Corporate governance and Islamic law compliance risk
This study examines the influence of the Shariah Supervisory Board (SSB), Board of Directors (BOD), Risk Officers (RO), Audit Committee, and market competition (Lerner) on the Islamic Law Compliance Risk (ILCR). We use a sample of full-fledged Islamic banks in Indonesia with an observation period of...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2111057 |
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| author | Hasan Mukhibad Ahmad Nurkhin Kuat Waluyo Jati Prabowo Yudo Jayanto |
| author_facet | Hasan Mukhibad Ahmad Nurkhin Kuat Waluyo Jati Prabowo Yudo Jayanto |
| author_sort | Hasan Mukhibad |
| collection | DOAJ |
| description | This study examines the influence of the Shariah Supervisory Board (SSB), Board of Directors (BOD), Risk Officers (RO), Audit Committee, and market competition (Lerner) on the Islamic Law Compliance Risk (ILCR). We use a sample of full-fledged Islamic banks in Indonesia with an observation period of 2009–2019. Data analysis uses Fixed Effect Model (FEM). Our results show that SSB and BOD are not proven to be able to control ILCR. ILCR can be decreased by increasing the number of audit committees and the proportion of independent RO. In addition, the Lerner index has a positive influence ILCR. The results of the robustness test also confirm the results of this study. This research extends the previous studies on evaluating the risk-taking of Islamic Banks beyond the common risk (insolvency, liquidity, credit, and market), particularly the unique risks faced by Islamic banks. This study recommends increasing the effectiveness of SSB and BOD supervision on bank operations, increasing the ILCR. |
| format | Article |
| id | doaj-art-ca6c62b1f40b4c098534a37191f1179f |
| institution | DOAJ |
| issn | 2332-2039 |
| language | English |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-ca6c62b1f40b4c098534a37191f1179f2025-08-20T03:22:21ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2111057Corporate governance and Islamic law compliance riskHasan Mukhibad0Ahmad Nurkhin1Kuat Waluyo Jati2Prabowo Yudo Jayanto3Economics Faculty, Universitas Negeri Semarang, Semarang, IndonesiaEconomics Faculty, Universitas Negeri Semarang, Semarang, IndonesiaEconomics Faculty, Universitas Negeri Semarang, Semarang, IndonesiaEconomics Faculty, Universitas Negeri Semarang, Semarang, IndonesiaThis study examines the influence of the Shariah Supervisory Board (SSB), Board of Directors (BOD), Risk Officers (RO), Audit Committee, and market competition (Lerner) on the Islamic Law Compliance Risk (ILCR). We use a sample of full-fledged Islamic banks in Indonesia with an observation period of 2009–2019. Data analysis uses Fixed Effect Model (FEM). Our results show that SSB and BOD are not proven to be able to control ILCR. ILCR can be decreased by increasing the number of audit committees and the proportion of independent RO. In addition, the Lerner index has a positive influence ILCR. The results of the robustness test also confirm the results of this study. This research extends the previous studies on evaluating the risk-taking of Islamic Banks beyond the common risk (insolvency, liquidity, credit, and market), particularly the unique risks faced by Islamic banks. This study recommends increasing the effectiveness of SSB and BOD supervision on bank operations, increasing the ILCR.https://www.tandfonline.com/doi/10.1080/23322039.2022.2111057Islamic law compliance risknon-halal incomeshariah complianceShariah Supervisory Boardrisk officer |
| spellingShingle | Hasan Mukhibad Ahmad Nurkhin Kuat Waluyo Jati Prabowo Yudo Jayanto Corporate governance and Islamic law compliance risk Cogent Economics & Finance Islamic law compliance risk non-halal income shariah compliance Shariah Supervisory Board risk officer |
| title | Corporate governance and Islamic law compliance risk |
| title_full | Corporate governance and Islamic law compliance risk |
| title_fullStr | Corporate governance and Islamic law compliance risk |
| title_full_unstemmed | Corporate governance and Islamic law compliance risk |
| title_short | Corporate governance and Islamic law compliance risk |
| title_sort | corporate governance and islamic law compliance risk |
| topic | Islamic law compliance risk non-halal income shariah compliance Shariah Supervisory Board risk officer |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2111057 |
| work_keys_str_mv | AT hasanmukhibad corporategovernanceandislamiclawcompliancerisk AT ahmadnurkhin corporategovernanceandislamiclawcompliancerisk AT kuatwaluyojati corporategovernanceandislamiclawcompliancerisk AT prabowoyudojayanto corporategovernanceandislamiclawcompliancerisk |