An evaluation of corporate governance practices of Islamic banks versus Islamic bank windows of conventional banks

Bukhari, Khuram Shahzad; Awan, Hayat Muhammad; Ahmed, Faareha

doi:10.1108/01409171311315003

Cited by 47 publications

(13 citation statements)

References 34 publications

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“…In case of Islamic banking no consensus have found regarding the BS and firm performance e.g. Grassa and Matoussi (2014), Quttainah (2013) and Shahzad Bukhari et al (2013) found positive relationship between BS and performance and Mollah and Zaman,(2015), Bukair and Rahman (2015) found negative relationship, whereas Grassa et al (2010) and Juras and Hinson (2008) found no association.…”

Section: Literature Review and Formulation Of Hypothesesmentioning

confidence: 99%

The impact of Shari’ah and corporate governance on Islamic banks performance: evidence from Asia

Khan

Zahid

2020

IMEFM

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Purpose This study aims to investigate the impact of Shari’ah and corporate governance on Islamic banks performance in Asia. Design/methodology/approach The study uses hand collected data set on Shari’ah and corporate governance variables of 79 Islamic banks of 19 countries of Asia, for the period of 2011-2016. Augmented Mollah et al. (2017) composite corporate governance index into Islamic corporate governance (ICG) index by incorporate Shari’ah board’s (SBs) attributes. Two types of statistical analysis were performed; descriptive statistics, sample t-test and panel random effects regression. The analysis was further sub-sampled by considering the supervisory vs advisory, GCC vs non-GCC and large vs small effects of Shari’ah and corporate boards on Islamic banks performance. Findings The results of the baseline model reveal that Shari’ah governance-related variables are more influential in determining the financial performance of the Islamic banks. The sub-sampled data findings illustrated some interesting facts. Shari’ah supervisory vs advisory boards regression results show that the ICG index was found significant in both the models. However, when SBs are weak the general board dominates in determining the performance. GCC vs non-GCC results show a relatively good governance in non-GCC countries. While, in case of large vs small Islamic banks, banks having high total assets demonstrates sound governance characteristics. Research limitations/implications Independent, large and educated SB can play a significant role in removing the hurdles facing the Islamic banking industry and can also enhance stakeholders’ value. Originality/value This study enriches the understanding on Shari’ah governance, corporate governance and financial performance of Islamic banks in Asia.

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Section: Literature Review and Formulation Of Hypothesesmentioning

confidence: 99%

The impact of Shari’ah and corporate governance on Islamic banks performance: evidence from Asia

Khan

Zahid

2020

IMEFM

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“…Banks manage the funds of different account holders and investors and such activities of banks make it more important to emphasis on corporate governance in a greater extent than other corporate bodies because any delinquency from the bank side may have confrontational effect on its stakeholders and may conceivably stimulate the rise to agency issues and conflict of interest between the management and those who have exposed their faith in banking with the banks for superior management of their funds. Understanding the importance of corporate governance, many countries have established their own codes of conduct for effective corporate governance based on some common issues applicable throughout the world along with some country specific characteristics (Shahzad, Awan and Ahmed, 2013;Dincer & Kilinç 2018).…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance and Risk Disclosures: A Comparative Analysis Between Bangladeshi and Malaysian Islamic Banks

Kabir¹,

Sobhani²,

Omar³

et al. 2019

IJFR

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Corporate governance provides a fundamental framework to oversee corporate conduct and ensures transparency of institutions like banks. In case of Islamic banks, it adds additional importance as the profit sharing (with the depositors) system enhances the chance of agency problem for such institutions. Again, risks are inherent in institutions like Islamic banks, which necessitate the investors to get proper information about the risk encountered by the banks in which they invest. Thus, corporate governance and risk disclosures bear utmost importance. Since Malaysian banking industry has already experienced a favorable growth of Islamic banking and Bangladesh is observing a rapid growth of popularity of Islamic banking, a comparative study has been undertaken between Malaysian and Bangladeshi Islamic banks regarding corporate governance and risk disclosures in annual reports. Content analysis technique has been applied to facilitate the comparison. Both quantity and quality of risk reporting of the sample companies have been evaluated. A corporate governance disclosure index has been developed by following the guidelines provided by Bangladesh Security and Exchange Commission (BSEC) and the principles laid down in the ‘Guidelines on Corporate Governance for Licensed Islamic Banks in Malaysia’ to explore and compare the degree of good corporate governance and relevant disclosures in the annual reports. It is hypothesized that corporate governance and risk disclosure will vary between Malaysian and Bangladeshi Islamic Banks. It is also argued that the corporate risk disclosures will be positively associated with the quality of the ﬁrm’s corporate governance mechanisms. Results are generally supportive of hypotheses. At the end, implications for theory and practices are discussed in the study.

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“…DPS dianggap efektif ketika DPS mampu meningkatkan legitimasi Syariah bank Syariah. Adapun Bukhari, Awan, & Ahmed (2013) dan Firdausi & Sulung (2019) memaparkan metode pendekatan sumber (resource approach) yang menghubungkan efektivitas organisasi dengan faktor input personal atau kualitas, kriteria, dan karakteristik personal anggota organisasi sebagai alternatif cara pengukuran efektivitas kinerja suatu organisasi. Hal itu senada dengan pendapat Verriest, Gaeremynck, & Thornton (2013) yang menyatakan bahwa efektivitas kinerja DPS diukur dengan indeks agregat yang disusun berdasarkan karakteristik DPS.…”

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Karakteristik Dewan Pengawas Sebagai Determinan Kinerja Sosial Bank Syariah

Dewindaru

Saleh

Muhammad

2019

jamal

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Karakteristik Dewan Pengawas sebagai Determinan Kinerja Sosial Bank Syariah. Penelitian ini mencoba untuk menguji sejumlah karakteristik dewan pengawas dan pengaruhnya pada aspek kinerja sosial bank Syariah di Indonesia. Analisis regresi model random effect dipilih sebagai metode dengan Bank Umum Syariah 2012-2017 sebagai sampel. Penelitian ini menemukan bahwa keahlian keuangan dan frekuensi rapat mampu memacu kinerja sosial bank syariah. Hal ini terjadi karena kompetensi wajib dewan pengawas adalah bidang keuangan. Selain itu, indikasi koordinasi dan pengawasan kerja diukur dari intensitas rapat. Oleh karena itu, bank syariah perlu memperhatikan kompetensi dan kapabilitas perekrutan dewan pengawas.

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An evaluation of corporate governance practices of Islamic banks versus Islamic bank windows of conventional banks

Cited by 47 publications

References 34 publications

The impact of Shari’ah and corporate governance on Islamic banks performance: evidence from Asia

The impact of Shari’ah and corporate governance on Islamic banks performance: evidence from Asia

Corporate Governance and Risk Disclosures: A Comparative Analysis Between Bangladeshi and Malaysian Islamic Banks

Karakteristik Dewan Pengawas Sebagai Determinan Kinerja Sosial Bank Syariah

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