Strong Boards and Risk-taking in Islamic Banks Available to Purchase

We acknowledge the financial support from Jan Wallenders and Tom Hedelius Stiftelse, Handelsbanken, Sweden (Project ID P2010-0144: 1). We are grateful to the Editor-in-chief, Prof. Douglas Cumming, the Executive editors, Prof. Chelsea Liu and Prof. Silvio Vismara, and an anonymous reviewer for valuable comments. We gratefully acknowledge the helpful comments and suggestions from Omneya Abdelsalam, Abdullah Mohammed Almansur, Naji M. Al-Shammasi, Mohamad Alzahrani, Balasingham Balachandran, Thorsten Beck, M Shahid Ebrahim, Hisham Farag, Meryem Fethi, Stuart Gillan, Abul Hassan, Kabir Hassan, Wares Karim, Stergios Leventis, William L. Megginson, Elizabeth Ooi, Shams Pathan, Mohamed Shaban, David Skully, Maria Strydom, Pradeep Yadav, and Jin Yu on earlier drafts of the paper. We also thank the discussants and participants at the 61st Midwest Finance Association Meeting, 22–25 February, 2012, New Orleans, USA, the 4th IFABS conference at Valencia, Spain, 18–20 June, 2012, Islamic Finance Conference, Birmingham, 29 September–01 October, 2012, FMA International 2012 meeting, 17–20 October, Atlanta, USA, EAA Annual Meeting, 21–23 May, 2014, Estonia, IBF 2014 conference at Lancaster, 23–24 June, 2014, Durham Business School seminar series, 23 November, 2016, Western Economic Association International, San Diego, 25 June 2017, the 9th Foundation of Islamic Finance Conference, Lancaster, 25 September, 2017, and 2017 KFUPM Islamic Banking and Finance Research Conference, Dammam, 19–20 November, 2017, for their valuable comments. We are grateful to Omar Sikder, Rokonuzzaman, Shakwat Hossain and other research assistants for data collection.