The Moderating Role of Education Level Between Commissioner Board and Shariah’s Stock Return: Non-Parametric Approach

The purpose of this paper is to determine the role of education level in moderating the characteristics of the board of commissioners on the returns of Islamic stocks.The approach employs a Robust Path Analysis method utilizing Warp_PLS.The variables used in this research include the number of board of commissioners (BC), the number of meetings (BCM), the independent board of commissioners (IBC), the education level (BCE), and the age of board members (BCA).The research results indicate that the number of board commissioners and the age of board members have a direct influence on the returns of Islamic stocks.At the same time, BCE can moderate the influence of the number of board of commissioners and the independent board of commissioners on the returns of Islamic stocks.The results indicate that education level plays a significant role in the selection of board of commissioners members and that education level can change the direction of the influence of the board of commissioners on Islamic stock returns, thereby providing practical insights for corporate governance and Islamic finance professionals.These results extend the application of agency theory, resource-based view (RBV), and legitimacy theory within Islamic corporate governance, emphasizing that board quality-particularly through education and Shariah competence-is more influential than board structure alone.