THE IMPACT OF OWNERS BEHAVIOUR TOWARDS RISK TAKING BY PAKISTANI BANKS: MEDIATING ROLE OF PROFITABILITY
THE IMPACT OF OWNERS BEHAVIOUR TOWARDS RISK TAKING BY PAKISTANI BANKS: MEDIATING ROLE OF PROFITABILITY
Author(s): Muhammad Sajjad Hussain, Muhammad Muhaizam Mosa, Abdelnasser OmranSubject(s): Economy, National Economy, Business Economy / Management
Published by: Universitatea SPIRU HARET - Faculty of Accounting and Financial Management
Keywords: Profitability; Ownership Structure; Regulation; Risk taking; Banks of Pakistan;
Summary/Abstract: This study determines the mediating impact of profitability on owners’ behaviour and risktaking by Pakistani banks. Many of the previous studies mentioned that as far as ownership structure is going to be private, the risk-taking activities are going to reduce because less agency issues but this situation does not exist in case of Pakistani banks. Pakistani banks show different scenario which clearly highlights the issue of relationship interruption and also creates the need of mediator to explain this phenomenon. This study concluded that profitability/financial performance mediate the relationship between owner’s behavior and risk taking activities of the banks because profits have the characteristics to change owner’s behavior regarding regulations implementation and risk taking activities of financial institutions.
Journal: Journal of Academic Research in Economics (JARE)
- Issue Year: 10/2018
- Issue No: 3
- Page Range: 455-465
- Page Count: 11
- Language: English
- Content File-PDF