Risk management and corporate governance of Islamic banks: evidence from GCC countries

Reyad, Sameh; Chinnasamy, Gopalakrishnan; Madbouly, Araby

doi:10.1108/cg-08-2020-0360

Cited by 9 publications

(7 citation statements)

References 47 publications

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“…This indicates that the perception of the relevance of internal controls influences how internal control performers and reviewers perceive their subsidiary’s specific internal control reports. This result is consistent with the literature that maintains that more reliable controls would tend to generate higher quality reports (Hu et al , 2021), in particular, when anchored in risk assessment, management and mitigation practices (Reyad et al , 2022). This has implications for company performance, capital retention, financial constraints, fraud, among others (Sabbaghi, 2016).…”

Section: Resultssupporting

confidence: 91%

“…Based on the relevance of the companies’ internal control risk management reports (Reyad et al , 2022), as well as on the worldwide known accounting scandals, the USA disclosed internal control reports mandatory by the Sarbanes–Oxley Act (SOX) of 2002 (Hooghiemstra et al , 2015). Other countries also follow this path of regulating corporate governance structures, in which the board of directors sets goals and objectives for the corporation and then monitors the company’s progress toward achieving them, making the internal control system a component essential to these mechanisms (Akisik and Gal, 2017).…”

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

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Relevance of internal controls for risk management: empirical evidence from the perception of its executors and reviewers in a multinational company

Beuren

Machado

Agnol

2023

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Purpose The perception of the relevance of risk management reports and the system of internal controls permeates the risk management of multinational companies. Shedding light on perceived relevance, on the one hand, can serve as a guide for improvements in communication between headquarters and subsidiaries; on the other hand, it can lead to greater involvement of subsidiaries in company policies. Thus, this study aims to analyze the relevance of internal controls for risk management in the perception of its executors and reviewers in a multinational company. Design/methodology/approach A survey was conducted with the executors and reviewers of the internal controls of a multinational company. To the collected data, structural equation modeling was applied. Findings The perceived relevance of internal controls by the subsidiaries directly and positively influences the perceived relevance of the reporting of their specific and standardized reports for all subsidiaries. In addition, the perception of the relevance of standardized reports for all subsidiaries demonstrates a direct and positive influence on the familiarity with the regulations regarding the reporting of internal controls. Originality/value To the best of the authors’ knowledge, this paper is the first to examine the relevance of internal controls for risk management in the perception of its executors and reviewers of subsidiaries of a multinational company. In this way, it provides a useful contribution to the literature and insights to promote improvements in the communication process between headquarters and subsidiaries of different countries regarding risk management reports and the system of internal controls.

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Section: Resultssupporting

confidence: 91%

Section: Theoretical Framework and Hypothesesmentioning

confidence: 99%

Relevance of internal controls for risk management: empirical evidence from the perception of its executors and reviewers in a multinational company

Beuren

Machado

Agnol

2023

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“…The listed companies were considered as the major sample in the corporate governance studies with a representation of 4.53% (Briozzo et al , 2019; Githaiga and Kosgei, 2022; Liu, 2016; Merendino and Melville, 2019; Mgammal et al , 2018; Hassan et al , 2019; Sewpersadh, 2019), while Islamic banks consisted of 3.12% of the total topics (Aslam and Haron, 2020, 2021b; Nawaz, 2017; Reyad et al , 2022; Basiruddin and Ahmed, 2020; Khalil and ben Slimene, 2021).…”

Section: Results Of Bibliometric and Content Analysesmentioning

confidence: 99%

Bibliometric analysis on corporate governance topics published in the journal ofCorporate Governance: The International Journal of Business in Society

