Research Article
Board Director’s Age and Compensation on Islamic Banking Risk Taking
@INPROCEEDINGS{10.4108/eai.27-10-2020.2304177, author={Muhtadin Amri and Gista Neli Mariskha and Gea Rofiqoh Hasanah}, title={Board Director’s Age and Compensation on Islamic Banking Risk Taking}, proceedings={Proceedings of the 2nd International Conference on Islamic Studies, ICIS 2020, 27-28 October 2020, Ponorogo, Indonesia}, publisher={EAI}, proceedings_a={ICIS}, year={2021}, month={2}, keywords={age; management compensation; islamic banking risk taking level}, doi={10.4108/eai.27-10-2020.2304177} }- Muhtadin Amri
Gista Neli Mariskha
Gea Rofiqoh Hasanah
Year: 2021
Board Director’s Age and Compensation on Islamic Banking Risk Taking
ICIS
EAI
DOI: 10.4108/eai.27-10-2020.2304177
Abstract
The purpose of this study is to determine the effect of board of director’s age and compensation on the level of Islamic banking risk-taking in Indonesia. The population in this study is Islamic Banking in Indonesia. Sample selection using purposive sampling method with 39 annual reports of Islamic banks in Indonesia during 2014 - 2018. This study uses multiple linear regression test. The results showed evidence that the age of directors and directors' compensation have a significant negative effect on company risk-taking. Meanwhile, control variables namely company size and ROA showed no significant effect on company risk-taking. So, this study cannot prove the influence of the size of the company which is proxied by the total value of the company's assets and profitability which is proxied by the value of the ROA ratio on the level of risk-taking in Islamic banking in Indonesia.
