Intellectual Capital Approach for a Better Corporate Governance of Sharia Banking

Purnomo, Hadi

doi:10.21043/iqtishadia.v11i1.3204

Cited by 3 publications

(1 citation statement)

References 14 publications

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“…Purnomo finds out that 43.60% of the 117 respondents said that the OJK has no model for the GCG framework for Islamic banking as a reference for implementing GCG. Moreover, 93.20% of the respondents expected stakeholders to set the model framework for Islamic banking GCG (Purnomo, 2018).…”

Section: Introductionmentioning

confidence: 99%

Meta Synthesis of GCG, SSB, and CSR on Islamic Banking Performance

2021

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<p>This research applies a meta-synthesis of research articles on financial and maqasid sharia performance from three dimensions: Good Corporate Governance (GCG), Sharia Supervisory Board (SSB), and Corporate Social Responsibility (CSR). The meta-synthesis was carried out on 50 articles from Scopus-indexed international (Q4-Q1) and Sinta-accredited national (S5-S1) journals published between 2000 and 2020. The meta-synthesis is used as a qualitative systematic review method, which has not been used in similar studies. The results show an inconsistent influence of exogenous variables (GCG, SSB, and CSR) on endogenous variables (financial performance and maqasid sharia performance). The inconsistency is likely due to differences in various and incomprehensive uses of variables and measurement indicators. The optimal implementation of GCG, SSB, and CSR can affect financial performance.</p>

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Section: Introductionmentioning

confidence: 99%

Meta Synthesis of GCG, SSB, and CSR on Islamic Banking Performance

2021

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The influence of corporate governance on intellectual capital efficiency: evidence from Islamic banks of OIC countries

Aslam

Haron

2020

AJAR

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PurposeThe purpose of this study is to examine the impact of corporate governance (CG) on intellectual capital efficiency (ICE) in Islamic banks (IBs) of Organisation of Islamic Cooperation (OIC) countries.Design/methodology/approachA sample of 129 IBs is drawn from the 29 OIC countries from 2008 to 2017. A two-step system of the generalised method of moments has been employed to account for the unobserved endogeneity and heteroscedasticity issue that arose due to time-variant and time-invariant variables.FindingsThe results revealed that CG measures, namely board size, non-executive directors do explain the extent and quality of ICE in the expected direction. In contrast, CEO duality, Shariah board and audit committee are negatively associated with the ICE. Moreover, the authors observed that male CEO in IBs has negative, but foreign ownership has a positive association with ICE in determining the extent of ICE in IBs. This study contributes specifically to the stakeholder theory and the literature of ICE and CG.Research limitations/implicationsThe findings of the study provide insight into how a larger board can overcome skill deficiency and how making more investment in ICE would help to enhance productivity. Hence, bank managers, regulators, policymakers and shareholders have strong interest in designing the appropriate CG structure to develop ICE in banks.Originality/valueThis is one of the few studies which provide empirical evidence of CG mechanism to boost the ICE in the perspective of IBs of the OIC countries.

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Corporate governance and banking performance: the mediating role of intellectual capital among OIC countries

Aslam

Haron²

2020

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Purpose The existing literature asserted that the Islamic banking industry progress significantly, but it has increasingly found asset deficient which assaulted the performance of Islamic banks (IBs). The aim of this study to examine the mediating role of intellectual capital (IC) on the relationship between corporate governance (CG) mechanisms and IBs performance is examined (ATO, NPM). Design/methodology/approach A panel sample of 129 IBs is drawn from the 29 organisation of Islamic cooperation (OIC) countries from 2008 to 2017. Two-step system generalized method of moments (2SYS-GMM) was used to account for the unobserved endogeneity and heteroscedasticity problem. Findings The empirical findings demonstrate that there is a significant impact of the CG mechanism on IC. Moreover, the empirical findings indicate that CG has a direct influence on banking performance but it affects indirectly through IC. IC also appears to have a mediation role in the relationship between the CG mechanism and the performance of IBs. Research limitations/implications As the empirical research on IC from CG point of view in Islamic banking is generally new in the banking literature, the output of this research will contribute to the building up of empirical framework and practices regarding IC in the Islamic banking industry by using the resource-based theory as a leading theory and agency theory as a sub theory. It is anticipated that this study provided a superior comprehensive discussion of the IC in IBs across OIC countries which discovers the CG mechanism to influence the IC to improve banking performance. Practical implications This study offers useful insights to the regulators and practitioners to draw the rules and regulations in improving the CG mechanism and the effectiveness of internal controls by acknowledging the importance of IC in Islamic banking institutions. Particularly, the findings of this study may be of benefit to bankers to efficiently use the IC as a premise to design new and creative strategies to achieve a competitive advantage in the banking industry. Originality/value The study is unique in its nature because it presents a successful model for IBs to concentrate more on the role of IC in enhancing banking performance, which might be used by the banks to rearrange the roles within CG, to place their priorities regarding the internal governance system and financial plans for competency enhancement.

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Intellectual Capital Approach for a Better Corporate Governance of Sharia Banking

Cited by 3 publications

References 14 publications

Meta Synthesis of GCG, SSB, and CSR on Islamic Banking Performance

Meta Synthesis of GCG, SSB, and CSR on Islamic Banking Performance

The influence of corporate governance on intellectual capital efficiency: evidence from Islamic banks of OIC countries

Corporate governance and banking performance: the mediating role of intellectual capital among OIC countries

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