scholarly journals THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE IN ISLAMIC BANKS

2018 ◽  
Vol 19 (2) ◽  
Author(s):  
Syed Amaar Ali Ausat
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Islamic Banks ◽  
The Relationship

scholarly journals An Empirical Study on Corporate Governance and Islamic Bank Performance

2016 ◽  
Vol 5 (4) ◽  
pp. 01-09
Author(s):  
Sarwar Uddin Ahmed ◽  
Wali Ullah ◽  
Samiul Parvez Ahmed ◽  
Ashikur Rahman
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Time Series Data ◽  
Stock Exchange ◽  
Series Data ◽  
Islamic Banks ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms ◽  
And Performance ◽  
The Relationship

Corporate governance refers to the relationship present between the corporation and the stakeholders that determines and controls the strategic direction and performance of the corporation. Good corporate governance should provide adequate incentives for the board and management to pursue objectives that are in the interests of the company and shareholders, thereby encouraging firms to use resources more efficiently. However, the definition of accountability differs between conventional and Islamic Banks. Islam was made accountable not only to stakeholders, but also to Allah, the ultimate owner and authority. These powerful moral ethics help in promoting fair, just and honest business dealing. The aim of this study is to examine the relationship between corporate governance structures and the resultant financial performance of listed Islamic banks of Dhaka Stock Exchange (DSE) in Bangladesh. The panel time series data were collected for the time period of 6 years (2009-2014) from all the listed Islamic banks to run an Ordinary Least Squared (OLS) regression model to examine whether the existing corporate governance mechanisms as well as several other internal and external indicators are significant in influencing the financial performance. Preliminary findings suggest corporate governance mechanisms in Islamic banks are not quite as strong as they should be, hinting at possible market and management inefficiencies.

scholarly journals ANALISIS PENGARUH GOOD CORPORATE GOVERNANCE DAN FINANCIAL LEVERAGE TERHADAP KINERJA KEUANGAN BANK UMUM SYARIAH DENGAN VOLUME PEMBIAYAAN SEBAGAI VARIABEL MODERASI

2017 ◽  
Vol 1 (02) ◽  
Author(s):  
Junaedi Juna
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Ordinary Least Squares ◽  
Islamic Banks ◽  
Financial Leverage ◽  
Independent Variables ◽  
Good Corporate Governance ◽  
Panel Data Regression ◽  
Conventional Banks ◽  
The Relationship

This research is a quantitative study which aims to analyze the effect of the implementation of good corporate governance ( GCG ) and financial leverage on the financial performance of Islamic Banks in Indonesia with a financing volume as a moderating variable. GCGCGPI proxy of the composite value, proxied by the DER financial leverage and financial performance proxied by ROA. The population in this research that the entire Islamic Banks in Indonesia in the span of 2009 to 2012. Determination of the sample by using purposive sampling the object obtained 11 studies analyzed panel data regression models with ordinary least squares (OLS) regression analysis and Moderation.The results of this study indicate that the GCG positive effect on financial performance, financial leverage has no effect on financial performance, financing volume moderate the relationship between corporate governance and financial performance, financing volume does not moderate the relationship between financial leverage and financial performance.Based on the analysis in this study, the following suggestions are presented: (1) For Researchers: to increase the number of observational studies, the researchers can further augment the study period so that the collected data is becoming more and research results will be better, researchers can further add other independent variables are predictable effect on the financial performance of the BUS and increase the number of variables that can be predicted to interfere with the relationship between the independent variables on the dependent variable, further research can be conducted by comparing the corporate governance of Islamic banks with conventional banks; (2) For Islamic banks: Banks can observe about the state of corporate governance in order to continuously improve the quality GCGGCG because it can improve the quality of the bank's financial performance.

scholarly journals Corporate Governance Characteristics and Financial Performance: Evidence from Islamic Banks in Malaysia

2021 ◽  
Vol 20 (1) ◽  
pp. 39-60
Author(s):  
Mohd Danial Afiq Khamar Tazilah ◽  
◽  
Muhammad Majid ◽  
Azeyan Awee ◽  
Adam Arif Lee Aik Keang ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Services ◽  
Annual Reports ◽  
Clear Understanding ◽  
Committee Report ◽  
Islamic Banks ◽  
Return On Equity ◽  
Shariah Governance ◽  
The Relationship

