scholarly journals THE PROPOSE GOVERNANCE FRAMEWORK FOR SHARIAH CORPORATION

2019 ◽  
pp. 84-90
Author(s):  
Hartinie Abd Aziz ◽  
Zuhairah Ariff Abd Ghadas
Keyword(s):  
Corporate Governance ◽  
Financial Institution ◽  
Governance Structure ◽  
Public Confidence ◽  
Governance System ◽  
Core Element ◽  
Corporate Governance Structure ◽  
Governance Framework ◽  
Shariah Governance ◽  
A Company

Shariah Corporation has developed rapidly offering various product and services that comply with the shariah principles. Nevertheless, all the so-called shariah corporation was framed under the conventional framework beginning from its incorporation as a company up until its corporate governance, and the decision’s making the process. Such conventional framework does differ from the shariah framework. Hence, it is a need to develop a new framework of governance that can be applied to all shariah corporations. This is mainly because the objective of the conventional and the Islamic Corporate governance is different as conventional corporate governance structure is more focused on the protection of the rights of the stakeholders; while Islamic corporate governance focus on retaining the Islamicity of the whole corporation This paper emphasizes that Shari’ah compliance is the core element of shariah corporation and thus Shari’ah governance is an ideal platform to ensure such adherence and thus boost up the level of public confidence in shariah corporation. It is undeniable that there are few shariah governance codes available nowadays, but, these codes are mainly referred to Islamic financial institution per se. This study looks at the current conventional framework and accordingly, this paper proposes a Shari’ah governance framework to accommodate the shariah corporation. The framework suggests incorporating various fundamental governance principles of organizations. This proposed framework is to strengthen the existing guidelines and reflect a holistic governance system for shariah corporation.

Corporate social responsibility, governance and stakeholders: a bank in the upbeat of the crisis

2016 ◽  
Vol 12 (4) ◽  
pp. 388-412 ◽  
Author(s):  
Frank Jan de Graaf
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Governance Structure ◽  
Governance System ◽  
Content Type ◽  
Social Responsibilities ◽  
The Social ◽  
Corporate Social ◽  
A Company

Purpose Using the global financial crisis as a critical event and based on institutional theory and stakeholder theory, this paper aims to explore the relationship between corporate governance and corporate social responsibility (CSR). The question is how stakeholders can influence corporate responses to societal change by using their position in the governance structure. Design/methodology/approach The analysis is based on a historical analysis of data collected mainly between 2002 and 2004. The historical perspective enables an understanding of the response of the company to environmental changes. Findings The approach enables researchers to relate the normative component of CSR to specific governance mechanisms. These governance mechanisms are specified in direct and indirect influence pathways. Historical data shed light on how, in the upbeat of the crisis, stakeholders have influenced the principles and policies of the ING Group, a Dutch financial company. Research limitations/implications The paper suggests that stakeholders influence principles – normative assumptions that guide corporate decisions – mainly in dialogue-based meetings (direct influence pathways). Companies are made accountable in indirect influence pathways such as regulations. The author also demonstrates that a historical approach enables an understanding of long-term historical developments and the linking of corporate policies to the normative assumptions of stakeholders. Practical implications If stakeholders wish to assess the social responsibility of a company, then they should assess the governance structure in relation to the principles and policies. The power structure within a company and that within the institutional framework in which the company operates (the governance system) strongly influences how a company executes its social responsibilities. Social implications The paper demonstrates how stakeholders can use the governance structure to influence a bank. If society – or a specific group in society – wants banks to play a different role, this paper points to what could be the levers of change in the governance system and the governance structure. Originality/value Insights into the complex relationship between corporate governance and the processes in which the social responsibilities of a company are developed.

scholarly journals The Role of Corporate Governance Mechanism in Optimizing Firm Performance: A Conceptual Model for Corporate Sector of Pakistan

2015 ◽  
Vol 5 (6) ◽  
pp. 109-115
Author(s):  
Ahsan Akbar
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Governance Structure ◽  
Governance Mechanism ◽  
Governance System ◽  
Corporate Governance Structure ◽  
Wealth Maximization ◽  
Corporate Governance System ◽  
Corporate Governance Mechanism

