Board of directors and risk-taking behavior of Islamic banks in South East Asia

Board of directors and risk-taking behavior of Islamic banks in South East Asia

Objectives - Board of Directors (BODs) and Shariah Supervisory Board (SSB) have a pivotal role to manage Islamic banks in Southeast Asia. The decision made by the BODs and SSB will directly affect the risk-taking behavior performed by an Islamic bank. This study aims to investigate the relationship...

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Main Authors: Fakhrunnas, Faaza, Ramly, Zulkufly
Format: Article
Language:English
Published: Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics 2016
Subjects:
HG1501 Banking
Online Access:http://irep.iium.edu.my/58317/
http://irep.iium.edu.my/58317/
http://irep.iium.edu.my/58317/1/Board_of_Directors_and_Risk-taking_Behav.pdf
id iium-58317
recordtype eprints
spelling iium-583172017-09-12T08:59:08Z http://irep.iium.edu.my/58317/ Board of directors and risk-taking behavior of Islamic banks in South East Asia Fakhrunnas, Faaza Ramly, Zulkufly HG1501 Banking Objectives - Board of Directors (BODs) and Shariah Supervisory Board (SSB) have a pivotal role to manage Islamic banks in Southeast Asia. The decision made by the BODs and SSB will directly affect the risk-taking behavior performed by an Islamic bank. This study aims to investigate the relationship among BODs, SSB and risk-taking behavior of Islamic banks in Southeast Asia. Method - Adopting random effect model, unbalanced panel data, this research utilizes 24 Islamic banks in Southeast Asia which observe over six periods from 2009 to 2014. Results - the study reveals that independent director influences the risk-taking behavior positively, while Shariah Supervisory Board (SSB) affects it negatively. In addition, Board size has a positive effect on the credit risk but negative on z-score. Conclusion - Islamic bank industry in Southeast Asia has to consider to increase the number of SSB to oversee the Islamic bank operation appropriately. In addition, independent director composition in the board of directors has to be considered precisely in terms of the number to have a good performance in organizing the Islamic banks in Southeast Asia. Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics 2016-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/58317/1/Board_of_Directors_and_Risk-taking_Behav.pdf Fakhrunnas, Faaza and Ramly, Zulkufly (2016) Board of directors and risk-taking behavior of Islamic banks in South East Asia. Tazkia Islamic Finance and Business Review, 10 (2). pp. 162-177. ISSN 1907-8145 E-ISSN 2460-0717 http://www.tifbr-tazkia.org/index.php/TIFBR/article/view/107/111
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG1501 Banking
spellingShingle HG1501 Banking
Fakhrunnas, Faaza
Ramly, Zulkufly
Board of directors and risk-taking behavior of Islamic banks in South East Asia
description Objectives - Board of Directors (BODs) and Shariah Supervisory Board (SSB) have a pivotal role to manage Islamic banks in Southeast Asia. The decision made by the BODs and SSB will directly affect the risk-taking behavior performed by an Islamic bank. This study aims to investigate the relationship among BODs, SSB and risk-taking behavior of Islamic banks in Southeast Asia. Method - Adopting random effect model, unbalanced panel data, this research utilizes 24 Islamic banks in Southeast Asia which observe over six periods from 2009 to 2014. Results - the study reveals that independent director influences the risk-taking behavior positively, while Shariah Supervisory Board (SSB) affects it negatively. In addition, Board size has a positive effect on the credit risk but negative on z-score. Conclusion - Islamic bank industry in Southeast Asia has to consider to increase the number of SSB to oversee the Islamic bank operation appropriately. In addition, independent director composition in the board of directors has to be considered precisely in terms of the number to have a good performance in organizing the Islamic banks in Southeast Asia.
format Article
author Fakhrunnas, Faaza
Ramly, Zulkufly
author_facet Fakhrunnas, Faaza
Ramly, Zulkufly
author_sort Fakhrunnas, Faaza
title Board of directors and risk-taking behavior of Islamic banks in South East Asia
title_short Board of directors and risk-taking behavior of Islamic banks in South East Asia
title_full Board of directors and risk-taking behavior of Islamic banks in South East Asia
title_fullStr Board of directors and risk-taking behavior of Islamic banks in South East Asia
title_full_unstemmed Board of directors and risk-taking behavior of Islamic banks in South East Asia
title_sort board of directors and risk-taking behavior of islamic banks in south east asia
publisher Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics
publishDate 2016
url http://irep.iium.edu.my/58317/
http://irep.iium.edu.my/58317/
http://irep.iium.edu.my/58317/1/Board_of_Directors_and_Risk-taking_Behav.pdf
first_indexed 2023-09-18T21:22:27Z
last_indexed 2023-09-18T21:22:27Z
_version_ 1777411972025810944

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