IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v99y2026ics0927538x26001678.html

Does information technology governance affect banks' risk-taking behavior? Evidence from China

Author

Listed:
  • Huang, Mingming
  • Lee, Edward
  • Li, Xinwu
  • Wang, Baiqiang
  • Zhu, Liyi

Abstract

This study examines whether and how information technology governance (ITG) affects banks' risk-taking behavior in China. Existing literature provides competing theories on the role of governance in shaping bank behavior. On the one hand, the shareholder perspective suggests that governance may increase the risk-taking of banks to cater for shareholder wealth maximization. On the other hand, the stakeholder perspective implies that governance may decrease risk-taking in response to the risk aversion across a wider range of stakeholders. We show that the presence of information technology committee in the banks' organizational structure reduces risk-taking among banks, and especially for those with weaker governance and stronger information asymmetry. Further analyses reveal that such ITG mechanism also improves banks' efficiency in digital transformation and the stability of profitable assets. Collectively, our results are in line with the stakeholder perspective, indicating that bank ITG can contribute to financial stability in the banking sector. These findings offer important policy implications for bank governance, especially under the uncertainty that emerges from artificial intelligence and other new digital technologies.

Suggested Citation

  • Huang, Mingming & Lee, Edward & Li, Xinwu & Wang, Baiqiang & Zhu, Liyi, 2026. "Does information technology governance affect banks' risk-taking behavior? Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:pacfin:v:99:y:2026:i:c:s0927538x26001678
    DOI: 10.1016/j.pacfin.2026.103221
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X26001678
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2026.103221?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:99:y:2026:i:c:s0927538x26001678. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.