Proceedings of the International Colloquium on Business and Economics (ICBE 2022)

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Women in the Boardroom and Financial Soundness-Study at Islamic Banks in Southeast Asia

Authors
Hasan Mukhibad1, *, Doddy Setiawan2, Y. Anni Aryani2, Falikhatun2
1Faculty of Economics, Universitas Negeri Semarang, Semarang, Indonesia
2Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta, Indonesia
*Corresponding author. Email: hasanmukhibad@mail.unnes.ac.id
Corresponding Author
Hasan Mukhibad
Available Online 26 December 2022.
DOI
10.2991/978-94-6463-066-4_14How to use a DOI?
Keywords
Gender Diversity; Islamic bank; Financial Performance; Financial soundness
Abstract

The study of gender diversity of Islamic bank boards (Board of Directors-BOD and Shariah Supervisory Board-SSB) is still limited. The aim of this study is to empirically prove the effect of gender diversity on the board (BOD and SSB) on financial soundness. We use unbalanced panel data on 38 Islamic banks in 5 countries in Southeast Asia with an observation period of 2010–2019. Using Random-effects GLS regression, we found that BOD and SSB gender diversity did not affect financial soundness. However, we found that women in SSB members strengthened the positive effect of BOD gender diversity on financial soundness. The corporate governance structure of Islamic banks, BOD and SSB are jointly involved in making bank business decisions. SSB as a multi-layer governance and completes the duties of BOD as supervisor and advisor in bank operations. The presence of women as SSB members strengthens the relationship between BOD gender diversity and financial soundness. Our results are robust after performing the 2SLS test to address the possible endogeneity problem.

Copyright
© 2022 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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Volume Title
Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
26 December 2022
ISBN
978-94-6463-066-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-066-4_14How to use a DOI?
Copyright
© 2022 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.

Cite this article

risenwbib
TY  - CONF
AU  - Hasan Mukhibad
AU  - Doddy Setiawan
AU  - Y. Anni Aryani
AU  - Falikhatun
PY  - 2022
DA  - 2022/12/26
TI  - Women in the Boardroom and Financial Soundness-Study at Islamic Banks in Southeast Asia
BT  - Proceedings of the International Colloquium on Business and Economics (ICBE 2022)
PB  - Atlantis Press
SP  - 153
EP  - 165
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-066-4_14
DO  - 10.2991/978-94-6463-066-4_14
ID  - Mukhibad2022
ER  -