scholarly journals Customers’ Perception Of Ethical Issues In Corporate Governance Of Islamic Banks In Bangladesh

2016 ◽  
Vol 1 (No. 1 Oct 2016) ◽  
pp. 81-96
Author(s):  
Muhammad Mamun
Keyword(s):  
Corporate Governance ◽  
Ethical Issues ◽  
Body Position ◽  
Board Members ◽  
Regulatory Body ◽  
Ethical Standards ◽  
Sensitive Information ◽  
Islamic Banks ◽  
Customer Perceptions ◽  
The Board Of Directors

The study analyzes customer perceptions regarding the ethical standards of corporate governance of the Islamic banks in Bangladesh. The customers were found to have positive perceptions regarding the board of directors’ competence, shariah board members’ expertise and top management team’s effectiveness to discharge Shariah laws. The clients very strongly agreed that their bank followed the Islamic principles. The customers responded positively regarding ethical disclosures of information by their banks. The study noted that the (Ed. note: should “the be changed to “each”?) bank had an effective and transparent mechanism to handle complaints, conflict management, and occurrences due to lack of due care. Interestingly the clients were found to rely more on newspapers, rather than each bank’s website or e-mails for price-sensitive information. The customers were found to be positive regarding the regulatory body’ position in regulating Islamic banks. The overall perception of the respondents regarding ethical corporate governance of the banks was found to be positive.

scholarly journals Implementing the board of directors’ mechanism – An empirical study of the listed firms in Libya

2018 ◽  
Vol 14 (1) ◽  
pp. 22-33 ◽  
Author(s):  
Jill Atkins ◽  
Mohamed Zakari ◽  
Ismail Elshahoubi
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Boards Of Directors ◽  
Listed Companies ◽  
Board Members ◽  
Corporate Boards ◽  
Listed Firms ◽  
Stakeholder Groups ◽  
The Board Of Directors ◽  
Executive Managers

This paper aims to investigate the extent to which board of directors’ mechanism is implemented in Libyan listed companies. This includes a consideration of composition, duties and responsibilities of the board directors. This study employed a questionnaire survey to collect required data from four key stakeholder groups: Boards of Directors (BD), Executive Managers (EM), Regulators and External Auditors (RE) and Other Stakeholders (OS). The results of this study provided evidence that Libyan listed companies generally comply with the Libyan Corporate Governance Code (LCGC) requirements regarding the board composition: the findings assert that most boards have between three and eleven members, the majority of whom are non-executives and at least two or one-third of whom (whichever is greater) are independent. Moreover, the results indicate that general assemblies in Libyan listed companies are practically committed to the LCGC’s requirements regarding the appointment of board members and their length of tenure. The findings provide evidence that boards in Libyan listed companies are carrying out their duties and responsibilities in accordance with internal regulations and laws, as well as the stipulations of the LCGC (2007). Furthermore, the stakeholder groups were broadly satisfied that board members are devoting sufficient time and effort to discharge these duties and responsibilities properly. This study helps to enrich our understanding and knowledge of the current practice of corporate boards as a significant mechanism of corporate governance (CG) by being the first to address the board of directors’ mechanism in Libyan listed companies.

Financial soundness of Islamic banks: does the structure of the board of directors matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afef Khalil ◽  
Imen Ben Slimene
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Islamic Banks ◽  
Z Score ◽  
Data Set ◽  
Content Type ◽  
Additional Hypothesis ◽  
The Board Of Directors ◽  
Financial Soundness ◽  
The Impact

