Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)

This paper aims to examine the moderating effect of Shariah Supervisory Boards (SSBs) on the relationship between board size, Chief Risk Officer (CRO), and risk-taking of 24 Islamic banks (IBs) in Malaysia, Indonesia and Brunei from 2010 to 2015. This approach integrates the arguments of agency theo...

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Main Authors:	Najwa, Nur Athirah, Ramly, Zulkufly, Haron, Razali
Format:	Article
Language:	English English
Published:	UKM Press 2019
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/77874/ http://irep.iium.edu.my/77874/ http://irep.iium.edu.my/77874/1/77874%20-%20Board%20Size%2C%20Chief%20Risk%20Officer%20and%20Risk-taking%20in%20Islamic%20Banks.pdf http://irep.iium.edu.my/77874/7/77874%20-%20Board%20Size%2C%20Chief%20Risk%20Officer%20and%20Risk-taking%20in%20Islamic%20Banks%20Role%20of%20Shariah%20Supervisory%20Board-%20scopus.pdf

id	iium-77874
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spelling	iium-778742020-02-20T03:11:34Z http://irep.iium.edu.my/77874/ Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah) Najwa, Nur Athirah Ramly, Zulkufly Haron, Razali HG3368 Islamic Banking and Finance This paper aims to examine the moderating effect of Shariah Supervisory Boards (SSBs) on the relationship between board size, Chief Risk Officer (CRO), and risk-taking of 24 Islamic banks (IBs) in Malaysia, Indonesia and Brunei from 2010 to 2015. This approach integrates the arguments of agency theory and resource dependence theory. The results of panel regression indicate that the appointment of a CRO as an executive board member reduces credit risk, implying that the appointment of a CRO as a risk expert in IBs enhances the management of risk and monitoring of risk-taking activities. Further, larger board is likely to reduce insolvency risk when an SSB has higher percentage of members with supervisory Shariah experience. Next, this study observes that larger SSB size and a higher percentage of members with Shariah supervision experience moderate the relationship between the CRO and insolvency risk. Overall, this study highlights the important role of board size, CRO and SSB in the risk-taking of Islamic banks, which have received little attention in the extant literature. UKM Press 2019-12-28 Article PeerReviewed application/pdf en http://irep.iium.edu.my/77874/1/77874%20-%20Board%20Size%2C%20Chief%20Risk%20Officer%20and%20Risk-taking%20in%20Islamic%20Banks.pdf application/pdf en http://irep.iium.edu.my/77874/7/77874%20-%20Board%20Size%2C%20Chief%20Risk%20Officer%20and%20Risk-taking%20in%20Islamic%20Banks%20Role%20of%20Shariah%20Supervisory%20Board-%20scopus.pdf Najwa, Nur Athirah and Ramly, Zulkufly and Haron, Razali (2019) Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah). Jurnal Pengurusan, 57. ISSN 0127-2713 (In Press) http://ejournal.ukm.my/pengurusan/article/view/27457
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Najwa, Nur Athirah Ramly, Zulkufly Haron, Razali Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)
description	This paper aims to examine the moderating effect of Shariah Supervisory Boards (SSBs) on the relationship between board size, Chief Risk Officer (CRO), and risk-taking of 24 Islamic banks (IBs) in Malaysia, Indonesia and Brunei from 2010 to 2015. This approach integrates the arguments of agency theory and resource dependence theory. The results of panel regression indicate that the appointment of a CRO as an executive board member reduces credit risk, implying that the appointment of a CRO as a risk expert in IBs enhances the management of risk and monitoring of risk-taking activities. Further, larger board is likely to reduce insolvency risk when an SSB has higher percentage of members with supervisory Shariah experience. Next, this study observes that larger SSB size and a higher percentage of members with Shariah supervision experience moderate the relationship between the CRO and insolvency risk. Overall, this study highlights the important role of board size, CRO and SSB in the risk-taking of Islamic banks, which have received little attention in the extant literature.
format	Article
author	Najwa, Nur Athirah Ramly, Zulkufly Haron, Razali
author_facet	Najwa, Nur Athirah Ramly, Zulkufly Haron, Razali
author_sort	Najwa, Nur Athirah
title	Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)
title_short	Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)
title_full	Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)
title_fullStr	Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)
title_full_unstemmed	Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)
title_sort	board size, chief risk officer and risk-taking in islamic banks: role of shariah supervisory board(saiz lembaga pengarah, ketua pegawai risiko dan pengambilan risiko di bank-bank islam: peranan lembaga penyeliaan syariah)
publisher	UKM Press
publishDate	2019
url	http://irep.iium.edu.my/77874/ http://irep.iium.edu.my/77874/ http://irep.iium.edu.my/77874/1/77874%20-%20Board%20Size%2C%20Chief%20Risk%20Officer%20and%20Risk-taking%20in%20Islamic%20Banks.pdf http://irep.iium.edu.my/77874/7/77874%20-%20Board%20Size%2C%20Chief%20Risk%20Officer%20and%20Risk-taking%20in%20Islamic%20Banks%20Role%20of%20Shariah%20Supervisory%20Board-%20scopus.pdf
first_indexed	2023-09-18T21:49:48Z
last_indexed	2023-09-18T21:49:48Z
_version_	1777413692357345280

Board size, chief risk officer and risk-taking in Islamic banks: role of shariah supervisory board(Saiz Lembaga Pengarah, Ketua Pegawai Risiko dan Pengambilan Risiko di Bank-bank Islam: Peranan Lembaga Penyeliaan Syariah)

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