Does Capital Adequacy Ratio Moderates the Relationship Between Ownership Structure and Performance?

Abstract

This research aims to investigate the impact of the three-ownership structure (government, institutional and family) with capital adequacy ratio as the moderating element towards bank performance as measured by return on asset (ROA), return on equity (ROE), and market performance represented by Tobin’s Q, along with the five control variables. Data from eight Large Domestically-owned Commercial Banks in Malaysia for the period that runs from 2000 to 2012 are used in this research. Hierarchical moderated multiple regressions methods are applied in this study. Results suggest that capital adequacy is significant as moderating factor of the three ownership structures towards the three bank performances regardless of the mix directions. However, the interaction between the three-ownership structure and capital adequacy are also found to be significant only towards return on equity (ROE).

Authors and Affiliations

Nasyra Ab. Jamil, Rasidah Mohd. Said

Keywords

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  • EP ID EP574043
  • DOI 10.6007/IJARBSS/v8-i10/5300
  • Views 68
  • Downloads 0

How To Cite

Nasyra Ab. Jamil, Rasidah Mohd. Said (2018). Does Capital Adequacy Ratio Moderates the Relationship Between Ownership Structure and Performance?. International Journal of Academic Research in Business and Social Sciences, 8(10), 1305-1319. https://europub.co.uk/articles/-A-574043