Corporate and Shariah Governance Mechanisms and Earnings Quality in Islamic Banks: A Review and Evaluation of Patterns

Muhamad, Siti Fariha; Sulong, Zunaidah

doi:10.1007/978-981-13-7584-2_2

Cited by 5 publications

(4 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The test result was significant for the direct impact of SG on performance since it had a value of t count of 11.96 or a value of 0.323. Muhamad & Sulong(2019)goal is to analyze and assesses previous material on the rules that govern the Shariah government. According to factors such as the status of the economy, the regulations and laws of Shariah, and the Board of Directors (BOD), the study discovered that numerous Shariah Governance Regulatory Frameworks have been established in Islamic banking-operating nations.…”

Section: Literature Reviewmentioning

confidence: 99%

Exploring the Influence of Corporate and Shariah Governance on the Profitability of Banks and their Islamic Windows: A Comprehensive Study of Pakistan

Imran,

Khan

2023

BBE

View full text Add to dashboard Cite

The main purpose of our study is to take a look at how it impacts corporate governance and shariah governance on the profitability of conventional banks of Pakistan and their Islamic windows, one more objective of this study is to investigate whether there is any significant difference in the profitability of conventional banks after opening of Islamic windows. Our research study's theoretical basis draws from corporate governance theories, agency theory, resource dependence theory, and Islamic finance principles. By examining the relationships between these independent variables and the dependent variables (ROA and ROE) our study aims to provide insights into the factors influencing the financial performance of Shariah-compliant banks. Our study is based on 10 conventional banks which also provide Islamic windows. For our analysis in the current study, we will use annual data that covers the period from 2013 to 2022. To achieve these objectives we are using a linear regression model and paired sample t-test. Our findings conclude that bank age and board size have a significant positive impact on corporate governance in contrast, board diversity has a significant but negative impact on the ROA of conventional banks on the other hand bank size and board independence do not have any impact on ROA and if we talk about ROE board size and board independence had a helpful important impact on ROE while bank size bank age and board diversity doesn't have any significant impact on ROE of conventional banks of Pakistan. In the case of Shariah governance, only the Shariah board has a significant positive effect on ROA and ROE ratio on the other hand remuneration and charities don’t have any effect on the Islamic windows of conventional banks. We further discover no substantial variation in the ROA & ROE of Pakistani conventional banks following the establishment of Islamic windows. The findings of this study suggest that the government of Pakistan should focus on promoting good corporate governance practices in banks, especially regarding board size, bank age, board diversity, and shariah board because these factors increase the profitability of conventional banks.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Exploring the Influence of Corporate and Shariah Governance on the Profitability of Banks and their Islamic Windows: A Comprehensive Study of Pakistan

Imran,

Khan

2023

BBE

View full text Add to dashboard Cite

show abstract

“…The islamic finance intermediation, based on sharia guidance/governance, which is peculiar aspect of islamic finance system as respectively highlighted by , Siti and Sulong 2019, Shehzad 2020. According to (Grassa, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Prospects of Sharia Governance in Islamic Finance Industry: Jurisdictions, Standards, and Implications

Wani

Dar

2022

Talaa J. Islam. Financ.

View full text Add to dashboard Cite

The paper aims to explore the establishment, organizational setup, and relevance of the international regulatory/standard setting institutions as Sharī‘ah governance platforms primarily AAOIFI (Accounting and Auditing Organization for Islamic Finance Institutions) and IFSB (Islamic Financial Services Board). The role of IIFA (International Islamic Fiqh Academy Jeddah) IFC (Islamic Fiqh Council of Muslim World League MWL) and ISRA (International Sharī‘ah Research Academy for Islamic Finance) and supportive Shari ‘ah compliance platforms for Islamic Finance Industry (IFI) in the corporate and academic dimensions. The study is qualitative analysis of related Guiding Principles, which enshrine the Sharī‘ah governance framework (SGF) in IFI. The discussion highlights that the (SGF) is the particular aspect in the Islamic Finance Industry (IFI), which embodies the legitimacy of instruments, and generates the trust of stakeholders and shareholders in Islamic finance. The paper shows that analysis will support the understanding of Sharī‘ah governance and jurisdiction of the Islamic finance industry in the contemporary Banking and finance sector. The outcome of the predicted hypothesis will enable to suggest and modify the ongoing banking practices in Islamic corporate with strict adherence to the sharīa standards.

show abstract

“…The issue of Sharīʿah governance has been the subject of many studies in recent years, most of them taking a normative view on the issue (Farook and Farooq, 2011;Febianto, 2011;Casper, 2012). In the study by Muhammad and Sulong (2019) on literature related to the Sharīʿah and corporate governance mechanism, the authors found that different approaches were adopted by different countries, depending on the country's needs, economic situation and regulation. Apparently, most of the literature has examined the roles and responsibilities of BOD and SC including their size, independence, expertise and cross-membership.…”

Section: Related Literaturementioning

confidence: 99%

A comprehensive appraisal of Sharīʿah governance practices in Malaysian Islamic banks

Naysary

Salleh

Abdullah

2020

IJIF

View full text Add to dashboard Cite

Purpose This study aims to empirically investigate the impact of the Sharīʿah Governance Framework (SGF) on improving Sharīʿah governance practices in Islamic banks in Malaysia and in addressing its related issues. Design/methodology/approach Data collection was carried out using a comprehensive questionnaire survey, which was developed primarily based on SGF-2010 and arguments in the literature. The sample for this study includes key functionaries in Sharīʿah governance including senior managers, Sharīʿah committee (SC) and Sharīʿah team members of Islamic banks in Malaysia. Findings The analysis of scores obtained from the questionnaire survey–including 41 items representing current significant issues in Sharīʿah governance–indicates that SGF-2010 has been successful in achieving its objectives and in addressing related issues. The results of the paired sample t-test show significant improvements in Sharīʿah governance practices in Malaysian Islamic banks in light of the aforementioned guideline by Bank Negara Malaysia. Research limitations/implications Findings of this research suggest that among the five essential pillars of Sharīʿah governance, namely, accountability and responsibility, independence, competence, confidentiality and transparency, most of the improvements and changes brought about by SGF-2010 are attributable to accountability and responsibility. However, there is still room for improvement in other components of the SGF, particularly with regard to transparency and the independence of the SC and Sharīʿah team. Originality/value Given the importance of Sharīʿah governance and considering recent endeavours to improve Sharīʿah-compliant culture among Islamic banks in Malaysia, this research is among the first attempts to empirically and comprehensively delve into this subject and evaluate its main issues by directly contacting key players in the Islamic banking industry and providing first-hand highlights. This research also compares the findings based on SGF-2010 with the requirements of SGF-2017 and Sharīʿah Governance Policy Document (SGPD-2019), which were released after this research was completed, where applicable.

show abstract

Corporate and Shariah Governance Mechanisms and Earnings Quality in Islamic Banks: A Review and Evaluation of Patterns

Cited by 5 publications

References 24 publications

Exploring the Influence of Corporate and Shariah Governance on the Profitability of Banks and their Islamic Windows: A Comprehensive Study of Pakistan

Exploring the Influence of Corporate and Shariah Governance on the Profitability of Banks and their Islamic Windows: A Comprehensive Study of Pakistan

Prospects of Sharia Governance in Islamic Finance Industry: Jurisdictions, Standards, and Implications

A comprehensive appraisal of Sharīʿah governance practices in Malaysian Islamic banks

Contact Info

Product

Resources

About