Corporate governance has been proven to be an effective mechanism in managing business operations that have major impact on the financial performance, increase investor confidence level and goodwill. Past studies have focused more towards the relationship between corporate governance and financial performance among various industries including financial services. However, limited studies explored in overseeing the performance of Islamic financial services in relation to the implementation of Shariah governance principles since 2010 which are fully governed by the Central Bank of Malaysia. Hence, this research aimed to investigate the relationship between corporate and Shariah governance characteristics (board size, board independence, CEO duality, size of the Shariah Committee and disclosure of the Sharia Committee Report) and bank performance (return on equity) among Islamic banks in Malaysia. A total of 16 Islamic banks listed in Bursa Malaysia were selected and data from the annual reports were collected and analysed from 2011 to 2018. This research shall provide greater insights to various stakeholders and shareholders as the potential investors. It gives better and clear understanding of the functions of both corporate and Shariah governance in enhancing the performance and operation activities of Islamic banks in Malaysia.

scholarly journals Islamic Corporate Governance dalam Memoderasi Hubungan antara Kinerja Keuangan dan Islamic Social Reporting

2019 ◽  
Vol 5 (2) ◽  
Author(s):  
Maya Mahardikasari
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Empirical Evidence ◽  
Supervisory Board ◽  
Social Reporting ◽  
Company Size ◽  
Islamic Banks ◽  
Control Variables ◽  
Panel Model ◽  
The Relationship

This purpose of this study is to present empirical evidence the effect of islamic corporate governance in moderating the relationship between financial performance and islamic social reporting on islamic banks in Indonesia. As a moderating variabel, the proxie of islamic corporate governance is the score of sharia supervisory board. The population in this study is islamic banks registered in Otoritas Jasa Keuangan (OJK) during the period 2008-2017. The total of population is 13 companies which are the number of samples from the study. This study uses a data panel model that was analyzed using software Eviews 10. Analysis result prove that financial performance affects on islamic social reporting while islamic corporate governance cannot moderate the relationship between financial performance and islamic social reporting. For the control variables, company size has an effect on islamic social reporting but leverage has no effect on islamic social reporting.

IMPLEMENTASI KINERJA KEUANGAN TERHADAP NILAI SPIRITUALITAS PRIBADI

2012 ◽  
Vol 16 (3) ◽  
pp. 332
Author(s):  
Whedy Prasetyo
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Annual Report ◽  
Main Concern ◽  
Good Corporate Governance ◽  
Corporate Social ◽  
The Relationship ◽  
Personal Spirituality

Development of financial performance in the application of Good Corporate Governance and Corporate Social Responsibility which affects the values of honesty private individuals, in order to be able to run the accountability, value for money, fairness in financial management, transparency, control, and free of conflicts of interest (independence). The main concern in this study is focused on achieving value personal spirituality through the financial performance and capabilities of Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) in moderating the relationship with the financial performance of value personal spirituality. This study is a descriptive verifikatif. The unit of analysis in this study was 15 companies in Indonesia with a policy that has been applied through the concept since January of 2008 until now, with the support of the annual report of the company, the company's financial statements, company reports to the disclosure of Good Corporate Governance and Corporate Social Responsibility in the annual report. Overall reports published successively during the years 2008-2011. The results of this study indicate financial performance affects the value of personal spirituality, and for variable GCG obtained results that could moderate the relationship of financial performance to the value of personal spirituality. But for the disclosure of CSR variables obtained results can’t moderate the relationship with the financial performance of personal spirituality.

scholarly journals Performance, corporate governance and new regulation

2017 ◽  
Vol 9 (18) ◽  
Author(s):  
Heriberto García
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Market ◽  
Information Disclosure ◽  
Potential Growth ◽  
Listed Firms ◽  
Risk Return ◽  
Corporate Governance Code ◽  
Governance Practices ◽  
The Relationship

Abstract. After the adoption of the Corporate Governance Code (Code) in Mexico, many companies increased financial performance and the leveraged during the following five years; we investigated the effect of how those firms improved the corporate governance practices and how was translated into better risk return company. We analyzed how and where better corporate governance practices affects performance and what was the relationship with Transparency, New Regulation and Governance Practices. Also we explored the gaps between transparency and information disclosure of Mexican Firms listed in U.S stockexchange and non U.S listed firms our findings were related to the potential growth of the Mexico Financial Market, Law and Finance.Keywords: corporate governance, financial performance, regulationResumen. Después de la adopción del Código de Gobierno Corporativo en México, algunas compañías incrementaron el desempeño financiero y el uso de deuda durante los siguientes cinco anos, nuestra investigación se enfoca en como dichas compañías mejoraron sus prácticas de gobierno corporativo y como estas prácticas se han traducido en un mejor relación de riesgo y rendimiento. En esta investigación exploramos cómo y en dónde mejores prácticas de gobierno corporativo afectan el desempeño y qué relación tiene con laTransparencia, Nuevas Regulaciones y prácticas de Gobierno Corporativo. Con lo anterior también identificamos aquellas compañías que cotizan fuera de México para identificar potenciales diferencias en dichas prácticas.Palabras clave: desempeño financiero, gobierno corporativo, regulación

scholarly journals The Relationship Between Corporate Governance Practices and Financial Performance: Evidence from Amman Stock Exchange

