Shari’ah Governance and Islamic Banks Performance: Evidence from South Asia

Khan, Imran; Zahid, Syeda Nitasha; Akhtar, Tahir

doi:10.21621/sajms.2018122.04

Cited by 11 publications

(23 citation statements)

References 35 publications

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“…Empirically, measuring financial performance of Islamic banks can use the proxies of earning ability or profitability, which has been conducted by Buallay (2019), Ajili and Bouri (2018), Farag et al (2018), Hakimi et al (2018), Khan et al (2018), Nomran et al (2018), Almutairi and Quttainah (2017), Mollah and Zaman (2015), and Matoussi and Grassa (2012).…”

Section: Background Of the Studymentioning

confidence: 99%

“…SSB expertise can consist of accounting, economics, business and law (Ginena & Hamid, 2015;Hassan et al, 2010). SSB is demanded not only for its sharia education, but also for expertise because banks are complex business entities (Ginena & Hamid, 2015;Khan et al, 2018). If SSB members have these qualifications of expertise, it will increase the effectiveness of SSB's duties, responsibilities and functions.…”

Section: Ssb Expertisementioning

confidence: 99%

“…Previous studies of SSB focus more on the relationship between characteristics of SSB to bank performance. The characteristics of SSB used in that studies including SSB size (Farag et al, 2018), SSB size and education (Khan et al, 2018), SSB size and expertise (Hakimi et al, 2018;Matoussi & Grassa, 2012) and SSB size, education and expertise (Almutairi & Quttainah, 2017).…”

Section: Introductionmentioning

confidence: 99%

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The influence of the SSB’s characteristics toward Sharia compliance of Islamic banks

Muhammad

Annuar

Taufik

et al. 2021

Cogent Business & Management

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This paper aims to examine the influence of SSBs' characteristics toward Sharia compliance of Islamic banks in Asia and Gulf Cooperation Council (GCC). An epistemological model of the unity of knowledge was applied to determine the contribution of SSB to the Sharia compliance of Islamic banks that can create the well-being. The samples in this study are Islamic banks in Asia and Gulf Cooperation Countries (GCC) for the period of 2010 to 2018. The characteristics of SSB consist of the number of SSB members, cross membership, level of education, expertise, remuneration and rotation. This study analyzes the data using data panel regression with software of reviews. This study finds that SSB size has negative influence while education and expertise have positive influence toward sharia compliance of Islamic banks. Meanwhile, cross membership, remuneration and rotation of SSB members do not influence sharia compliance of Islamic banks. In general, the role of SSB in carrying out the function of creating well-being for the community has not ABOUT THE AUTHORS

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Section: Background Of the Studymentioning

confidence: 99%

Section: Ssb Expertisementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The influence of the SSB’s characteristics toward Sharia compliance of Islamic banks

Muhammad

Annuar

Taufik

et al. 2021

Cogent Business & Management

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“…Second, considering Islamic banks’ limited level of tax avoidance literacy, they do not understand the underlying principles of tax avoidance. Put simply, empirical research on Islamic banks typically focuses on linking SSB characteristics with financial performance, as evidenced by Abdallah and Bahloul (2021), Buallay (2019), Ajili and Bouri (2018), Farag et al (2018), Hakimi et al (2018), Khan et al (2018), Almutairi and Quttainah (2017), Nomran et al (2018), Nomran et al (2017), Mollah and Zaman (2015) and Matoussi and Grassa (2012) or linking SSB characteristics with compliance with prevailing Shari’ah laws, as evidenced by Muhammad et al (2021) and Alam et al (2021); however, it has been difficult to identify SSB characteristics literacy that has the potential to reduce tax avoidance practices.…”

Section: Resultsmentioning

confidence: 99%

Can Shari’ah supervisory board and Islamic bank characteristics reduce tax avoidance? Evidence in Indonesia and Malaysia

Taufik

2022

JFC

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Purpose This study aims to shed light on Shari’ah supervisory boards (SSBs) and the possibilities of Islamic banks to reduce the tax avoidance. Performance and Shari’ah compliance have been extensively studied; however, tax avoidance remains a challenge. Design/methodology/approach SSB characteristics, based on resource dependence theory, influence tax avoidance, including SSB size, educational level, expertise, reputation, remuneration and turnover. The samples were obtained from Islamic banks in Indonesia and Malaysia (2010–2020) using the data panel method. Findings Islamic banks avoid taxes through the effective tax rate and book tax difference. SSBs who have more expertise play a role in investigating the complexity of tax avoidance, and SSB reputation, who is a member of the Islamic bank regulator, understands immorality, resulting in reduced tax avoidance. Moreover, the recruitment system has been effective, as SSBs with more expertise have become more prevalent. Meanwhile, SSB from a Shari’ah background works only in regulated areas, simplifying Shari’ah compliance, in particular, attestation of financial reporting. A heavy workload is created by cross-membership, resulting in the neglect of the immoral value of tax avoidance. The calculation of tax avoidance also includes remuneration and bank assets. Practical implications Given the uniqueness of Islamic banks contributing to social welfare, tax regulators need to review the appropriateness of fees that can be treated as taxes. Tax regulators can join hands with Islamic bank regulators on this review. Originality/value To the best of the authors’ knowledge, this study is one of the first to examine the characteristics of SSBs and Islamic banks on tax avoidance. Separating Islamic banks by country enriches the analysis.

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“…The findings of Basiruddin and Ahmed (2019) showed that the Shariah committee reduced the Shariah non-compliant risk. Meanwhile, Khan, Zahid, and Akhtar (2018) has concluded that larger Shari'ah boards, which is similar to Shariah committees in Malaysia, can enhance the value of the Islamic banks. The reason is that such board members have various ethical and religious backgrounds; combining their educational credentials and professional experience, which larger size will assist the board of directors in addressing Shariah-compliant activities in the banks.…”

Section: Shariah Committeementioning

confidence: 99%

Board Gender Diversity and Risk-Taking Behavior of Islamic Bank. A Conceptual Framework

Cheah¹,

Shanmugam²,

Wong³

et al. 2023

Advances in Economics, Business and Management Research

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Female directorships become significant contributors to corporate decision-making by targeting 30% of women on the board requirement under the Malaysian Code of Corporate Governance 2017 (MCCG 2017). Gender diversity in board composite attracts attention in corporate governance studies, while vast literature documented that female director have more substantial positive implications on firm performance. In nature, females behave risk-aversion psychologically and are relatively more conservative than men while making decisions. Hence, board gender diversity and firm risk-taking behavior are gaining much interest in academic and industry players to the extent of sustainable socioeconomic development. However, there is still not much investigation conducted on the role of female directors in Islamic banks with the stereotype of woman's lack of opportunities to compete with men in a top high-ranking position, particularly in the Islamic banking environment. This study proposed a conceptual framework to examine the composite of female directors in Islamic banks in Malaysia, with the new targeting proportion of women directorship under MCCG 2017, and the relationship of bank risk-taking behavior. Moreover, this paper also makes an attempt to propose other bank governance and bank-specific characteristics as control variables for analyzing the association between female director and bank risk-taking behavior.

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Shari’ah Governance and Islamic Banks Performance: Evidence from South Asia

Cited by 11 publications

References 35 publications

The influence of the SSB’s characteristics toward Sharia compliance of Islamic banks

The influence of the SSB’s characteristics toward Sharia compliance of Islamic banks

Can Shari’ah supervisory board and Islamic bank characteristics reduce tax avoidance? Evidence in Indonesia and Malaysia

Board Gender Diversity and Risk-Taking Behavior of Islamic Bank. A Conceptual Framework

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