| dc.description.abstract | The main purpose of this study is examining how Shariah, corporate governance, and growth opportunity affect corporate risk-taking. Based on a sample of Indonesian listed company over the period of 2011-2018, a total of 2740 observations were used for our empirical analysis. Islam is one of the world’s largest religions, and its doctrine has a profound impact on Muslims’ thoughts and behavior. In addition, Indonesia is located in Southeast Asia as a fast-growing country. We investigate managers’ attitude to the risk through Shariah and practical corporate governance mechanisms. Moreover, we consider growth opportunities as an external factor to observe the moderate effect to the risk-taking. Our research shows that: Shariah companies compare to non-Shariah companies have lower risk; the larger size of board of directors that the Shariah compliant companies have, the higher risk they take; in the part of board independence in the Shariah compliant companies, there are opposite results between the board of commissioners and the board of directors; in the part of ownership structure in the Shariah compliant companies, the more shares that institutions or insiders hold, the more risk the companies take. Furthermore, when taking growth opportunity into account, we find that the higher the insiders’ shareholding ratio, the lower the risk taking. Overall, the empirical results of this paper have implications for management and practice on how religion affects managerial behavior and the role of religion and internal governance mechanisms in emerging markets. | en_US |