Board Characteristics and Islamic Bank Performance

Abstract

This study examines the influence of board characteristics on bank performance with size as the moderating variable. The study was performed on Sharia Commercial Bank (BUS, Bank Umum Syariah) in Indonesia for period 2010-2019. This study used samples of 127 BUS-year observation. The data was analyzed by applying ordinary least square method and was processed by Warp-PLS application. Board characteristics is served as proxy variables with board of directors size, board of directors meetings and female board of directors, while bank performance is served as a proxy with Return On Asset. The result conveyed that female directors in the board and board of directors meeting affect positively and significantly over Return On Asset. However, the impact of board of directors size is insignificant on Return On Asset. Furthermore, the result showed that size moderates negativity and significance of board of directors influence and board of directors meeting on Return On Asset. However, size is insignificant in moderating the influence of female directors in the board over Return On Asset.