Purpose The purpose of this paper is to examine the Board of Directors’ characteristics and their impact on the financial soundness of Islamic banks. Design/methodology/approach Regression analysis is applied to test the impact of the Board of Directors’ characteristics on the financial soundness of Islamic banks, using a panel data set of 67 Islamic banks covering 20 countries from 2005 to 2018. The Z-score indicator is used to evaluate the Islamic banks’ soundness. To check the robustness of the results, this paper uses other dependent variables (CAMEL) than the Z-score. Findings The main results show that the presence of an independent non-executive director negatively impacts the financial soundness of Islamic banks, while the chief executive officer duality practice has a positive effect on it. Other characteristics of the Board of Directors do not significantly impact the financial soundness of Islamic banks (foreign director, institutional director, chairman with a Shari’ah degree, interlocked chairman and the Board of Directors’ size). Practical implications This study aims to fill the gaps in the literature that discuss the Board of Directors’ role in corporate governance and its impact on the financial soundness of Islamic banks. In other words, it shows the role played by the Board of Directors and improves the knowledge of the corporate governance-financial soundness relationship. Plus, managers, investors and regulators may gain evocative insights, particularly those looking to improve their Islamic banks’ soundness by restructuring their boards’ composition. Originality/value This study sheds new light on the literature on Islamic banking by clarifying the relationship between the Board of Directors and the financial soundness of Islamic banks. Contrary to previous research, this paper uses an additional hypothesis stating that a chairman with a Shari’ah degree (Fiqh Muamalt) has a positive impact on the financial soundness of Islamic banks.

Corporate Governance in Islamic Banks

2021 ◽  
pp. 322-337
Author(s):  
Sami Ben Mim ◽  
Yosra Mbarki
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Supervisory Board ◽  
Islamic Banks ◽  
Governance Mechanism ◽  
Governance Mechanisms ◽  
Transmission Channels ◽  
Corporate Governance Mechanisms ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study investigates the efficiency of the Shariah supervisory board as a corporate governance mechanism in Islamic banks. The authors mainly seek to examine the effect of the Shariah board's composition (size and academic background of its members) on the performance of Islamic banks. They also try to highlight the transmission channels explaining this effect, and compare the efficiency of the Shariah board with that of traditional corporate governance mechanisms, namely the board of directors. The empirical investigation is based on a sample of 72 Islamic banks from 19 countries. Estimation results suggest that the Shariah board positively affects the Islamic banks performance through the number of Islamic Shariah scholars. This effect is mainly due to the size and cost transmission channels. These results are robust to different performance measures. On the other hand, results show that the board of directors' size produces a positive effect on a bank's performance, offering evidence for complementarity between traditional and Islamic governance mechanisms.

scholarly journals The influence of cultural values on the board of directors: Lessons from five corporations

2012 ◽  
Vol 9 (4-2) ◽  
pp. 221-229 ◽  
Author(s):  
Elsa Satkunasingam ◽  
Aaron Yong ◽  
Sern Cherk
Keyword(s):  
Corporate Governance ◽  
Cultural Values ◽  
Board Of Directors ◽  
Senior Management ◽  
Independent Directors ◽  
Board Members ◽  
Differences Of Opinion ◽  
The Board Of Directors ◽  
Code Of Corporate Governance

The Malaysian Code of Corporate Governance 2000 emphasises the monitoring role of the Board of Directors, especially that of independent directors. It has not however taken into account the cultural values in Malaysia which do not encourage differences of opinion or criticisms and has failed to provide sufficient safeguards for directors to exercise their role effectively. As a result, it is relatively easy for dominant Chairmen or CEOs especially in government-linked companies or CEO dominated companies to control the Board or senior management with very little opposition. This paper will discuss several incidences of financial mismanagement in companies caused by dominant directors with very little opposition from the rest of the board. It will highlight that the law has to take cultural values more seriously in order to equip the Board and especially independent directors with the ability to challenge dominant Board members.

scholarly journals Corporate Governance in the Banking Industry of Kosovo

2019 ◽  
Vol 7 (3) ◽  
pp. 20-34 ◽  
Author(s):  
Arber Hoti ◽  
Arben Dermaku
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Financial Performance ◽  
Multiple Regression Analysis ◽  
Board Of Directors ◽  
Multiple Regression ◽  
Commercial Banks ◽  
Banking Sector ◽  
Board Members ◽  
The Board Of Directors

