Audit Committee Characteristics, Board Structure, and Bank Risk: Evidence from Indonesia

Abstract

This study seeks to assess how the characteristics of the audit committee, board of commissioners, and size of a bank influence its risk. This study employed linear regression analysis to evaluate the impact of independent variables, which include accounting or financial expertise, the presence of women on the audit committee, the size of the audit committee, the independence of the board of commissioners, the size of the board of commissioners, and the size of the bank, on the dependent variable, bank risk. The findings indicate that accounting or financial expertise, female audit committee members, the size of the board of commissioners, and bank size significantly reduce bank risk. The independence of the board of commissioners has a negative but insignificant impact on bank risk, while the size of the audit committee has a positive but insignificant effect on bank risk.