The purpose of the study is to examine whether audit committee characteristics influence the risk taking of the Islamic financial institutions (IFIs) in Bangladesh. The study conducts dynamic short panel data regarding annual report of quoted 14 IFIs in Bangladesh during the period 2013–2018. Particularly the studies examined with first and second lag of dependent variables are applied under GMM model in Stata software. Risk taking is the most concerning issues and to measure it the study findings reveal that the audit committee size is significant positive effect on risk taking and it also documented that accounting and financial expertise in AC is significant negative relationship with risk taking. The results of the study add a new dimension to the research that could be a valuable source of knowledge for policy makers and regulators in private commercial banks in Bangladesh. However, other audit elements in committee characteristics, such as, ACs’ attendance in meeting and owners’ identity, are not covered in this measurement. Future studies could extend the analyses by including these and other personal characteristics of directors to provide additional useful insights to this line of literature.
Md Mohidul Islam, Abul Bashar Bhuiyan, Aza Azlina Md Kassim, Salina Rasli. The effect of audit committee characteristics and risk-taking among islamic financial institutions in Bangladesh. International Journal of Multidisciplinary Research and Development, Volume 8, Issue 7, 2021, Pages 13-17