2021 ◽  
pp. 63-87
Author(s):  
Hussein Ahmad Bataineh ◽  
Sulaiman Salim Al Harthy ◽  
Raqiya Ali Al Balushi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Stock Exchange ◽  
Predictor Variable ◽  
P Value ◽  
Amman Stock Exchange ◽  
Governance Practices ◽  
Unit Increase ◽  
Beta Coefficient ◽  
The Relationship

The objective of the study was to establish the relationship between corporate governance Index and financial performance and evidence from Amman stock exchange. To achieve this objective, this study applied descriptive research structure. In this case, the research focused on the 181 firms listed at the Amman Stock Exchange (Appendix I). The statistical techniques that was applied to analyze collected data included descriptive statistics. The information analyzed revealed that the model summary indicated that the R² to be 0.243. This meant that 24.3% of the variation in performance (ROA) was due to the predictor variable captured in the study. This also implied that 75.7% of the variation in ROA was attributed to the measurements of error and other factors that could have had an effect on the ROA but were not captured in the study. The estimated model showed that ROA when other factors are held constant was 1.610. The outcomes also revealed that governance score had a beta coefficient of 0.573 indicating that for every unit increase in governance score on the ROA went up by 0.573. This relationship is significance since P-value of 0.025<0.05. Therefore, the model qualified as a good predictor. Keywords: Corporate Governance, Financial Performance, Amman stock Exchange.

scholarly journals The relationship between corporate governance and financial performance of small corporations in Australia

2014 ◽  
Vol 9 (2) ◽  
Author(s):  
Yongqiang Li ◽  
Anona Armstrong ◽  
Andrew Clarke
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Structural Equation ◽  
Small Firms ◽  
Negative Impact ◽  
Governance Mechanisms ◽  
Latent Constructs ◽  
Equation Modelling ◽  
Corporate Governance Mechanisms ◽  
The Relationship

This paper examines a widely explored but yet to be confirmed relationship between two latent constructs - corporate governance and financial performance of small corporations in Australia. Prior studies have either focused on larger organisations or isolated corporate governance mechanisms in small firms. However, few have examined how corporate governance mechanisms, as a bundle, relate to small corporations. This study fills this gap by empirically analysing the aforementioned relationship using Structural Equation Modelling (SEM). Based on 387 responses from small corporations, the results show that corporate governance bundles measured by the extant literature, has a negative impact on the financial performance of small corporations. The result calls for a stakeholder approach to the governance needs of small corporations.

scholarly journals Financial Performance Mediation in the Influence of Islamic Corporate Governance Disclosure on the Islamic Social Reporting

2019 ◽  
Vol 3 (1) ◽  
pp. 75
Author(s):  
Ichsan Setiyo Budi ◽  
Rahmawati Rahmawati ◽  
Falikhatun Falikhatun ◽  
Muthmainah Muthmainah ◽  
Ardi Gunardi
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Social Role ◽  
Secondary Data ◽  
Social Reporting ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Social ◽  
Annual Reporting ◽  
Report Data

The results of the research on the social role of Islamic banks show inconsistency both domestically and abroad; this is the basis for conducting this research to re-explain the Islamic Corporate Governance (ICG) and Islamic Social Reporting (ISR) relationship, models. This study aims to examine the indirect effect of ICG disclosure on ISR disclosure with financial performance as a mediating variable in Islamic Banking in Indonesia. This study uses secondary data with annual report data sources and financial statements on Islamic banking in Indonesia. They are testing this study using stepwise regression analysis with data for the annual reporting period of 2011 through 2014. The result that financial performance mediates the effect of disclosure of ICG on ISR; this shows that proper management of Islamic banks will produce high financial performance so that they can carry out their social roles well too. The contribution of this study is to develop a new model of the part of financial performance mediating the effect of ICG disclosure on ISR so that it is beneficial for the development of science.

Sign in / Sign up

Export Citation Format

Share Document