Майстер Анна Константиновна
The Influence of Financial Architecture on the Level of Risk in Developed and Emerging Countries
Стратегическое управление финансами фирмы
The majority of studies, which explore the determinants of bank risk level, concentrate on the influence of the separate components like capital structure, corporate governance and ownership structure. In this study, we look at bank risk drivers from the aggregative point of view – we reveal that financial architecture significantly influences the bank risk exposure. The risk level is measured by the ratio of risk-weighted assets to total assets. We employ cluster analysis to determine clusters of banks that differ consistently by the level of risk. The clusters are formed on the basis of capital structure, ownership structure and corporate governance indicators of a particular bank. We use a data of banks for the period 2010-2015 in developed and emerging markets. Finally, we show that there are two distinct clusters of banks. The banks with higher level of risk are described by having higher level of ownership concentration, smaller and less independent board, lower institutional and higher level of insider ownership.