Does board diversity in Islamic banks matter?
Purpose – This paper discusses the diversity of boards and the performance of Islamic banks in three different conditions. Specifically, I will prove whether the diversity of the board is important for the performance of Islamic banks in normal conditions, turbulence, and recovery. Methodology –...
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| Format: | Article |
| Language: | English |
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Center for Islamic Economics Studies and Development
2023-07-01
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| Series: | Jurnal Ekonomi dan Keuangan Islam |
| Subjects: | |
| Online Access: | https://journal.uii.ac.id/JEKI/article/view/28814 |
| _version_ | 1797773312502267904 |
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| author | Taufiqurrahman |
| author_facet | Taufiqurrahman |
| author_sort | Taufiqurrahman |
| collection | DOAJ |
| description |
Purpose – This paper discusses the diversity of boards and the performance of Islamic banks in three different conditions. Specifically, I will prove whether the diversity of the board is important for the performance of Islamic banks in normal conditions, turbulence, and recovery.
Methodology – The data includes all Islamic and conventional commercial banks in Indonesia during 2018-2022. The research period is divided into normal, turbulent, and recovery conditions. The data were analyzed with a panel regression model.
Findings – The results show that the level of board diversity in Islamic banks is lower than that of their conventional counterparts. In general, the level of board diversity is very important to encourage better bank performance. The effect of board diversity on performance is only significant in recovery conditions, but in times of turbulence, it is the opposite. In addition, I also find that diversity is most important for the BoD, while for the BoC it is the opposite.
Novelty – This study is different from previous research. This study examines the factors of board diversity as a whole and focuses on board diversity as a whole. Therefore, this research will better reflect the actual conditions.
Originality – This is the first paper to study the relationship between board diversity and bank performance in three conditions. It is also the first to compare the effects of diversity on Islamic banks with their conventional counterparts.
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| first_indexed | 2024-03-12T22:04:36Z |
| format | Article |
| id | doaj.art-e8dc971df6bd472d88ecb92ec30703b9 |
| institution | Directory Open Access Journal |
| issn | 2088-9968 2614-6908 |
| language | English |
| last_indexed | 2024-03-12T22:04:36Z |
| publishDate | 2023-07-01 |
| publisher | Center for Islamic Economics Studies and Development |
| record_format | Article |
| series | Jurnal Ekonomi dan Keuangan Islam |
| spelling | doaj.art-e8dc971df6bd472d88ecb92ec30703b92023-07-25T00:35:03ZengCenter for Islamic Economics Studies and DevelopmentJurnal Ekonomi dan Keuangan Islam2088-99682614-69082023-07-0192Does board diversity in Islamic banks matter?Taufiqurrahman0Department of Management, Faculty of Economy, Universitas Riau, Pekanbaru, Indonesia Purpose – This paper discusses the diversity of boards and the performance of Islamic banks in three different conditions. Specifically, I will prove whether the diversity of the board is important for the performance of Islamic banks in normal conditions, turbulence, and recovery. Methodology – The data includes all Islamic and conventional commercial banks in Indonesia during 2018-2022. The research period is divided into normal, turbulent, and recovery conditions. The data were analyzed with a panel regression model. Findings – The results show that the level of board diversity in Islamic banks is lower than that of their conventional counterparts. In general, the level of board diversity is very important to encourage better bank performance. The effect of board diversity on performance is only significant in recovery conditions, but in times of turbulence, it is the opposite. In addition, I also find that diversity is most important for the BoD, while for the BoC it is the opposite. Novelty – This study is different from previous research. This study examines the factors of board diversity as a whole and focuses on board diversity as a whole. Therefore, this research will better reflect the actual conditions. Originality – This is the first paper to study the relationship between board diversity and bank performance in three conditions. It is also the first to compare the effects of diversity on Islamic banks with their conventional counterparts. https://journal.uii.ac.id/JEKI/article/view/28814Islamic bankingboard diversitybank performance |
| spellingShingle | Taufiqurrahman Does board diversity in Islamic banks matter? Jurnal Ekonomi dan Keuangan Islam Islamic banking board diversity bank performance |
| title | Does board diversity in Islamic banks matter? |
| title_full | Does board diversity in Islamic banks matter? |
| title_fullStr | Does board diversity in Islamic banks matter? |
| title_full_unstemmed | Does board diversity in Islamic banks matter? |
| title_short | Does board diversity in Islamic banks matter? |
| title_sort | does board diversity in islamic banks matter |
| topic | Islamic banking board diversity bank performance |
| url | https://journal.uii.ac.id/JEKI/article/view/28814 |
| work_keys_str_mv | AT taufiqurrahman doesboarddiversityinislamicbanksmatter |