Strong boards and risk-taking in Islamic banks

Sabur Mollah, Michael Skully, Eva Liljeblom

Research output: Contribution to journalArticleResearchpeer-review


This paper examines whether variations in strong boards explain the differences between risk-taking in Islamic and conventional banks. From an analysis of a pooled sample of Islamic and conventional banks, we find that strong boards in general serve their shareholders through engaging in higher risk-taking activities across both types of banks. In Islamic banks, however, the Shari’ah Supervisory Board (SSB) is found to mitigate risk-taking when integrated with a strong board, as religiosity restrains risk-taking.
Original languageEnglish
Pages (from-to)135-180
Number of pages46
JournalReview of Corporate Finance
Issue number1-2
Publication statusPublished - 2021


  • Strong board
  • SSB
  • religiosity
  • risk-taking
  • Islamic banks
  • conventional banks

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