Analysis reveals corporate governance and gender diversity impact credit risk in Islamic banks, suggesting stronger risk management practices may arise from these factors.
Key Points
Bank risk decreases with gender diversity in management, and this finding underscores the role of corporate governance in Islamic banks.
The analysis shows a significant relationship between managerial gender diversity and credit risk, as well as endogeneity concerns addressed.
Estimation utilized multiple econometric methods, including the system-generalized method of moments to handle dynamic panel data.
Increasing the number of women and educated managers may improve governance and decision-making in Islamic financial institutions.