Proceedings of the 10th International Conference on Business, Accounting, Finance and Economics (BAFE 2022)

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Islamic Bank Audit Committee and Risk-Taking Behavior. A Conceptual Framework

Authors
Chee Keong Cheah1, *, Kok Yaw Wong2, Kock Lim Tan3, Hock Siong Ong1, Yin Mei Kong2, Devagi Erusan4
1Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Jalan Universiti, Bandar Barat, 31900, Kampar, Perak, Malaysia
2Tunku Abdul Rahman University College, Jalan Kolej, Taman Bandar Baru, 31900, Kampar, Perak, Malaysia
3School of Business, UOW Malaysia KDU Penang University College, 32, Jalan Anson, George Town, 10400, George Town, Pulau Pinang, Malaysia
4Centre for Foundation Studies, Universiti Tunku Abdul Rahman, Jalan Universiti, Bandar Barat, 31900, Kampar, Perak, Malaysia
*Corresponding author. Email: cckeong@utar.edu.my
Corresponding Author
Chee Keong Cheah
Available Online 4 February 2023.
DOI
10.2991/978-2-494069-99-2_12How to use a DOI?
Keywords
Islamic bank; Risk-taking behavior; Audit committee
Abstract

This study intends to investigate the impact of bank audit committees’ composite and bank risk-taking behavior in Malaysia from 2010 to 2019. The audit committee is accountable for assuring the accuracy of financial reporting disclosure, interacting with internal and external audit functions to strengthen the controls’ function. The Islamic bank in Malaysia are required to adhere the Shariah compliance framework in their operational activities under the IFSA 2013. Following this, the Bank Negara of Malaysia (BNM) introduced new policy documents on corporate and Shariah governance in 2016 and 2019 respectively to further promote prudent risk management practices among Islamic banks in the nation. Audit committees play a crucial role in monitoring the risk-taking operations of banks to meet regulatory and relevant stakeholders’ compliance requirements. Existing literature acknowledges the role of audit committees’ effectiveness and corporate profitability performance relationship in non-banking sectors. This paper attempts to conduct an empirical study using the static panel data regression technique to examine the relationship between bank risk-taking and audit committees by comparing the composite changes over time to determine the effectiveness.

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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Volume Title
Proceedings of the 10th International Conference on Business, Accounting, Finance and Economics (BAFE 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
4 February 2023
ISBN
978-2-494069-99-2
ISSN
2352-5428
DOI
10.2991/978-2-494069-99-2_12How to use a DOI?
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.

Cite this article

risenwbib
TY  - CONF
AU  - Chee Keong Cheah
AU  - Kok Yaw Wong
AU  - Kock Lim Tan
AU  - Hock Siong Ong
AU  - Yin Mei Kong
AU  - Devagi Erusan
PY  - 2023
DA  - 2023/02/04
TI  - Islamic Bank Audit Committee and Risk-Taking Behavior. A Conceptual Framework
BT  - Proceedings of the 10th International Conference on Business, Accounting, Finance and Economics (BAFE 2022)
PB  - Atlantis Press
SP  - 149
EP  - 158
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-2-494069-99-2_12
DO  - 10.2991/978-2-494069-99-2_12
ID  - Cheah2023
ER  -