/jurnalpengurusan Fri, 20 Sep 2024 09:02:55 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 /jurnalpengurusan/article/characteristics-of-board-and-shariah-board-on-risk-taking-and-performance-evidence-from-takaful-operators-in-malaysia/?utm_source=rss&utm_medium=rss&utm_campaign=characteristics-of-board-and-shariah-board-on-risk-taking-and-performance-evidence-from-takaful-operators-in-malaysia Fri, 20 Sep 2024 01:34:46 +0000 /jurnalpengurusan/?post_type=article&p=7423 This study examines how board of directors (BOD) and Shariah board (SB) characteristics influence risk-taking and performance in Malaysian Takaful operators (TOs). These operators face unique challenges when balancing financial growth with strict adherence to Shariah principles. The study analyse data from 15 TOs from 2012 to 2021, resulting in a total of 124 firm-years of observations using panel data regression techniques. The key findings are a higher proportion of women on BOD leads to less risk-taking, while larger SB with more PhD members encourage it. However, the impact on performance is mixed. More women on BOD might reduce returns on assets, while frequent BOD meetings and a highly qualified SB might lower return on equity. This research offers valuable insights, where investors should consider the risk-return trade-off when evaluating TOs based on BOD and SB composition while managers need to balance risk management with Shariah compliance by building diverse BOD and optimising SB structure. Industry regulators should promote sound governance practices and collaboration between BOD and SB. Overall, the study contributes to the corporate and Shariah governance literature, shedding light on the complex interplay between BOD composition, SB expertise, risk-taking and performance in a complex industry.

]]> /jurnalpengurusan/article/board-size-chief-risk-officer-and-risk-taking-in-islamic-banks-role-of-shariah-supervisory-board/?utm_source=rss&utm_medium=rss&utm_campaign=board-size-chief-risk-officer-and-risk-taking-in-islamic-banks-role-of-shariah-supervisory-board Sat, 08 Oct 2022 04:37:37 +0000 /jurnalpengurusan/?post_type=article&p=1811 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

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