Shariah supervisory board attributes and corporate risk-taking in Islamic banks

Mukhibad, Hasan; Setiawan, Doddy

doi:10.1080/23311975.2022.2158607

Cited by 9 publications

(5 citation statements)

References 98 publications

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“…Meanwhile, this research rejects the opinion of (Setiawan et al, 2022), which states that sharia business risks have no effect on female directors.…”

Section: The Influence Of Sharia Business Risk On Female Directorscontrasting

confidence: 80%

Harmonization of Business Practices with SDGs: Linking Macroeconomic Influence, Disclosure of CSR, Sharia Business Risks on Company Value with Female Directors

Bulkia,

Ratnawati,

Pristiana

2023

J. of Law and Sust. Develop.

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Purpose: The purpose of this research is to investigate the relationships between a number of SDG’s important aspects. This study looks at Islamic business risks, macroeconomics, disclosure related to Corporate Social Responsibility (CSR), and the effect of having female members on the board of directors on the value of the company. Theoretical framework: The theoretical basis is the literature on the relationship between the Sustainable Development Goals (SDGs) and the business practices implemented by corporations. The study's findings indicate that while macroeconomics does not have an impact on female directors' financial performance, it does have an impact on firm value. Female directors and corporate valuation are unaffected by CSR Disclosure, although financial performance is. Sharia business risk has an impact on female directors and firm value but has no impact on firm value itself. Design/methodology/approach: Data was gathered quantitatively. Using the use of partial least squares structural equation modelling, we studied surveying information from 27 samples, and the research period was 5 years, so the total data was 135 data (27x5 years). Findings: According to the findings, the contribution to the SDG's are a. Reduction of Inequalities (SDG 10), b. Poverty Eradication (SDG 1) and Productive Employment (SDG 8), c. Energy Sustainability (SDG 7) and Environmental Protection (SDG 13), d. Quality Education (SDG 4), e. Health and Wellbeing (SDG 3), f. Innovation and Infrastructure (SDG 9), g. Sustainable Water Environment and Clean Water (SDG 6), h. Peace, Justice, and Strong Institutions (SDG 16). The value of the company is impacted by female directors and financial performance. The effects of macroeconomics, CSR disclosure, and sharia business risks on firm value cannot be mitigated by female directors. Financial performance mediates the impact of CSR disclosure and sharia business risk on company value but not the impact of macroeconomics on firm value. Research, Practical & Social implications: This research aimed was to investigate the potential correlation between the adoption of business practices by corporations and the attainment of the Sustainable Development Goals (SDGs). Also, to investigate the connections between various important elements in a networked corporate environment. This study's primary target areas include macroeconomics, Islamic business risks, Corporate Social Responsibility (CSR) disclosure, and the effect of having female directors on the board of directors on corporate value. Originality/value: The study's worth lies in the additional insights it gives into the potential correlation between the adoption of business practices by corporations and the attainment of the Sustainable Development Goals (SDGs).

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“…Meanwhile, this research rejects the opinion of (Setiawan et al, 2022), which states that sharia business risks have no effect on female directors.…”

Section: The Influence Of Sharia Business Risk On Female Directorscontrasting

confidence: 80%

Harmonization of Business Practices with SDGs: Linking Macroeconomic Influence, Disclosure of CSR, Sharia Business Risks on Company Value with Female Directors

Bulkia,

Ratnawati,

Pristiana

2023

J. of Law and Sust. Develop.

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“…According to (Abdullah et al, 2013), the expertise of the Sharia Supervisory Board (SSB) of Islamic Banks in Malaysia in the areas of accounting, banking, economics or finance encourages the disclosure of supervision carried out by SSB. In Indonesia, according to Mukhibad & Setiawan (2022), busy life, educational background (economics/finance and Islamic law), and experience of SSB of the Sharia Supervisory Board of Islamic Banks harm risk in Islamic banks. Meanwhile, the SSB education level encourages directors to take risks.…”

