Determinants of banks' risk-taking in Iran with emphasis on ownership structure

Document Type : Research Paper

Authors

1 Assistant Prof., Dep. of Finance and Banking, Faculty of Management and Accounting, Allameh Tabatab'i University, Tehran, Iran

2 Master of Islamic Banking, Faculty of Management and Accounting, Allameh Tabatab'i University, Tehran, Iran

Abstract

Abstract: The purpose of this paper is to examine the impact of the determinants of risk-taking in the banking industry in iran with a special emphasis on ownership structure variable.. To do so, a panel data set of 18 banks over the periods of 2009- 2014 is being collected and used. Using panel data estimation methods, indicators associated in credit risk and stability is regressed on ownership structure variable and a set of other explanatory and controlling variables. The findings showed that in general banks with high ownership concentration are at higher risk. Also, the concentration of ownership in private banks caused to increase the risk and at the same time reduce the stability indicator while state-owned banks show similarly, an increase in the risk but with less intensity and an increase in the stability contrary to private banks.

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References

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Financial Research Journal
Volume 19, Issue 1
2017
Pages 80-61

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