The Effect of Gender Diversity and Expertise of Risk Monitoring Committee on Equity Investment Risk in Islamic Banks
Journal Title: Journal of Economics, Finance and Management Studies - Year 2024, Vol 7, Issue 08
Abstract
The study of risk in Islamic banks emphasizes more on the general risk of Islamic banks, this general risk in Islamic banks arises from transactions unrelated to special transactions of Islamic banks. The profit and loss sharing system implemented by Islamic banks raises equity investment risk (EIR). This study uses the agency theory approach in explaining EIR. In the agency theory approach, the risk monitoring committee has the responsibility of evaluating and monitoring the risk management in Islamic banks. The characteristics of risk monitoring committee members can affect the capability of the risk monitoring committee to provide risk management assessments and policies and can affect the effectiveness of the risk monitoring committee in carrying out its duties and responsibilities. The study population was 109 Islamic banks spread across 18 countries in ASEAN and the Gulf Cooperation Council, where the sample was observed in 2021 during the peak of COVID-19. The results of this study indicate that the gender diversity of the risk management committee and the risk management monitoring committee’s expertise in accounting/risk management have a significant negative effect on equity investment risk.
Authors and Affiliations
Hidayatul Affifah , Sri Hartoko,
Keywords
Related Articles
- EP ID EP743432
- DOI 10.47191/jefms/v7-i8-54
- Views 49
- Downloads 0
Examining User Satisfaction in the Village Financial Supervision System (Siswaskeudes): Insights from the USTAM Framework
This research aims to empirically confirm the institutional theory and the Urban Services Technology Acceptance Model (USTAM) related to factors influencing user satisfaction with the Siswaskeudes application. Exploring...
Exploring Factors Influencing Individual Taxpayer Compliance: A Systematic Literature Review
This study analyzes the development of research on tax compliance published in international journals from 2015 to 2024. Using the Systematic Literature Review (SLR) method, 29 articles were analyzed to identify trends,...
Improving Performance Based on Competency, Work Discipline and Leadership at the Bondowoso Regency Regional Revenue Agency
Every organization, whether government-owned or private-owned, is required to continue to improve its performance in line with increasing competition in all lines of business. This research is aimed at analyzing and dete...
Unveiling the Nexus: Foreign Ownership, Innovation Dynamics, and Firm Performance through a Resource-Based Lens in Vietnam
This study investigates the complex relationships between firm resources, innovation, foreign ownership, and firm performance in the context of Vietnam's emerging market. Using a comprehensive dataset of 17,430 firm-year...
The Influence of Human Resource Capability and Performance Allowances on Employee Work Performance at the Directorate of Regional Budget Planning, Directorate General of Regional Financial Development, Ministry of Home Affairs Indonesia
This study aimed to determine and examine the effect of the ability of human resources and performance allowances individually and collectively on the work performance of employees at the Directorate of Regional Budget P...