Board Gender Diversity and Risk-Taking Behavior of Islamic Bank. A Conceptual Framework

DOI

10.2991/978-2-494069-99-2_10How to use a DOI?

Keywords

Bank risk-taking; Islamic banks; Female director; Bank governance

Abstract

Female directorships become significant contributors to corporate decision-making by targeting 30% of women on the board requirement under the Malaysian Code of Corporate Governance 2017 (MCCG 2017). Gender diversity in board composite attracts attention in corporate governance studies, while vast literature documented that female director have more substantial positive implications on firm performance. In nature, females behave risk-aversion psychologically and are relatively more conservative than men while making decisions. Hence, board gender diversity and firm risk-taking behavior are gaining much interest in academic and industry players to the extent of sustainable socio-economic development. However, there is still not much investigation conducted on the role of female directors in Islamic banks with the stereotype of woman’s lack of opportunities to compete with men in a top high-ranking position, particularly in the Islamic banking environment. This study proposed a conceptual framework to examine the composite of female directors in Islamic banks in Malaysia, with the new targeting proportion of women directorship under MCCG 2017, and the relationship of bank risk-taking behavior. Moreover, this paper also makes an attempt to propose other bank governance and bank-specific characteristics as control variables for analyzing the association between female director and bank risk-taking behavior.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Chee Keong Cheah
AU  - Nakesvari A/P Shanmugam
AU  - Kok Yaw Wong
AU  - Kock Lim Tan
AU  - Hock Siong Ong
AU  - Yin Mei Kong
PY  - 2023
DA  - 2023/02/04
TI  - Board Gender Diversity and Risk-Taking Behavior of Islamic Bank. A Conceptual Framework
BT  - Proceedings of the 10th International Conference on Business, Accounting, Finance and Economics (BAFE 2022)
PB  - Atlantis Press
SP  - 122
EP  - 131
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-494069-99-2_10
DO  - 10.2991/978-2-494069-99-2_10
ID  - Cheah2023
ER  -