Section: Resultsmentioning

confidence: 99%

The urgency of sharia division in Indonesian and Malaysian Islamic bank

Wahyudi

Asiyah²,

Haq³

2023

al-Uqud

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This paper aims to investigate the significance of having a sharia division in Indonesian and Malaysian Islamic banks. This paper is a qualitative study based on a review of official documents from the Indonesian Central Bank and the Indonesian Sharia Council. Interviews with Sharia Advisers were conducted to conduct an interpretive, critical, and descriptive study of the issue. The interpretive analysis was carried out by interpreting each issued regulation, and the analysis was deepened by presenting a description of the sharia division's implementation in Malaysian Islamic banks. Efforts to analyze the results are carried out by reducing the information obtained, presenting the data and concluding. According to the research findings, there are numerous deviations in non-compliance with Sharia implementation in disbursed financing. According to the findings, Islamic banks must have a Sharia division in their organisational structure. The Sharia division ensures that Sharia bank operations follow Sharia principles, beginning with input, processing, and output. This study's theoretical implication is a study of sharia implementation by providing a sharia division in the organisational structure of Islamic banks. This is a more extensive study involving more sharia banks on their willingness and the internal awareness of the presence of the sharia division. Any country that wishes to establish sharia banks must research the presence of sharia divisions to ensure sharia compliance in their operations.

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“…We also use COVID as a control variable to control for economic crisis factors due to the COVID-19 pandemic, which can affect the cost of PSIA. COVID was measured by a dummy with a score 1 where the year of observation of the measured period of COVID is given a score of 1, and 0 otherwise (Mukhibad & Setiawan, 2022).…”

Section: Methodsmentioning

confidence: 99%

“…PSIA is a product of depositors with a profit-sharing scheme, does not provide a fixed return for depositors, and can even experience losses if the bank suffers a loss. Thus, PSIA holders face higher risks than holders of CB deposits (Mukhibad & Setiawan, 2022). Based on this scheme, IBs share their profits or losses with these account holders, and IBs are expected to take lower risks than CBs (Saeed et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Bank social fund distribution and cost of profit-sharing investment account: evidence from Indonesia

Jayanto,

Mukhibad,

Aziz

2023

JIAFR

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Purpose - This study aims to prove the impact of the distribution of social funds (qardhul hasan-QH and zakah funds) on the cost of a Profit-Sharing Investment Account (PSIA) immediately and for a long period in Islamic banks.Method - The research is based on panel data from 11 Islamic commercial banks (IB) in Indonesia from 2009 to 2021. Data were analyzed using the generalized least squares (GLS) random-effects method with robust standard error.Result - This research proves that the distribution of social funds (the distribution of QH and zakah funds) has a positive economic impact in the short period but the distribution of social funds has a negative economic impact in the long period.Implication - This study contributes to bank directors in considering the social activities of banks funded by QH funds by considering the effectiveness of social fund distribution, hence having positive economic consequences for bank performance.Originality - This research contributes to the development of previous literature in two ways. First, we use CSR performance proxies that are different from previous studies, namely the distribution of QH and zakah funds. The distribution of these funds is a proof of the bank's legitimacy to care about social, economic, and environmental issues. Second, we use the cost of PSIA as an economic consequence of CSR performance.

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Shariah supervisory board attributes and corporate risk-taking in Islamic banks

Cited by 9 publications

References 98 publications

Harmonization of Business Practices with SDGs: Linking Macroeconomic Influence, Disclosure of CSR, Sharia Business Risks on Company Value with Female Directors

Harmonization of Business Practices with SDGs: Linking Macroeconomic Influence, Disclosure of CSR, Sharia Business Risks on Company Value with Female Directors

The urgency of sharia division in Indonesian and Malaysian Islamic bank

Bank social fund distribution and cost of profit-sharing investment account: evidence from Indonesia

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