Islamic bank governance – smooth sailing or stormy weather

The purpose of this study is to examine the Islamic banks' governance and specific factors to the risk-taking behaviour of Islamic banks in different countries from the year 2009 to 2018. Therefore, the exogenous variables deployed in this study include factors like shariah board size (SSB), Ph...

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Bibliographic Details
Main Authors: Tan, Wei Yau, Leong, Chun Yip, Thiam, Kok Liang, Leow, Zhen Ran, Woo, Jiun Hao
Format: Final Year Project / Dissertation / Thesis
Published: 2020
Subjects:
Online Access:http://eprints.utar.edu.my/4012/
http://eprints.utar.edu.my/4012/1/fyp_FN_2020_TWY_%2D_1706384.pdf
Description
Summary:The purpose of this study is to examine the Islamic banks' governance and specific factors to the risk-taking behaviour of Islamic banks in different countries from the year 2009 to 2018. Therefore, the exogenous variables deployed in this study include factors like shariah board size (SSB), PhD Degree Holder in Shariah Board (PHD), Shariah members who sit on Others’ Shariah Board (OSSB), Board Size (BOARD), CEO Duality (CEOD), Bank Size (BS), Net Interest Margin (NIM), Overhead Ratio (OH), Cost to Income Ratio (CI) and Interbank Ratio (IB). In addition, unbalanced panel data is adopted in this study and data collection is on annual basis from the year 2009 to 2018 (10 years). The data collected through annual reports and BankFocus. Our samples are made up of 206 Islamic banks from different countries. However, we have 369 observations for our result which is filtered out by the Stata software. The findings of this study showed that exogenous variables like SSB, PHD, CEOD, BS, OH and NIM have a significant relationship with the Islamic banks’ risk-taking behaviour.