, we show that institutional mechanisms, investor protection, bank regulation and supervision (BRS) rules, and ownership, reduced bank risk-taking around the Global Financial Crisis (GFC) and the Eurozone Crisis/Sovereign Debt Crisis periods. Institutional mechanisms have the strongest risk-reducing impacts on bank risk-taking, whereas foreign and government ownership have the weakest impacts. The greater the distance from bank default the lower the likelihood of crisis regimes. Investor protection increased (decreased) the likelihood of the GFC (Eurozone Crisis) regimes. Government ownership increased (decreased) the likelihood of the GFC (Eurozone Crisis) regimes. Using a generalized bivariate copula function, we untangle the relation between crisis regimes and bank risk-taking by showing that higher risk-taking increases the likelihood of crisis regimes.
Description: Data availability: Data will be made available on request.
JEL: G01; G21; G28; G32.
Supplementary data are available online at: https://www.sciencedirect.com/science/article/pii/S0890838924002154?via%3Dihub#appsec1 .
URI: https://bura.brunel.ac.uk/handle/2438/29563
DOI: https://doi.org/10.1016/j.bar.2024.101451
ISSN: 0890-8389
Other Identifiers: ORCiD: Nathan Lael Joseph https://orcid.org/0000-0002-2182-0847
Article number: 101451
Appears in Collections:Dept of Economics and Finance Research Papers

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