Developing an Islamic Corporate Governance framework to examine sustainability performance in Islamic Banks and Financial Institutions

Corporate governance and extent of corporate sustainability practice: the role of investor activism

“…The results from the extended regression model for ordered probit analysis (Table 7) is relatively consistent with our expectations except for the variable CEO Duality, which To ascertain the magnitude of coefficient, we interpret that a unit increase in the number of board members, the more likely the firm will be in higher category score (leadership, management or awareness levels) but the less likely they would be in the lower category score of either failed or disclosure levels. The findings here are in line with the agency assumption that a highly diversified board will contribute to better leadership and management oversight role, which may subsequently impact greatly by improving board independence (Jan et al, 2021). we interpret the marginal effect to imply as the number of independent directors increases, the more likely the company will score higher and the less likely they will score lower.…”

“…Corporate board is considered a mechanism that provides the firm access to crucial resources for its survival (Jamil et al, 2020). Jan et al (2021) offer an explanation that when the board is highly diversified, it can spark enhanced leadership and management oversight function, which, in turn, can impacts greatly to improve board independence. Similarly, having a larger number of directors enhances the talent pool of expertise available because larger boards are more likely to have more knowledgeable and skilled professionals at their disposal (Tibiletti et al, 2021).…”

“…It becomes increasingly essential to both developed and developing economies (Girón et al , 2020) due to the growing concern for global environmental challenges and the resulting necessity for ecosystem preservation, piquing the interest of the literature (Hahn and Kühnen, 2013). According to Giannarakis et al (2020) and Jan et al (2021), the concept of sustainability embeds three aspects of economic, environmental and social issues necessary to be fulfilled simultaneously to achieve the ultimate goal. The three aspects have been commonly referred to as the “triple bottom line (TBL)” (Lassala et al , 2017; Beekaroo et al , 2019; Carp et al , 2019), a concept that is fast gaining popularity among stakeholders.…”

“…Being a key player in the society, companies are pressured to integrate sustainable development principles into their daily business practices, to align corporate operations and social values (Baldini et al , 2016; Miras-Rodríguez et al , 2018; Liu et al , 2019). As a result, the concept of sustainability has gained a lot of traction (Jan et al , 2021) because it allows companies to reduce information gaps and promote transparency about their sustainability endeavors, whether positive or one with a negative impact (Girón et al , 2020). Besides, it also serves as a means to enhance reputation and company identity (Lassala et al , 2017).…”

effect of macroeconomics, capital, and asset growth on financial risk, earning and Islamic corporate social responsibility disclosure with corporate governance (GCG) as a moderating variable in Indonesian Islamic banking companies

“…Financial risk itself has the potential for loss to the company. It can be ascertained that all businesses must have business risks, therefore it is necessary to control these risks by going through a risk management process (Ramzan et al, 2021;Jan et al, 2021;Neifar & Jarboui, 2018). In the management dictionary, risk is an uncertainty that contains the possibility of loss in the form of assets, namely the risk of debt or loss of profit or economic capability.…”