MINISTRY OF EDUCATION AND TRAINING OF VIETNAM UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYỄN QUANG KHẢI CORPORATE GOVERNANCE AND BANK RISK IN ASEAN COUNTRIES PHD THESIS HO CHI MINH CITY-2022 MINISTRY OF EDUCATION AND TRAINING OF VIETNAM UNIVERSITY OF ECONOMICS HO CHI MINH CITY NGUYỄN QUANG KHẢI CORPORATE GOVERNANCE AND BANK RISK IN ASEAN COUNTRIES SPECIALIZATION: FINANCE AND BANKING CODE: 9340201 PHD THESIS SUPERVISORS: LÊ HỒ AN CHÂU, Ph.D PHẠM PHÚ QUỐC, Ph.D HO CHI MINH CITY-2022 iii STATEMENT OF AUTHORSHIP My name is Nguyen Quang Khai, PhD student in the major of Banking at University of Economics Ho Chi Minh City (UEH) I declare that ―this thesis is my own work, and except where due reference is made, contains no material previously written or published by any other people I ensure that this thesis has not been, and will not be, submitted in whole or in part to any ther educational institution for the award of any other degree.‖ Ho Chi Minh City, 2022 Nguyen Quang Khai iv ACKNOWLEDGMENTS First, I would like to thank my academic advisers Dr Le Ho An Chau and Dr Pham Phu Quoc for their enthusiastic help, instruction, intensive support, care, and advice on my research They have granted me the autonomy to conduct and publish my research while continuing to review and provide me with exhaustive valuable feedback and encouragement Second, I would like to sincerely thank the School of Banking and the UEH university for providing me with the best study and research environment I would also like to thank my professors, the journal‘s editor, and the independent external reviewers for giving me numerous useful comments on my research All their comments helped me improve and complete my thesis Lastly, I am extremely grateful to my family for their love, support, and sacrifice, as well as to my friends and colleagues who have encouraged and supported me very much during the learning process, work, and completion of this thesis Ho Chi Minh City, 2022 Nguyen Quang Khai v TABLE OF CONTENTS STATEMENT OF AUTHORSHIP iii ACKNOWLEDGMENTS iv TABLE OF CONTENTS v ABBREVIATIONS x LIST OF TABLES xi LIST OF FIGURES .xii ABSTRACT xiii TÓM TẮT xv CHAPTER 1: INTRODUCTION 1.1 Introduction 1.2 Background and Motivation 1.2.1 Corporate governance and bank risk in ASEAN 1.2.2 Background of literature on corporate governance and bank risk 1.3 Research Objectives and Questions 16 1.4 Data and Research Design 18 1.5 Scope of Research 19 1.6 Contribution of the Thesis 19 1.7 Structure of the Thesis 21 CHAPTER 2: THEORY AND LITERATURE REVIEW 23 2.1 Introduction 23 2.2 Bank Risk and Risk Governance Structure 24 2.2.1 Bank risks 24 2.2.1.1 Risk and different types of risk within the banking sector 24 2.2.1.2 Bank risk-taking 26 2.2.1.3 Bank risk management effectiveness 26 2.2.2 Corporate governance and bank risk governance 28 2.2.2.1 Board of directors 30 2.2.2.2 Audit committee and external audit 31 2.2.2.3 Stand-alone risk committee 32 2.3 Bank