Ellili

2022

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Purpose This study aims to highlight the current trends in the literature on corporate governance by applying a bibliometric review of papers on corporate governance topics published in the journal of Corporate Governance: The International Journal of Business Society (Bingley). Design/methodology/approach Bibliometric analysis is a quantitative and qualitative approach applied to bibliographic materials that highlights the core theoretical and empirical contributions to a specific research field. This analysis was based on keyword cartography, bibliometric authors’ citation analysis, bibliometric papers’ co-citation analysis, bibliometric references’ co-citation analysis, journals’ co-citation cartography and qualitative content analysis. It reviews 353 articles on corporate governance published in the journal of Corporate Governance (Bingley). Bibliometric analysis was performed using VOSviewer, and content analysis was performed using WordStat. Findings The results identify three major clusters: corporate governance; board of directors; and firm performance. In addition, the results reveal that the journal Corporate Governance (Bingley) has experienced increasingly important growth in research papers on corporate governance topics and citations, reflecting its significant contribution to the corporate governance research field. This study also presents recommendations for future research in this field. Practical implications The findings of this study have implications for corporate governance research, such as the impact of ownership structure and the board of directors on environmental, social and governance disclosure. To the best of the authors’ knowledge, this study is the only one to review the key corporate governance research topics on which papers published in the journal of Corporate Governance (Bingley) are focused and can be largely used for corporate governance practices. Originality/value This study provides an overview of how the literature on corporate governance research has developed, as well as a summary of the most influential authors, along with countries, organizations and journal sources. This offers an opportunity for future research to focus on this topic.

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“…TQM allows for making processes more transparent, identifies critical points in banking processes and develops an adequate measurement system in relation to those critical points (Williams et al, 2006;Banna et al, 2016;Al Khasabah et al, 2022). In a historical moment in which credit and financial institutions do not enjoy a favorable reputation (Bushman and Wittenberg-Moerman, 2012;Ruiz et al, 2016), the principles and tools of TQM, more than in the past, are decisive for defining competitive advantages and mitigations of different kinds of risk (Powell, 1995;Yunis et al, 2013;Reyad et al, 2022). The Basel Committee on Banking Supervision has highlighted that operational risk is one of the most dangerous types of risk.…”

Section: Introductionmentioning

confidence: 99%

“…, 2016), the principles and tools of TQM, more than in the past, are decisive for defining competitive advantages and mitigations of different kinds of risk (Powell, 1995; Yunis et al. , 2013; Reyad et al. , 2022).…”

Section: Introductionmentioning

confidence: 99%

Innovative profiles of TQM in banking management. The relationship between employee training and risk mitigation

Testa

D’Amato

Singh

et al. 2023

TQM

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PurposeThis paper aims to investigate the relationship between employee training and bank risk to verify whether and to what extent an increase in employee training, as a soft component of total quality management (TQM), affects bank risk.Design/methodology/approachThe research adopts a panel regression, based on a unique dataset of a sample of Italian banks over the period 2011–2018, to test whether employee training affects bank risk, measured alternatively in terms of Z-score, a proxy of bank stability and non-performing loans (NPLs)/gross loans ratio as a proxy of credit risk.FindingsResearch findings reveal that increasing employee training leads to growing bank stability. In contrast, credit risk is not affected by employee training. However, by investigating training heterogeneity, this study found that the increase in the number of managerial training hours, as a proxy for soft skills training, negatively impacts credit risk. Therefore, an increase in soft skills leads to a reduction in bank credit risk.Research limitations/implicationsThis study provides empirical evidence in support of the relationship between employee training and bank risk, which seems novel in the literature. From a managerial point of view, this study highlights the need for banks to pay attention to the skills, particularly soft skills, that banks' employees must possess to effectively manage bank risk and, more specifically, the core bank risk.Originality/valueEmpirical evidence on the relationship between employee training, soft/hard skills and bank risk appears limited if not absent. Therefore, the findings provide insights for a more nuanced interpretation of variables that affect bank risk.

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Risk management and corporate governance of Islamic banks: evidence from GCC countries

Cited by 9 publications

References 47 publications

Relevance of internal controls for risk management: empirical evidence from the perception of its executors and reviewers in a multinational company

Relevance of internal controls for risk management: empirical evidence from the perception of its executors and reviewers in a multinational company

Bibliometric analysis on corporate governance topics published in the journal ofCorporate Governance: The International Journal of Business in Society

Innovative profiles of TQM in banking management. The relationship between employee training and risk mitigation

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