Influence of CEO remuneration and gender diversity on risk-taking patterns in Malaysia’s dual banking system

This research investigates the influence of CEO remuneration and gender diversity on bank risk-taking patterns within Malaysia's Dual Banking system. Malaysia's banking sector operates within a unique framework that encompasses both Islamic and conventional banking institutions. Against th...

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Bibliographic Details
Main Authors: Chin, Sze Qi, Lee, Chun Hong, Seow, Kit Chong, Foo, Valerie Win Qin
Format: Final Year Project / Dissertation / Thesis
Published: 2024
Subjects:
Online Access:http://eprints.utar.edu.my/6359/1/Chin_Sze_Qi_LEAD.pdf
http://eprints.utar.edu.my/6359/
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Summary:This research investigates the influence of CEO remuneration and gender diversity on bank risk-taking patterns within Malaysia's Dual Banking system. Malaysia's banking sector operates within a unique framework that encompasses both Islamic and conventional banking institutions. Against this backdrop, understanding the interplay between executive compensation structures, gender composition in leadership, and risk-taking patterns becomes essential for comprehending the dynamics of financial stability and resilience. Besides that, based on agency theory and capital buffer theory, this study seeks to determine the influence of CEO remuneration, gender diversity and capital regulation on risk-taking patterns in Malaysia Dual Banking system. This study is using EViews and Stata to conduct data analysis. This paper applied times series data and cross-sectional data, which are include five conventional bank and five Islamic banks during the period of 2010- 2020. The result shows that capital regulation and CEO remuneration had a significant relationship on bank risk-taking patterns in conventional bank, however gender diversity is insignificant. For Islamic bank, CEO remuneration, gender diversity and capital regulation had an insignificant on bank risk-taking pattern in Islamic bank.