... control to trading frequency, portfolio concentration, risk-taking and net investment performance, while realized volatility conditions the strength of these relationships. Design/methodology/approach This study uses a theory-calibrated simulated panel of 1,000 heterogeneous investors. Standardized...

... controlling for a set of variables that may influence capital level, the results show a significant negative relationship between PSIA and regulatory capital ratio. This may indicate that the specific nature of PSIA can be a source of excessive risk‐taking in Islamic banks. This behavior is likely to threaten...