Risk Governance Structure Theory and Evidence 33 vi 2.3.1 Scope of operation theory 34 2.3.2 Monitoring theory 35 2.3.3 Negotiation theory 37 2.3.4 Hypothesis related to RQ1 39 2.3.4.1 Risk governance structure and bank scope of operation 40 2.3.4.2 Risk governance structure and the trade-off between monitoring cost and benefit 41 2.3.4.3 Risk governance structure and CEO‘s negotiation power 43 2.4 Bank Risk-Taking Theory and Evidence 45 2.4.1 Moral hazard theory 46 2.4.2 Agency theory 50 2.4.3 Stakeholder theory 52 2.4.4 Institutional theory 53 2.4.5 Hypothesis related to RQ2 55 2.4.5.1 Risk governance structure and risk taking 55 2.4.5.2 Risk governance effectiveness and bank risk-taking 59 2.4.5.3 Institutional quality and the risk oversight role of risk governance 59 2.5 Bank Risk Management Theory and Evidence 60 2.5.1 Option theory 61 2.5.2 Hypothesis related to RQ3 61 2.6 Chapter Summary 62 CHAPTER 3: RESEARCH METHODOLOGY 64 3.1 Introduction 64 3.2 Research Data 65 3.3 Methodology for Determinants of Bank Risk Governance Structure (related to RQ1) 66 3.3.1 Variable measures 67 3.3.1.1 Measures of bank risk governance structure 67 3.3.1.2 Measures of ―scope of operation‖ 69 3.3.1.3 Measures of private benefits and monitoring costs 70 3.3.1.4 Measures of CEO‘s negotiation power 71 3.3.1.5 Measures of other control variables 71 vii 3.3.2 Empirical model and estimation methods 72 3.3.2.1 Empirical model 72 3.3.2.2 Estimation methods 76 3.4 Methodology for Relationship between Bank Risk Governance Structure and Risk-Taking (related to RQ2) 78 3.4.1 Variables measures 78 3.4.1.1 Measures of bank risk-taking 78 3.4.1.2 Measures of bank risk governance structure and its effectiveness 80 3.4.1.3 Measures of other control variables and interaction variables 84 3.4.2 Empirical model and estimation methods 87 3.4.2.1 Empirical model 87 3.4.2.2 Estimation methods 89 3.5 Methodology for the Relationship between Bank Risk Governance and Risk Management Effectiveness (related to RQ3) 90 3.5.1 Variable measures 90 3.5.1.1 Bank performance measures 90 3.5.1.2 Other variables 91 3.5.2 Empirical model and estimation method 93 3.5.2.1 Empirical model 93 3.5.2.2 Estimation methods 94 3.6 Chapter Summary 95 CHAPTER 4: EMPIRICAL RESULT AND DISCUSSION 97 4.1 Introduction 97 4.2 Descriptive Statistics and Correlation Matrix 97 4.2.1 Descriptive statistics 98 4.2.2 Correlation matrix 100 4.3 Determinants of Bank Risk Governance Structure: Empirical Results (RQ1) 103 4.3.1 Regression results for RQ1 104 4.3.1.1 Scope of operation and bank risk governance structure results 104 4.3.1.2 Trade-off between monitoring cost and benefit and risk governance structure results 105 4.3.1.3 CEO‘s negotiation power and risk governance structure results 107 viii 4.3.2 Robustness tests for RQ1 111 4.4 Bank Risk Governance and Risk-Taking: Empirical Results (RQ2) 113 4.4.1 Bank risk governance and insolvency risk 113 4.4.2 Bank risk governance and credit risk 