Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries

This paper aims to addresses the impact of corruption, anti-corruption commission, and government intervention on bank’s risk-taking using banks in Asian Countries such as  Indonesia, Malaysia, Thailand, and South of Korea during the period 1995-2016. This paper uses corruption variable, bank-specif...

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Main Authors: Rizky Maulana Nurhidayat, Rofikoh Rokhim
Format: Article
Language:English
Published: Universitas Negeri Semarang 2018-09-01
Series:Jurnal Dinamika Manajemen
Subjects:
Online Access:https://journal.unnes.ac.id/nju/index.php/jdm/article/view/15951
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author Rizky Maulana Nurhidayat
Rofikoh Rokhim
author_facet Rizky Maulana Nurhidayat
Rofikoh Rokhim
author_sort Rizky Maulana Nurhidayat
collection DOAJ
description This paper aims to addresses the impact of corruption, anti-corruption commission, and government intervention on bank’s risk-taking using banks in Asian Countries such as  Indonesia, Malaysia, Thailand, and South of Korea during the period 1995-2016. This paper uses corruption variable, bank-specific variables, macroeconomic variables, dummy variables and interaction variable to estimate bank’s risk-taking variable. Using data from 76 banks in Indonesia, Malaysia, Thailand and South Korea over 21 years, this research finds consistent evidence that higher level of corruption and government intervention in crisis-situation will increase the risk-taking behaviour of banks. In the other hand, bank risk-taking behaviour minimized by the existence of anti-corruption commission. In addition, this paper also finds that government intervention amplifies corruption’s effect on bank’s risk-taking behaviour because of strong signs of moral hazard and weaknesses in the governance and supervision.
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publishDate 2018-09-01
publisher Universitas Negeri Semarang
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spelling doaj-art-74a8d25eb1a64eb785c99d50c0fff7f62025-08-20T02:06:50ZengUniversitas Negeri SemarangJurnal Dinamika Manajemen2086-06682337-54342018-09-019222823710.15294/jdm.v9i2.159518277Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian CountriesRizky Maulana Nurhidayat0Rofikoh Rokhim1Universitas IndonesiaUniversitas IndonesiaThis paper aims to addresses the impact of corruption, anti-corruption commission, and government intervention on bank’s risk-taking using banks in Asian Countries such as  Indonesia, Malaysia, Thailand, and South of Korea during the period 1995-2016. This paper uses corruption variable, bank-specific variables, macroeconomic variables, dummy variables and interaction variable to estimate bank’s risk-taking variable. Using data from 76 banks in Indonesia, Malaysia, Thailand and South Korea over 21 years, this research finds consistent evidence that higher level of corruption and government intervention in crisis-situation will increase the risk-taking behaviour of banks. In the other hand, bank risk-taking behaviour minimized by the existence of anti-corruption commission. In addition, this paper also finds that government intervention amplifies corruption’s effect on bank’s risk-taking behaviour because of strong signs of moral hazard and weaknesses in the governance and supervision.https://journal.unnes.ac.id/nju/index.php/jdm/article/view/15951bank risk-takingcorruptiongovenrment intervention.
spellingShingle Rizky Maulana Nurhidayat
Rofikoh Rokhim
Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries
Jurnal Dinamika Manajemen
bank risk-taking
corruption
govenrment intervention.
title Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries
title_full Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries
title_fullStr Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries
title_full_unstemmed Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries
title_short Corruption and Government Intervention on Bank Risk-Taking: Cases of Asian Countries
title_sort corruption and government intervention on bank risk taking cases of asian countries
topic bank risk-taking
corruption
govenrment intervention.
url https://journal.unnes.ac.id/nju/index.php/jdm/article/view/15951
work_keys_str_mv AT rizkymaulananurhidayat corruptionandgovernmentinterventiononbankrisktakingcasesofasiancountries
AT rofikohrokhim corruptionandgovernmentinterventiononbankrisktakingcasesofasiancountries