An Analysis of Corporate Governance in Islamic and Western Perspectives

Hafeez, Malik Muhammad

doi:10.2139/ssrn.2736740

Cited by 24 publications

(22 citation statements)

References 4 publications

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“…Shariah governance views that companies must be managed based on the Islamic paradigm of the Qur'an and Sunnah. Shariah is not only concerning religious rituals but also includes social, political, economic, business, and legal dimensions (Hafeez 2016). Based on the Islamic perspective, there is no separation between religious and non-religious activities, so Muslims must always obey the things that have been prescribed by God.…”

Section: Sharia Governancementioning

confidence: 99%

Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

Ridwan

Mayapada

2020

Journal of Sustainable Finance & Investment

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Purpose: This study aims to investigate the effect of sharia governance to corporate social responsibility disclosure in Indonesia Islamic banks. Design/methodology/approach: The data in this study are taken from the annual reports of ten Islamic banks in Indonesia in the period 2011-2018. The data analysis method used in this study is multiple linear regression analysis. Findings: This study finds that the effectiveness of the board of directors plays a vital role in enforcing corporate social responsibility disclosure. Whereas, the audit committee and sharia supervisory board are found to have no significant effect on corporate social responsibility disclosure in Islamic banks. Research implications: Results of this study reveal that sharia supervisory board in Indonesia Islamic banks only still focuses on the compliance of Islamic banks with the sharia principles regarding the products and operations. Originality/value: The novelty of this study lies in highlighting the effect of sharia supervisory board as a unique characteristic of sharia governance.

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Section: Sharia Governancementioning

confidence: 99%

Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

Ridwan

Mayapada

2020

Journal of Sustainable Finance & Investment

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“…According to Hafeez (2013), Islamic CG principles settle on three aspects of decisionmaking, i.e., by whom: Through mutual consultation, for whom: to achieve God's grace, and being His trustees to safeguard the interests of His slaves, and with whom, and to whom: through active religious supervision to ensure the Sharī'ah-compliant operations. He argued that the institution of h .…”

Section: Literature Reviewmentioning

confidence: 99%

Strengthening Corporate Governance Regime for Islamic Banks in Pakistan: Focusing on the Principles of Amana and Mas’ulıyah

Ayaz

Mansoori

2017

J. Islam. bus. manag.

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The debate on the topic of Corporate Governance (CG) witnessed a substantial boost in the wake of the unprecedented financial crisis of 2008, and previously, the collapses of big corporations and banks in 1990s.The governance failure has been found as the key factor behind this debacle. The CG in Islamic perspective got attention from the scholars and researchers soon after the Islamic Banking Institutions (IBIs) emerged. Nevertheless, Islamic CG faced some issues such as incompetency of the board of directors, absence of effective risk management policies, moral hazards, and non-compliance of Sharī'ah principles. The goal of compliance with Islamic law has also been added to the CG and the State Bank of Pakistan (SBP), as regulator, issued a Sharī'ah Governance Framework (SGF) in this respect. However, a separate statutory law for the governance of IBIs is non-existent. Hence, the IBIs follow conventional regime, which failed to cater the specific requirements of IBIs. The research adopts qualitative inquiry method for deeper analysis. The governance of the IBIs should be in the hands of such competent CG players, who comply with the principles of amānah (trusteeship) and mas'ūlīyah (accountability) in addition to other capabilities. There are certain provisions in the existing CG regime, compatible with these principles, but the same do not ensure good governance. Further, to the best of our knowledge, no CG player is punished for non-compliance with the provisions of the SGF. We suggest proper punitive actions for the Sharī'ah non-compliances. Various scholars have discussed CG principles, but they did not check any legal regime to verify the degree of compatibility of its provisions with those principles. This study is an effort to fill the gap by assessing the compatibility of the provisions of the existing SGF with the Islamic principles of Amānah and Mas'ūlīyah with respect to IBIs in Pakistan.

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“…Setyawan (2015) The principle of fairness, transparency, and accountability in budget management simultaneously affect the productivity of the school. Hafeez (2016) The use of audit, accounting and documentary records of all transactions of companies that either have credibility and be a source of internal control and risk management of financial disclosure and reporting is a key element of corporate transparency of the modern era. In Islam in general, there are two points between faith and piety, science and technology can not be separated (dichotomy) but must unite (chotomous) in the life of a Muslim in order to achieve a balance of interests and happiness hereafter, as stated in the Qur'an Surah al -Qasas, 77 as follows:…”

Section: Introductionmentioning

confidence: 99%

Islamic Governance in Islamic School Finance

Hamid¹

2018

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Abstract:The purpose of this study is to analyze the concept of Islamic finance governance which includes the principles among others; tauhid, taqwa and ridho, equilibrium (balance and justice), benefit, transparency, responsibility (responsibility) and independence. This research uses descriptive qualitative method using literature approach (literature), either in the form of books, notes, or research result report, from previous researcher. The literature used in this research is books, journals, theses, and articles related to Good Corporate Governance in Islamic perspective and its application to sharia banking in the world.Islam has a much more complete and more comprehensive concept and akhlaqulkarimah and ketaqwaan to Allah SWT is a solid wall not to get mired in illegal practices and dishonest in accepting the mandate. Principles of Islamic Governance (IG) after going through the process of analysis and data processing there are nine interrelated principles, the principles are derived kalamullah and rasulullah who can answer from some corruption crime to efforts in improving efficiency, competitiveness and product innovation and sharia banking services.

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An Analysis of Corporate Governance in Islamic and Western Perspectives

Cited by 24 publications

References 4 publications

Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

Does sharia governance influence corporate social responsibility disclosure in Indonesia Islamic banks?

Strengthening Corporate Governance Regime for Islamic Banks in Pakistan: Focusing on the Principles of Amana and Mas’ulıyah

Islamic Governance in Islamic School Finance

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