| Summary: | 碩士 === 雲林科技大學 === 財務金融系碩士班 === 96 === The main purpose of this study is to examine the relationship among corporate governance, competition and bank risk-taking/profitability. Data used in the study includes financial statements of 697 banks from 34 countries in the 2006 in the Bankscope database. The empirical model uses Z-score and net income (NI) as dependent variables. The Z-score is defined as bank risk-taking and NI as profitability. Moreover, the explanatory variables of the model are corporate governance, which includes some variables of bank ownership structure, and competition, which includes three policy variables affecting bank competition.
By using Z-score as the dependent variable, the empirical evidence shows that corporate governance may weaken the relationship between competition and bank risk-taking. In addition, it is found that the standard deviation of asset returns is most important factor to affect bank risk-taking. Moreover, both corporate governance and competition are substitutes to affect bank risk-taking. The evidence also shows that there exists a U-shape relationship between market concentration and bank risk-taking.
By using NI as the dependent variable, the empirical evidence shows that corporate governance may make the relationship between competition and profitability stronger. Further, both corporate governance and competition are substitutes to affect bank profitability. Finally, empirical results show that there exists a U-shape relationship between large shareholder and profitability.
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