The main purpose of this research is to study the impact of corporate governance on the financial performance of the banking sector in Kosovo. To analyze this impact, the Pearson correlation coefficient, multiple regression analysis related to the board size and board independence and banking sector performance in Kosovo were applied. The key corporate governance variables that have been studied in this research are: (i) size of the board of directors, (ii) the independence of the board of directors (the ratio between non-executive directors and the total number of board members). The data for this research were collected from the annual reports and audited financial statements of commercial banks in Kosovo for the 12 year period (2006-2017) and from questionnaires addressed to board members of commercial banks in Kosovo as well as other publications from relevant local institutions such as the Central Bank of Kosovo (CBK), Statistical Office of Kosovo (SOK), Tax Administration of Kosovo (TAK), etc. The results of the multiple regression analysis regarding the influence of the board of directors on the financial performance of the banking sector indicate that: the size of the board of directors and the independence of the board of directors have a positive and significant impact on the financial performance of the banking sector in Kosovo, expressed through return on assets (ROA) and return on equity (ROE). Findings of this research are in line with the findings of other researchers in this field and confirm the assertion that the management of the above variables improves and has a positive impact on the financial performance of banks in Kosovo.

scholarly journals Roles and responsibilities of board of directors: Paving new path toward corporate governance in Thailand

2006 ◽  
Vol 3 (4) ◽  
pp. 184-191 ◽  
Author(s):  
Boonchai Hongcharu
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Future Development ◽  
Asian Financial Crisis ◽  
Essential Elements ◽  
Board Members ◽  
Monitoring Systems ◽  
Roles And Responsibilities ◽  
The Board Of Directors ◽  
Set Up

Board of directors is one of the most essential elements of a corporation. Board members function as representatives of shareholders to monitor the management’s performance. Therefore, the board of directors is directly concerned with corporate governance development. However, it is generally found that the roles and responsibilities of board of directors are often ignored. The Asian financial crisis that first started in Thailand in 1997 triggered the interest in the structure and roles of the board of directors as an attempt to improve corporate governance. As a result, several measures have been set up to strengthen the functions of the board after incidences of corporate disasters resulting from the failure of monitoring systems of the board. This includes both regulatory and voluntary measures to improve corporate governance through board of directors. Recommendations for future development of board of directors are also discussed

scholarly journals Good Corpotare Governance dan Manajemen Laba di Perbankan Syariah

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Rosyid Nur Anggara Putra
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Supervisory Board ◽  
Islamic Banks ◽  
Management Behavior ◽  
Purposive Sampling ◽  
Good Corporate Governance ◽  
The Board Of Directors

Penelitian ini bertujuan untuk menguji pengaruh mekanisme Good Corporate Governance dengan variabel ukuran dewan komisaris, proporsi komisaris independen, ukuran dewan direksi, ukuran komite audit, ukuran dewan pengawas syariah, dan kompetensi dewan pengawas syariah terhadap manajemen laba pada bank syariah di Indonesia periode 2014-2018. Sampel ditentukan dengan teknik purposive sampling sehingga diperoleh 12 bank syariah sebagai sampel penelitian. Data dianalisis menggunakan regresi data panel dengan fixed effect model dengan software eviews 10. Hasil analisis menunjukkan bahwa ukuran dewan komisaris dan ukuran dewan pengawas syariah berpengaruh positif terhadap perilaku manajemen laba. ukuran komite audit berpengaruh negatif terhadap manajemen laba, sedangkan proporsi komisaris independen, ukuran dewan direksi, dan kompetensi dewan pengawas syariah tidak berpengaruh terhadap perilaku manajemen laba pada bank syariah di Indonesia.This study aims to examine the effect of Good Corporate Governance mechanism with variable size of the board of commissioners, the proportion of independent commissioners, the size of the board of directors, the size of the audit committee, the size of the sharia supervisory board, and the competence of the sharia supervisory board on earnings management in Islamic banks in the 2014-2018 period. The sample is determined by purposive sampling technique so that 12 Islamic banks are obtained as a research sample. Data were analyzed using panel data regression with fixed-effect models with software e-views 10. The results of the analysis showed that the size of the board of commissioners and the size of the sharia supervisory board had a positive effect on earnings management behavior. Audit committee size has a negative effect on earnings management, while the proportion of independent commissioners, the size of the board of directors, and the competence of sharia supervisory boards do not affect earnings management behavior in Islamic banks in Indonesia.