118 4.4.3 Bank risk governance and operational risk 120 4.4.4 Institutional quality and Risk governance structure-Risk taking relation 124 4.4.5 Robustness tests for RQ2 126 4.4.5.1 Bank risk governance and risk-taking prior to and following the 2008 crisis 127 4.4.5.2 Alternatives to risk-taking measures 132 4.5 Bank Risk Governance Structure and Risk Management Effectiveness: Empirical Results (RQ3) 139 4.5.1 Main result 139 4.5.2 Robustness test 145 4.6 Chapter Summary 147 CHAPTER 5: CONCLUSION 149 5.1 Introduction 149 5.2 Review of the Research Questions, Hypotheses, and Findings 149 5.2.1 Research question 149 5.2.2 Research question 152 5.2.3 Research question 154 5.3 Academic Contribution 155 5.4 Policy Implications 157 5.5 Limitations of the Thesis 159 5.6 Future Research Directions 160 LIST OF AUTHOR‘S PUBLICATIONS AND RESEARCH PROJECTS 161 REFERENCES 163 Appendix 1: Estimation result of Table 4.3 by STATA 15 176 Appendix 2: Estimation result of Table 4.4 by STATA 15 179 Appendix 3: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.5 by STATA 15 182 ix Appendix 4: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.6 by STATA 15 186 Appendix 5: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.7 by STATA 15 190 Appendix 6: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.8 by STATA 15 194 Appendix 7: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.9 by STATA 15 196 Appendix 8: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.10 by STATA 15 199 Appendix 9: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.11 by STATA 15 203 Appendix 10: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.12 by STATA 15 207 Appendix 11: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.13 by STATA 15 211 Appendix 12: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.14 by STATA 15 215 Appendix 13: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.15 by STATA 15 217 Appendix 14: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.16 by STATA 15 221 Appendix 15: Further Test for FE/RE Models 225 Appendix 16: Data of Institutional Quality 227 x ABBREVIATIONS ASEAN: Association of South East Asian Nations 2SLS: Two stage least square BCBS: Basel Committee on Banking Supervision BOD: Board of director CEO: Chief Executive Officer Cons: Constants FE: Fixed effect H: Hypothesis IMF: International Monetary Fund IOSCO: International Organization of Securities Commissions LM: Lagrange Multiplier M&A: Mergers and acquisitions NPV: Net-present-value NYSE: New York Stock Exchange Obs: Observation RE: Random effect RQ: Research question SGMM: System generalized method of moments SOX:Sarbanes-Oxley Act of 2002 217 Appendix 13: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.15 by STATA 15 218 219 220 221 Appendix 14: System GMM Estimation result, Arellano-Bond test and Hansen test of table 4.16 by STATA 15 222 223 224 225 Appendix 15: Further Test for FE/RE Models A15a: VIF Value Variable BAGE BSIZE DIV FCAF