Corporate governance refers to the processes that govern and direct firm managers to take decisions that are in line with the shareholders goal of wealth maximization. Various studies have been conducted in developing countries including Pakistan to investigate the relationship between corporate governance and firm performance mostly by using the conventional measures of corporate governance. The result of these studies suggests that corporate governance positively and significantly contributes towards firm performance. The aim of this study is to incorporate some important policy measures related to major players of corporate governance that are of significant importance in establishing an effective corporate governance structure in addition to the conventional measures of corporate governance. Inclusion of these variables will help the firms to create an effective corporate governance system that will lead to an increased firm performance.

scholarly journals Governance Evaluation of Listed Mining Companies Based on Entropy Method

2021 ◽  
Vol 251 ◽  
pp. 01117
Author(s):  
Shi Yufang ◽  
Huang Wanli
Keyword(s):  
Corporate Governance ◽  
Mining Industry ◽  
Governance Structure ◽  
Entropy Method ◽  
Corporate Governance Structure ◽  
The Sustainable Development ◽  
Mining Companies ◽  
Control Functions ◽  
And Control ◽  
A Company

Corporate governance is the basis for correct decision-making and effective management of a company. The sustainable development of a company will depend to a large extent on an effective and reasonable corporate governance structure. The mining industry occupies a fundamental position in China’s national economy and plays a very important role. In view of the particularity and importance of the mining industry, this article is based on the research theory of corporate governance, combined with the characteristics of mining companies, and uses the entropy method to conduct targeted and objective corporate governance evaluations. The research concluded that: (1) When the company is in a state of concentrated equity, the incentive and supervision measures adopted for the managers play an obvious role. (2) The larger the independent board of directors, the higher the effectiveness of corporate governance. (3) The larger the board of supervisors, the more meetings, and the more effective corporate governance, the more it can give full play to its supervision and control functions.

scholarly journals Nurturing Corporate Governance System: The Emerging Trends in Nigeria

2009 ◽  
Vol 4 (2) ◽  
Author(s):  
Benjamin James Inyang
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Governance Structure ◽  
Securities And Exchange Commission ◽  
Control Mechanisms ◽  
Governance System ◽  
Corporate Governance Structure ◽  
Public Corporations ◽  
Emerging Trends ◽  
Corporate Governance System

The paper traced the nascent history of corporate governance system in Nigeria and noted the paucity of literature in the subject. Mainstream issues of corporate governance in the country emerged with the enactment of the Companies and Allied Matters Act of 1990 (CAMA 1990), which established the Corporate Affairs Commission (CAC), and charged it with the responsibility of overseeing the regulation and supervision of the formation, incorporation, registration, management and winding up of companies. The corporate governance codes of both the Securities and Exchange Commission (SEC) and the Central Bank of Nigeria (CBN), gave impetus for the development of corporate governance structure, to ensure transparency, accountability, probity, integrity and fairness in the management and control of the public corporations, and thereby creating value for the shareholders and stakeholders. Major challenges which required urgent attention to enhance the effectiveness of the system were noted thus: making the voluntary codes mandatory; developing more effective mechanisms for monitoring compliance and enforcement; developing strong internal control mechanisms to checkmate the boards oversight responsibility; crafting strategies to enhance shareholders activism and the extension of the codes to state-owned enterprises with more cases of corporate governance abuses.

scholarly journals Corporate governance in financial institutions on transition economies

2013 ◽  
Vol 11 (1) ◽  
pp. 223-232
Author(s):  
Fran Brahimi ◽  
Rezart Dibra ◽  
Geraldina Prodani ◽  
Kesjana Halili ◽  
Ines Dika
Keyword(s):  
Corporate Governance ◽  
Transition Economies ◽  
Financial Institutions ◽  
Financial Institution ◽  
Governance Structure ◽  
Corporate Governance Structure ◽  
Checks And Balances ◽  
Governance Practices ◽  
The Board Of Directors ◽  
The Impact

The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance." Corporate governance in financial institutions is the set of standards and principals used to create a system of checks and balances over the management of banks and financial intermediaries. It establishes the way financial institutions are directed and controlled, ordinarily through standards set for the conduct of the board of directors and senior management. Countries have different political and regulatory environments, business standards and customs. Additionally, independent legal systems varying from country to country cause significant differences in corporate governance practices. There is, however, an international movement toward universal standards for all multinational financial institutions that has been gaining traction since the late 1990s. The topic of corporate governance of financial institutions and its role in stabilizing the industry has reached new levels of importance since the mid 1990s as a result of the globalization of financial markets, deregulation and technological change. The Corporate Governance in banks is one of the most important discussions overall the world, being reinforced especially after the crises period. This paper (discusion in conference) aims to evaluate the impact of corporate governance on financial performance, in the same time we are analyses corporate governance with focus in financial institution buth with importance of corporate governance in all aspects as a part of transition economies that has implement this CG.

scholarly journals Apakah Corporate Governance ikut Mempengaruhi Tingkat Underpricing Perusahaan?

