Do operational risk and corporate governance affect the banking industry of Pakistan?

Altaf, Komal; Ayub, Huma; Shabbir, Malik Shahzad; Usman, Muhammad

doi:10.1108/reps-12-2019-0156

Cited by 20 publications

(18 citation statements)

References 31 publications

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“…Zaby and Pohl (2019) have developed a holistic approach to measure and manage reputation risk to be implemented in banks in practice. Another pioneering study by Altaf et al (2021), Said et al (2021) and Miklaszewska and Kil (2016) attempts to calculate reputational risk by using SRS, as a proxy for reputational risk which is measured through banks' credit ratings, stock returns and deposit growth. A bank's credit rating expresses credit rating agencies' forward-looking opinion about the creditworthiness of the obligor (bank) capacity and willingness to meet its financial obligations in full and on time (Ratings, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Financial risks and performance of conventional and Islamic banks: do reputational risk matters?

Butt

Ayub

Latif

et al. 2022

JIABR

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Purpose The purpose of this paper is to shed light on the reputational risk, which is elusive and difficult to measure due to the lack of its conclusive definition. Literature supports the notion that financial risks may translate into reputational risks that pose threat to bank performance. However, empirical investigations in this context are still at their nascent stage. Design/methodology/approach This study has used a panel dataset for the sample of 24 conventional and Islamic banks regarding the period 2007–2017 by using a structural equation model. Findings The results of this study show that reputational risk partially mediates the relationship between financial risks and the performance of conventional banks. However, for Islamic banks, the reputational risk remains insignificant as a mediator. This study provides significant implications to risk managers in banks, regulators and academics to understand the role of reputational risk linked to financial risks for the improvement of bank performance. Originality/value This study aims to add to the literature by measuring reputational risk through the shareholders reputational score index, which is used as a mediator to determine whether financial risks of banks affect the performance of conventional and Islamic banks in Pakistan.

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Section: Literature Reviewmentioning

confidence: 99%

Financial risks and performance of conventional and Islamic banks: do reputational risk matters?

Butt

Ayub

Latif

et al. 2022

JIABR

Self Cite

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“…To avoid losses, banks must manage operational risks, which includes identification, assessment, analysis, monitoring and control of operational risks in the presence of sound corporate governance (CG), which can also contribute to effective operational risk management (ORM) procedures. After conducting research, CG and operational risk identification (ORI), monitoring and control were found to have a major impact on ORM procedures at the Pakistan commercial bank (Altaf, Ayub, Shabbir, & Usman, 2021). Corporate governance and organizational features affect the existence of a risk management committee, and the existence of a risk management committee affects a company's performance.…”

Section: Risk Management and Preventing Fraudulent Financial Reportingmentioning

confidence: 99%

Risk Management and other Factors Preventing Fraudulent Financial Reporting by State-Owned Enterprises in Indonesia

Novatiani

Afiah

Sumantri

2022

5002

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This study aims to provide an overview of the effects of risk management and the implementation of good corporate governance (GCG), and the effectiveness of the internal audit function on the prevention of fraudulent financial reporting and its impact on the quality of financial reporting of state-owned enterprises (SOEs) in Indonesia. Questionnaires are used to determine risk management and other factors that influence each other and their impact on the quality of financial reporting. The questionnaire and survey results of 90 state-owned enterprises (BUMN) and 360 respondents. SEM-PLS was used to analyze the data, and the results show that the implementation of GCG, the effectiveness of the internal audit function and risk management have an effect on financial reporting. This is based on the results of research stating that the effectiveness of the internal audit function is able to prevent financial reporting fraud. The professionalism of the internal auditor, who must carry out audits in a correct and professional manner, demonstrates their credibility. This, and audit training, is often not optimal.

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“…Zakat performs a significant role in economic development and for addressing social problem (Qasim, 2020;Abdullah and Sapiei, 2018). Various empirical studies prove that the Zakat plays a prominent role in a country's economic growth (Altaf et al, 2022;Butt et al, Zakat as an instrument 643 2022; Malik Shahzad Shabbir, 2018b). Muhamat et al (2013) states that the Zakat receipts and the Mustahik empowerment programs in Malaysia can significantly help Mustahik develop their business and ultimately encourage an increase in the quality of life of Mustahik.…”

Section: Introductionmentioning

confidence: 99%

“…The potential of Zakat in Indonesia as a driver of economic activity is huge. Zakat has been proven to reduce poverty in countries with a majority Muslim population, as has been done by Malaysia and Pakistan (Altaf et al , 2022; Malik Shahzad Shabbir, 2020; Malik Shahzad Shabbir and Ahmed, 2020; Malik Shahzad Shabbir and Zeb, 2020). However, it has not been well optimized in Indonesia.…”

Section: Introductionmentioning

confidence: 99%

Zakat as an instrument of poverty reduction in Indonesia

Herianingrum

Supriani

Sukmana

et al. 2023

JIABR

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Purpose This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia. Design/methodology/approach This study used a qualitative method based on library research sourced from books, financial reports and another previous research. Findings The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line. Research limitations/implications This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia. Originality/value Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

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Do operational risk and corporate governance affect the banking industry of Pakistan?

Cited by 20 publications

References 31 publications

Financial risks and performance of conventional and Islamic banks: do reputational risk matters?

Financial risks and performance of conventional and Islamic banks: do reputational risk matters?

Risk Management and other Factors Preventing Fraudulent Financial Reporting by State-Owned Enterprises in Indonesia

Zakat as an instrument of poverty reduction in Indonesia

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