Global Financial Crisis: An Islamic Management Approach

Abstract

The purpose of this study is to determine the solutions to financial crises based on the perspective of Islamic management. It also discusses the roles of faith and Islamic monotheism in managing the global financial crisis. The qualitative method was used to obtain data from books and articles related to Islamic management based on Qur’an and Hadith. These data were further analyzed and used as a solution to problems related to the global financial crisis by Islamic values. The result showed that the values of faith and monotheism following organizational policy and management tend to minimize financial speculative actions and greed. In addition, these values assist managers in planning, organizing, directing, and supervising their subordinates under Islamic rules and regulations. The application of this value is mainly reflected in the aspects of behavior, organizational aspects, and system aspects through the mechanism of placing the sharia supervisory board and profit-sharing in Islamic financial institutions, simplicity, and avoiding is in organizational management as well as the principle of prudence and avoiding speculative action. This research supports the role of the Islamic management system in winning finances and implementing organizational policies to overcome global financial problems.
 JELClassification Codes: G01, H12, D46.

Impact of the ownership structure on the financial performance of banks listed on the Egyptian Stock Exchange

“…1.explained the result of the first sub-hypothesis; There is a positive effect of the concentration of ownership on the economic value added (EVA) in banks listed on the Egyptian Stock Exchange, and this result is consistent with the study (Ozili and Uadiale, 2017;Santoso and Santasyacitta, 2020;Hu and Ezumida, 2008). They see that concentration of ownership is an effective leverage for the firm because greater ownership can reduce the agency problem.…”

“…From the above and the presentation of previous studies it became clear to the researcher that some studies agree that there is a positive relationship to focus ownership on financial performance (Ozili and Uadiale, 2017;Santoso and Santasyacitta, 2020;Classens and Yurtogiu). Justifying this relationship that the concentration of ownership is an effective lever for companies, because larger ownership can reduce the agency's problem between owners and managers, the concentration of ownership reduces the costs of management control and thus performs better performance, as well as the concentration of ownership leads to greater effectiveness and enhances control and governance.…”

“…the study ( Santoso and Santasyacitta, 2020) By knowing the impact of the ownership structure on the financial performance of banks in Indonesia as measured by return on assets and return on property equity, found a range of results, including a positive impact of ownership concentration on financial performance, a positive impact on institutional and family ownership on financial performance, a negative impact of government ownership on financial performance, no effect of foreign ownership on financial performance.…”

“…Justifying the relationship, foreign investors are putting great pressure on the administration to direct their behavior towards serving the interests of these investors, thus leading to the emergence of the agency's problem among them and increasing the agency's costs.Other studies have also agreed that there is no relationship between foreign ownership and financial performance (Santoso and Santasyacitta, 2020; Investors may be unable to make strategic decisions that will influence the performance of companies.…”