| dc.description.abstract | This paper mainly discusses how Shariah (Islamic law), ownership structure, and growth opportunity affect the level of corporate risk taking, and uses 398 listed companies in Indonesia from 2012 to 2019 with a total of 2262 observations as sample for empirical analysis. This paper divided ownership structure into insider ownership, government ownership, Indonesian local institutional ownership and foreign institutional ownership for discussion. The empirical results found that companies that follow the Shariah (Islamic law) have lower risk-taking, but among the interaction between the ownership structure and the Shariah(Islamic law), only higher institutional ownership ratio have higher level of risk-taking, while Indonesian domestic institutional ownership ratio hold a significant negative correlation with risk taking. This article further analyzes the impact of growth opportunity and finds that under high growth opportunities, the foreign institutional ownership ratio and Shariah (Islamic law) have a positive impact on risk-taking. Shows that different type of ownership structure will have different considerations for the pursuit of economic rent which been created by growth opportunities. The more performance-oriented ownership structure, such as foreign shareholding, more able to neutralize the influence of conservative Shariah (Islamic law) on risk-taking. This paper contributes to management practices, that is, implicit religious beliefs and explicit corporate governance mechanisms are important factors that affect the company′s risk-taking. Investors must measure and consider when making investment decisions. | en_US |