THE EFFECTS OF SHARIAH SUPERVISORY BOARD CHARACTERISTICS AND THE RISK-TAKING AMONG ISLAMIC FINANCING INSTITUTIONS IN BANGLADESH

Md. Mohidul Islam; Abul Bashar Bhuiyan; Aza Azlina Md Kassim; Salina Rasli

doi:10.46281/ijscgr.v4i1.1736

Md. Mohidul Islam Universiti Selangor, Malaysia https://orcid.org/0000-0002-9202-6034
Abul Bashar Bhuiyan Universiti Selangor, Malaysia https://orcid.org/0000-0003-1763-124X
Aza Azlina Md Kassim Management and Science University, Malaysia https://orcid.org/0000-0002-7206-8755
Salina Rasli Universiti Selangor, Malaysia https://orcid.org/0000-0003-2086-380X

DOI: https://doi.org/10.46281/ijscgr.v4i1.1736

Keywords: Islamic Financing Institutions, Risk Taking, Shariah Supervisor Board

Abstract

The study aims to examine the influences of Shariah Supervisory Board (SSB) characteristics and risk-taking among Islamic Financial Institutions (IFIs) in Bangladesh. The study conducts dynamic short panel data regarding the annual report of quoted 14 IFIs in Bangladesh from 2013 to 2018. The study has shown the first and second lag of dependent variables and applied them under the dynamic GMM model in Stata software. Risk-taking is the most prejudicial issue that needs to be justified by findings. The hypothesis result of SSB size is positive and insignificant due to its size. It means SSB is less essential to reducing the risk-taking of IFIs in Bangladesh. The study also finds that the positive result of scholars in SSB is put in the right place that supports reducing excess risk-taking. It could be a valuable source of knowledge for reducing risk-taking on the risk committee.

JEL Classification Codes: G34.

Author Biographies

Md. Mohidul Islam, Universiti Selangor, Malaysia

Ph.D. Fellow, Faculty of Business and Accountancy, Universiti Selangor, Malaysia

Abul Bashar Bhuiyan, Universiti Selangor, Malaysia

Ph.D., Associate Professor, Faculty of Business and Accountancy, Universiti Selangor, Malaysia

Aza Azlina Md Kassim, Management and Science University, Malaysia

Ph.D., Associate Professor, Faculty of Business Management and Professional Studies, Management and Science University, Malaysia

Salina Rasli, Universiti Selangor, Malaysia

Ph.D., Senior Lecturer, Department of Accountancy, Finance and Mumalat, Faculty of Business and Accountancy, Universiti Selangor, Malaysia

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