Characteristics of the Sharia Supervisory Board and Risk Taking of Indonesian BPRS

This study aims to analyze the influence of the characteristics of the Sharia Supervisory Board (SSB) on the risk taking of Islamic rural banks (BPRS) in Indonesia during the period 2016 to 2023. The dependent variable in this study is risk taking represented by the standard deviation of ROE (SD_ROE) and the standard deviation of ROA (SD_ROA). The independent variables consist of the number of DPS members (SSB_SIZE), the proportion of women in SSB (SSB_FML), the female SSB chairperson (SSB_FCHR), and SSB ownership (SSB_OWN). Data were analyzed using a robust Fixed Effects Model for SD_ROE and a Random Effects Model for SD_ROA. The results showed that SSB_SIZE negatively affected SD_ROE and SD_ROA, SSB_FCHR negatively affected SD_ROE but not SD_ROA, SSB_OWN negatively affected SD_ROA but not SD_ROE. Unfortunately, this study did not find the effect of SSB_FML on either SD_ROE or SD_ROA.