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Review of ownership structures and banking efficiency: Implication to ASEAN-5

Ownership structure is known as the distribution of equity with relation to votes, capital and the identity of equity owners (Holderness et al., 1999). Ownership structure served as an important element in corporate governance by influencing the type of incentives managers receives from the firm. Th...

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Main Authors: Chan, Sok Gee, Abd Karim, Mohd Zaini
Format: Conference or Workshop Item
Language:English
Published: 2007
Subjects:
HG Finance
Online Access:http://repo.uum.edu.my/2400/1/Chan_Sok_Gee.pdf
http://repo.uum.edu.my/2400/
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spelling my.uum.repo.24002011-02-21T10:46:11Z http://repo.uum.edu.my/2400/ Review of ownership structures and banking efficiency: Implication to ASEAN-5 Chan, Sok Gee Abd Karim, Mohd Zaini HG Finance Ownership structure is known as the distribution of equity with relation to votes, capital and the identity of equity owners (Holderness et al., 1999). Ownership structure served as an important element in corporate governance by influencing the type of incentives managers receives from the firm. This paper reviews recent studies on the effect of ownership structure on banking efficiency in the developing countries with the focus on ASEAN countries. Review of previous studies clearly indicates that types of ownerships did exert some influences towards the performance of the banks in terms of efficiency. Even though publicly-owned banks operated in an economically inefficiency environment, it is undeniable that the existence of publicly-owned banks are needed especially in economically less stable countries. This is because the government-owned banks or the state-owned banks can act as a catalyst to ensure the development of certain priority sectors that are believed to contribute to the long run economic growth of the countries. Besides that, the existence of state-owned banks and government-ownership is crucial for the countries to have a balance social and economic objective. In addition, countries need to encourage the entry for foreign participants into the banking sectors to improve the quality and availability of the financial services towards the domestic financial market (Levine, 1996). The entry will encourage domestic banks to compete more efficiently in terms of costs and profits in order to survive in this environment. The spillover effects in terms of technology brought by the foreign participant will enable the creation of a more modern banking environment in the host countries. Not only that, with a balance combination of state-, privately-, and foreign-owned banks, it is believed that the banking industry in the developing countries will be able to survive in the competitive environment while helping the government effectively implement the macroeconomics policies in the long run. 2007 Conference or Workshop Item NonPeerReviewed application/pdf en http://repo.uum.edu.my/2400/1/Chan_Sok_Gee.pdf Chan, Sok Gee and Abd Karim, Mohd Zaini (2007) Review of ownership structures and banking efficiency: Implication to ASEAN-5. In: International Economic Conference on Trade and Industry (IECTI) 2007, 3 - 5 December 2007, Bayview Hotel Georgetown, Penang. (Unpublished)
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Chan, Sok Gee
Abd Karim, Mohd Zaini
Review of ownership structures and banking efficiency: Implication to ASEAN-5
description Ownership structure is known as the distribution of equity with relation to votes, capital and the identity of equity owners (Holderness et al., 1999). Ownership structure served as an important element in corporate governance by influencing the type of incentives managers receives from the firm. This paper reviews recent studies on the effect of ownership structure on banking efficiency in the developing countries with the focus on ASEAN countries. Review of previous studies clearly indicates that types of ownerships did exert some influences towards the performance of the banks in terms of efficiency. Even though publicly-owned banks operated in an economically inefficiency environment, it is undeniable that the existence of publicly-owned banks are needed especially in economically less stable countries. This is because the government-owned banks or the state-owned banks can act as a catalyst to ensure the development of certain priority sectors that are believed to contribute to the long run economic growth of the countries. Besides that, the existence of state-owned banks and government-ownership is crucial for the countries to have a balance social and economic objective. In addition, countries need to encourage the entry for foreign participants into the banking sectors to improve the quality and availability of the financial services towards the domestic financial market (Levine, 1996). The entry will encourage domestic banks to compete more efficiently in terms of costs and profits in order to survive in this environment. The spillover effects in terms of technology brought by the foreign participant will enable the creation of a more modern banking environment in the host countries. Not only that, with a balance combination of state-, privately-, and foreign-owned banks, it is believed that the banking industry in the developing countries will be able to survive in the competitive environment while helping the government effectively implement the macroeconomics policies in the long run.
format Conference or Workshop Item
author Chan, Sok Gee
Abd Karim, Mohd Zaini
author_facet Chan, Sok Gee
Abd Karim, Mohd Zaini
author_sort Chan, Sok Gee
title Review of ownership structures and banking efficiency: Implication to ASEAN-5
title_short Review of ownership structures and banking efficiency: Implication to ASEAN-5
title_full Review of ownership structures and banking efficiency: Implication to ASEAN-5
title_fullStr Review of ownership structures and banking efficiency: Implication to ASEAN-5
title_full_unstemmed Review of ownership structures and banking efficiency: Implication to ASEAN-5
title_sort review of ownership structures and banking efficiency: implication to asean-5
publishDate 2007
url http://repo.uum.edu.my/2400/1/Chan_Sok_Gee.pdf
http://repo.uum.edu.my/2400/
_version_ 1644278225673650176
score 13.211869

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