scholarly journals Strategic corporate governance in family business: A study on the board of directors’ roles and responsibilities

2012 ◽  
Vol 9 (2) ◽  
pp. 9-20
Author(s):  
Henrique Cordeiro Martins ◽  
Carlos Alberto Gonçalves ◽  
ose Antonio de Sousa Neto ◽  
Marcio Augusto Gonçalves ◽  
Reynaldo Maia Muniz
Keyword(s):  
Corporate Governance ◽  
Board Of Directors ◽  
Family Business ◽  
Board Members ◽  
Practical Activity ◽  
Roles And Responsibilities ◽  
The Board Of Directors ◽  
Qualitative Nature ◽  
The Impact

The goal of this article is to analyze the constitution of the directors boards, based on their attributes, and the impact of this configuration on the roles and responsibilities of the board members in Brazilian Family Businesses. A research of a qualitative nature was carried out in 10 big family companies in Brazil. The results found point to the strategic roles as being the most relevant, but as a practical activity focused on the role of control. The Board has been more active at some moments, but is inactive at others, especially, when the concentration of capital is greater in some companies than in others.

scholarly journals Shari’ah Scholars’ Insight on Shari’ah Governance Framework for Islamic Banking Institutions in Pakistan

2020 ◽  
Vol 5 (2) ◽  
pp. 29-47
Author(s):  
Syed Muhammad Hassan Bukhari ◽  
◽  
Mohammad Ayaz ◽  
Rukhsana Kalim ◽  
◽  
...  
Keyword(s):  
Corporate Governance ◽  
Research Work ◽  
Islamic Banking ◽  
Research Approach ◽  
Islamic Banks ◽  
Structured Interviews ◽  
Governance Framework ◽  
The Board Of Directors ◽  
Banking Institutions ◽  
Implementation Level

Shari’ah Scholars’ Insight on Shari’ah Governance Framework for Islamic Banking Institutions in Pakistan One of the major reasons behind the financial crises generally and the 2008 crises especially, was the poor corporate governance in financial institutions. For ensuring good Islamic corporate governance as well as Shari’ah compliant environment in Islamic banking institutions (IBIs), Shari’ah governance framework (SGF) was developed in many countries including Pakistan. This study is conducted to evaluate the SGF, its implementation level, and the challenges facing the IBIs in the implementation of the SGF in Pakistan. For this purpose, the insight of the Shari’ah scholars is taken on SGF by following the qualitative research approach with semi-structured interviews of the scholars. The respondents included Shari’ah Board’s (SB) members and Incharges of Shari’ah Compliance Department (SCD) in various IBIs in Pakistan. The researchers used Nvivo12 software for the analysis of the interviews data. The study discovered some important issues faced by Islamic banks in the implementation of SGF. It is evident from the research that there are shortcomings and weaknesses in the implementation of Shari’ah governance framework which requires improvements such as interpretation and quantification of the provisions of the SGF, approval from Shari’ah Board (SB) for all minute requirements, reporting line issues, and communication gap between the board of directors (BODs) and the members of SB. This research work suggests that the State Bank of Pakistan (SBP) should revisit the SGF in the light of the present study and further improve its provisions as well ensure the implementation of SGF in true letter and spirit. Keywords: : Shari’ah governance framework, Shari’ah scholars, Implementation, Islamic banking institutions

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