2021 ◽  
Vol 11 (2) ◽  
pp. 136
Author(s):  
ANDI AMRI ◽  
RAMADHI RAMADHI
Keyword(s):  
Corporate Governance ◽  
Initial Public Offering ◽  
Institutional Ownership ◽  
Governance Structure ◽  
Ownership Concentration ◽  
Positive Signal ◽  
Corporate Governance Structure ◽  
Good Corporate Governance ◽  
Public Offering ◽  
A Company

Companies that have the potential will continue to improve by making innovations, being creative and innovating. So that it is expected to obtain qualified funding. This qualified funding will certainly be referred to by looking at the corporate governance structure and the level of underpricing for companies conducting Initial Public Offering (IPO). In achieving the company's goals, many theories put forward by experts. One of them is signaling theory. This theory explains that the existence of a good corporate governance structure, when a company conducts an IPO. This is a positive signal for investors to get involved in a company. Important points in corporate governance include the number of commissioners, dependent commissioners, ownership concentration and institutional ownership. The method used is comparative causal research using multiple regression analysis. Sample 62 observations in companies that have IPO from 2011 to 2016. The results show the number of members of the board of commissioners, the level of independence of the board of commissioners has a significant effect on underpricing. however, the concentration of ownership and institutional ownership has no significant effect on underpricing.

CORPORATE GOVERNANCE IN THE 19TH CENTURY: EVIDENCE FROM THE CHESAPEAKE AND OHIO CANAL COMPANY

2009 ◽  
Vol 36 (2) ◽  
pp. 113-137 ◽  
Author(s):  
Robert W. Russ ◽  
Gary John Previts ◽  
Edward N. Coffman
Keyword(s):  
Corporate Governance ◽  
19Th Century ◽  
Annual Report ◽  
Governance Structure ◽  
Review Committee ◽  
Corporate Governance Structure ◽  
Theoretical Structure ◽  
The 19Th Century ◽  
The U.S

Presenting evidence from a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), the paper shows that issues of corporate governance have existed since the first corporations were established in the U.S. The C&O used a stockholder review committee to review the annual report of the president and directors. The paper shows how the C&O stockholders used this committee to supplement the corporate governance structure. The corporate governance structure of the C&O is also viewed from a theoretical structure as espoused by Hart [1995].

THE STOCKHOLDER REVIEW COMMITTEE OF THE CHESAPEAKE AND OHIO CANAL COMPANY, 1828–1857: EVIDENCE OF CHANGES IN FINANCIAL REPORTING AND CORPORATE GOVERNANCE

2006 ◽  
Vol 33 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Robert W. Russ ◽  
Gary J. Previts ◽  
Edward N. Coffman
Keyword(s):  
Corporate Governance ◽  
19Th Century ◽  
Financial Reporting ◽  
Financial Management ◽  
Governance Structure ◽  
The Political ◽  
Review Committee ◽  
Corporate Governance Structure ◽  
Corporate Form ◽  
The 19Th Century

Canal companies were among the first enterprises to be organized in the corporate form and to require large amounts of capital. This paper examines the stockholder review committee of a 19th century corporation, the Chesapeake and Ohio Canal Company (C&O), and discusses how the C&O used this corporate governance structure to monitor and improve financial management and operations. A major strength was the concern and dedication of the stockholders to the company, while a major weakness was the political control exerted by the State of Maryland. The paper provides an historical perspective on corporate governance in the 19th century. This research contributes to the literature by providing detailed workings and practices of a stockholder review committee. The paper documents corporate governance efforts in archival sources that provide an early example of accountability required in a corporate charter and the manner in which the stockholders carried out this responsibility.

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