The impact of ownership structure on bank risk taking – theoretical outlook

Abstract

Ownership structure plays a more relevant role in determining corporate governance because it influences the motivation of executives and hence firms' effectiveness. This paper focuses on the main theories of the relationship between ownership structure and bank risk taking. Moreover, this paper summaries the literature review on impact of ownership structure on bank risk taking, generally in the world and particularly in Vietnam. Based on the systematization of the theoretical and empirical studies related to the impact of ownership structure on bank risk taking, the paper will help researchers, policy makers and bank managers understanding this relationship more clearly. And from the understanding, they can change or re-structure bank ownership effectively to limit the risks in Vietnamese banking system.