CEOW CEOT CEOA ROA1 MER1 BOZ1 EAR VIF 1.73 1.42 2.06 2.19 1.13 1.32 1.68 1.1 1.12 1.79 1.12 1/VIF 0.578599 0.703836 0.484837 0.457526 0.887264 0.755339 0.59698 0.909849 0.890378 0.5581 0.889729 A15b: Testing Autocorrelation (Wooldridge test) A15c: Heteroskedasticity test - Wald test for ACS Modified Wald test for groupwise heteroskedasticity 226 in fixed effect regression model H0: sigma(i)^2 = sigma^2 for all i chi2 (98) = 8.9e+05 Prob>chi2 = - 0.0167 Wald test for FAE Modified Wald test for groupwise heteroskedasticity in fixed effect regression model H0: sigma(i)^2 = sigma^2 for all i chi2 (98) = 5.8e+06 Prob>chi2 = - 0.0114 LM – Breusch and pagan Lagrangian Multiplier for ACI LM – Breusch and pagan Lagrangian Multiplier for AMF 227 Appendix 16: Data of Institutional Quality Country Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Cambodia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Indonesia Laos Laos Laos Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 Total COC GOE PSAV RQ RL VA -0.79 -1.01 -0.81 -0.73 -0.31 -1.14 -0.74 -0.85 -0.99 -0.85 -0.65 -0.45 -1.25 -0.90 -0.84 -1.06 -0.89 -0.41 -0.51 -1.28 -0.87 -0.90 -1.21 -1.00 -0.40 -0.53 -1.23 -1.02 -0.89 -1.25 -0.97 -0.35 -0.61 -1.23 -0.93 -0.83 -1.15 -0.90 -0.36 -0.48 -1.14 -0.93 -0.85 -1.23 -0.99 -0.30 -0.45 -1.15 -0.97 -0.87 -1.17 -0.95 -0.56 -0.49 -1.12 -0.91 -0.87 -1.24 -0.94 -0.50 -0.48 -1.12 -0.93 -0.82 -1.24 -0.86 -0.30 -0.58 -1.05 -0.91 -0.71 -1.07 -0.82 -0.10 -0.34 -0.98 -0.96 -0.74 -1.05 -0.91 -0.14 -0.34 -1.00 -0.98 -0.71 -1.14 -0.69 0.02 -0.42 -0.96 -1.11 -0.73 -1.12 -0.70 0.06 -0.53 -0.98 -1.12 -0.73 -1.27 -0.69 0.21 -0.47 -1.06 -1.11 -0.75 -1.29 -0.66 0.17 -0.50 -1.06 -1.16 -0.74 -1.31 -0.65 0.15 -0.53 -1.05 -1.18 -0.78 -1.30 -0.58 -0.08 -0.57 -0.94 -1.20 -0.83 -1.14 -0.41 -1.58 -0.64 -0.91 -0.27 -0.91 -0.97 -0.46 -2.09 -0.80 -0.85 -0.30 -0.83 -0.93 -0.42 -1.91 -0.70 -0.77 -0.26 -0.74 -0.88 -0.48 -1.52 -0.63 -0.82 -0.12 -0.63 -0.84 -0.33 -1.42 -0.38 -0.72 -0.08 -0.52 -0.62 -0.28 -1.20 -0.34 -0.68 -0.02 -0.48 -0.59 -0.24 -1.06 -0.35 -0.65 -0.01 -0.48 -0.84 -0.30 -0.75 -0.36 -0.60 0.00 -0.49 -0.75 -0.21 -0.85 -0.42 -0.64 -0.04 -0.45 -0.70 -0.26 -0.77 -0.35 -0.59 -0.01 -0.38 -0.64 -0.27 -0.59 -0.28 -0.58 0.07 -0.34 -0.61 -0.20 -0.52 -0.20 -0.53 0.04 -0.22 -0.56 -0.04 -0.42 -0.11 -0.34 0.15 -0.29 -0.46 -0.24 -0.62 -0.22 -0.42 0.18 -0.18 -0.40 0.01 -0.37 -0.12 -0.34 0.17 -0.17 -0.25 0.04 -0.51 -0.11 -0.35 0.13 -0.16 -0.24 0.03 -0.49 -0.11 -0.34 0.12 -0.17 -0.42 0.18 -0.48 -0.09 -0.34 0.16 -1.06 -1.15 -0.91 -0.10 -1.30 -1.15 -1.74 -1.31 -1.18 -1.00 -1.23 -1.40 -1.27 -1.78 -1.13 -1.24 -1.00 -0.61 -1.29 -1.12 -1.55 228 Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Laos Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Myanmar Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 -1.19 -1.07 -1.03 -0.96 -1.03 -1.00 -0.95 -0.86 -0.81 -0.68 -0.71 -0.68 -0.70 -0.70 -0.80 -1.64 -1.61 -1.73 -1.66 -1.65 -1.70 -1.70 -1.75 -1.74 -1.61 -1.38 -1.30 -1.19 -1.15 -0.83 -0.89 -0.86 -0.95 -0.30 -0.44 -0.57 -0.40 -0.55 -0.49 -0.55 -0.54 -0.54 -1.30 -1.31 -1.27 -1.20 -1.24 -1.19 -1.18 -1.02 -0.93 -0.85 -0.91 -0.95 -0.94 -0.95 -1.06 -1.32 -1.48 -1.65 -1.54 -1.66 -1.63 -1.62 -1.66 -1.67 -1.59 -1.06 -1.00 -0.88 -0.84 -0.62 -0.56 -0.54 -0.63 -0.50 -0.58 -0.65 -0.62 -0.83 -0.72 -0.76 -0.77 -0.76 -1.21 -0.98 -0.90 -0.88 -0.95 -0.86 -0.83 -0.84 -0.73 -0.42 -0.51 -0.37 -0.36 -0.35 -0.78 -1.31 -1.24 -1.56 -1.53 -1.45 -1.48 -1.53 -1.61 -1.62 -1.60 -1.48 -1.50 -1.28 -1.24 -0.98 -1.05 -1.04 -1.15 -0.13 -0.10 -0.24 -0.04 -0.13 0.07 0.02 -0.03 0.00 -0.49 -0.09 -0.18 0.02 -0.16 -0.28 -0.06 0.03 0.07 0.50 0.54 0.53 0.43 0.43 0.53 -1.41 -1.15 -0.99 -0.90 -0.85 -1.06 -1.09 -1.29 -1.29 -1.11 -0.94 -1.14 -1.09 -1.17 -0.80 -1.08 -1.08 -1.26 -0.86 -1.56 -1.71 -1.18 -1.64 -1.60 -1.78 -1.73 -1.65 -1.33 -1.27 -1.18 -1.14 -1.07 -1.02 -0.98 -0.82 -0.84 -0.85 -0.81 -0.72 -0.72 -0.71 -0.71 -2.06 -2.00 -2.34 -2.12 -2.19 -2.27 -2.21 -2.24 -2.24 -2.10 -1.83 -1.49 -1.38 -1.22 -0.87 -0.83 -0.80 -0.76 -0.10 -0.05 -0.30 -0.18 -0.17 -0.12 -0.08 -0.11 -0.23 -1.18 -1.02 -0.96 -0.87 -1.05 -0.98 -1.00 -0.85 -0.80 -0.75 -0.80 -0.80 -0.88 -0.87 -0.94 -1.71 -1.70 -1.74 -1.73 -1.53 -1.55 -1.54 -1.53 -1.55 -1.44 -1.35 -1.23 -1.19 -1.24 -0.89 -0.95 -0.92 -1.06 -0.37 -0.49 -0.57 -0.35 -0.41 -0.46 -0.55 -0.57 -0.55 -1.66 -1.73 -1.72 -1.71 -1.70 -1.68 -1.68 -1.64 -1.65 -1.73 -1.75 -1.76 -1.75 -1.79 -1.80 -2.01 -2.08 -2.12 -2.17 -2.23 -2.21 -2.21 -2.17 -2.07 -1.85 -1.62 -1.46 -1.34 -1.22 -0.80 -0.87 -0.83 -0.84 0.16 0.15 0.03 -0.01 -0.09 -0.11 -0.14 -0.03 -0.04 229 Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines Philippines Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Singapore Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand Thailand 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 -0.45 -0.38 -0.30 -0.19 -0.24 -0.35 -0.35 -0.37 -0.31 1.47 1.40 1.49 1.48 1.43 1.47 1.53 1.46 1.47 1.47 1.57 1.54 1.57 1.59 1.61 1.62 1.62 1.63 0.23 0.14 -0.03 -0.04 -0.27 -0.28 -0.32 -0.32 -0.35 -0.28 -0.26 -0.29 -0.30 -0.33 -0.32 -0.67 -0.56 -0.38 -0.44 -0.45 -0.49 -0.48 -0.48 -0.57 2.32 2.23 2.33 2.17 2.19 2.24 2.25 2.22 2.18 2.11 2.12 2.08 2.07 2.09 2.09 2.13 2.13 2.16 -0.31 -0.17 -0.23 -0.19 -0.38 -0.37 -0.41 -0.31 -0.33 -0.32 -0.37 -0.34 -0.45 -0.49 -0.39 0.09 0.11 0.12 0.19 0.11 -0.02 -0.06 -0.06 0.05 1.85 1.95 1.99 1.96 2.21 2.38 2.44 2.27 2.24 2.15 2.17 2.09 2.18 2.24 2.19 2.21 2.22 2.22 0.31 0.37 0.32 0.40 0.45 0.36 0.22 0.27 0.19 0.21 0.22 0.25 0.34 0.35 0.34 -1.39 -1.19 -1.08 -0.71 -0.86 -1.38 -1.24 -1.30 -0.88 1.26 0.88 1.09 1.16 1.25 1.17 1.35 1.18 1.17 1.19 1.37 1.38 1.19 1.31 1.50 1.59 1.62 1.53 0.51 -0.14 -0.72 -0.87 -1.13 -1.11 -1.27 -1.42 -1.44 -1.13 -1.22 -1.31 -0.91 -0.99 -0.99 -0.23 -0.06 -0.07 -0.04 -0.04 0.00 0.02 0.02 0.01 1.94 1.82 1.77 1.75 1.75 1.81 1.87 1.78 1.79 1.79 1.97 1.97 2.23 2.26 2.18 2.12 2.11 2.16 0.18 0.38 0.23 0.47 0.24 0.14 0.21 0.22 0.17 0.20 0.24 0.23 0.27 0.29 0.17 -0.51 -0.52 -0.40 -0.32 -0.34 -0.35 -0.41 -0.46 -0.48 1.41 1.57 1.66 1.71 1.59 1.61 1.61 1.57 1.63 1.67 1.73 1.71 1.82 1.81 1.83 1.82 1.86 1.88 0.38 0.16 0.11 0.05 -0.06 -0.12 -0.14 -0.23 -0.20 -0.20 -0.15 -0.12 -0.19 -0.15 0.00 -0.02 -0.03 0.01 0.16 0.15 0.16 0.08 0.08 0.03 0.06 -0.02 0.08 0.13 -0.39 -0.36 -0.33 -0.23 -0.21 -0.10 0.05 0.04 -0.10 -0.16 -0.15 -0.17 -0.17 -0.18 0.32 0.22 0.13 -0.10 -0.74 -0.56 -0.53 -0.46 -0.50 -0.41 -0.32 -0.43 -0.87 -0.97 -1.03 230 Thailand Thailand Thailand Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Vietnam Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Brunei Malaysia Malaysia Malaysia 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2002 2003 2004 -0.27 -0.27 -0.20 -0.58 -0.57 -0.59 -0.47 -0.55 -0.53 -0.56 -0.53 -0.57 -0.54 -0.53 -0.50 -0.48 -0.41 -0.33 -0.33 -0.33 -0.33 0.52 0.51 0.47 0.41 0.36 0.43 0.46 0.74 0.71 0.71 0.62 0.63 0.62 0.56 0.51 0.58 0.57 0.60 0.39 0.45 0.42 -0.39 -0.39 -0.41 -0.57 -0.50 -0.73 -0.72 -0.75 -0.63 -0.71 -0.54 -0.62 -0.61 -0.53 -0.48 -0.44 -0.43 -0.45 -0.58 -0.59 -0.51 0.31 0.32 0.41 0.25 0.21 0.21 0.49 0.99 0.86 0.86 0.55 0.65 0.53 0.57 0.57 0.71 0.73 0.80 0.27 0.34 0.34 0.38 0.40 0.36 -0.44 -0.45 -0.48 -0.23 -0.25 -0.24 -0.21 -0.26 -0.26 -0.23 -0.27 -0.27 -0.07 0.07 0.01 0.00 0.00 0.04 0.89 0.75 0.24 0.60 0.87 0.92 0.89 0.92 0.90 0.90 0.84 0.87 1.09 1.06 1.08 1.14 1.16 1.32 1.02 1.16 1.09 -0.76 -0.78 -0.54 0.35 0.13 0.15 0.48 0.40 0.25 0.16 0.27 0.15 0.19 0.27 0.25 -0.02 0.07 0.23 0.31 0.30 0.13 1.16 1.15 1.37 1.21 1.12 1.11 1.13 1.39 1.28 1.09 0.91 1.07 1.26 1.24 1.15 1.19 1.19 1.17 0.54 0.49 0.35 0.14 0.15 0.12 -0.72 -0.56 -0.56 -0.60 -0.62 -0.56 -0.62 -0.62 -0.62 -0.60 -0.67 -0.64 -0.59 -0.48 -0.45 -0.40 -0.39 -0.26 1.09 1.03 1.21 0.91 0.94 0.99 0.78 1.09 1.11 1.15 1.15 1.11 0.99 0.85 0.59 0.72 0.69 0.63 0.56 0.63 0.47 0.04 0.04 0.10 -0.64 -0.58 -0.57 -0.32 -0.52 -0.49 -0.47 -0.54 -0.59 -0.54 -0.55 -0.51 -0.36 -0.34 0.08 0.07 0.06 -0.02 0.50 0.59 0.38 0.24 0.12 0.41 0.47 0.79 0.78 0.85 0.79 0.59 0.47 0.41 0.56 0.65 0.64 0.61 0.45 0.52 0.52 -1.05 -1.12 -0.83 -1.45 -1.47 -1.34 -1.40 -1.54 -1.53 -1.50 -1.48 -1.50 -1.46 -1.42 -1.37 -1.37 -1.36 -1.37 -1.40 -1.42 -1.38 -0.83 -0.78 -0.80 -0.78 -1.10 -1.06 -1.02 -0.73 -0.65 -0.61 -0.51 -0.51 -0.63 -0.75 -0.90 -0.95 -0.97 -0.95 0.16 0.16 0.15 231 Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia Malaysia 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0.47 0.38 0.34 0.21 0.19 0.32 0.29 0.31 0.36 0.48 0.38 0.32 0.29 0.28 0.43 0.20 0.23 0.19 -0.05 -0.06 0.09 0.03 0.24 0.35 0.41 0.24 0.10 0.03 0.02 0.25 1.09 1.27 1.24 1.11 0.98 1.12 1.02 0.92 1.00 1.12 0.95 0.87 0.84 0.86 1.00 0.56 0.29 0.19 0.11 -0.04 0.14 0.08 -0.01 0.05 0.27 0.26 0.14 0.16 0.15 0.11 0.64 0.55 0.51 0.32 0.30 0.59 0.58 0.57 0.64 0.84 0.75 0.71 0.68 0.68 0.67 0.50 0.15 0.47 0.12 0.44 0.12 0.34 0.12 0.46 0.12 0.48 0.11 0.48 0.11 0.47 0.11 0.44 0.11 0.59 0.13 0.50 0.13 0.50 0.13 0.41 0.13 0.41 0.12 0.59 -0.04 Source: World banks