1,703
Views
3
CrossRef citations to date
0
Altmetric
LEISURE & TOURISM

Corporate governance and Islamic law compliance risk

ORCID Icon, , &
Article: 2111057 | Received 14 Oct 2021, Accepted 04 Aug 2022, Published online: 12 Aug 2022

References

  • AAOIFI. (1997). AOIFI governance standard 1–Shari’a supervisory board- Appointment, composition and report.
  • Abedifar, P., Molyneux, P., & Tarazi, A. (2013). Risk in Islamic banking. Review of Finance, 17(March), 2035–17. https://doi.org/10.1093/rof/rfs041
  • Abou-el-sood, H. (2019). Corporate governance and risk taking : The role of board gender diversity. Pacific Accounting Review, 31(1), 19–42. https://doi.org/10.1108/PAR-03-2017-0021
  • Ahn, S., Jiraporn, P., & Kim, Y. S. (2010). Multiple directorships and acquirer returns. Journal of Banking and Finance, 34(9), 2011–2026. https://doi.org/10.1016/j.jbankfin.2010.01.009
  • Akhtar, B., Akhter, W., & Shahbaz, M. (2017). Determinants of deposits in conventional and Islamic banking: A case of an emerging economy. International Journal of Emerging Markets, 12(2), 296–309. https://doi.org/10.1108/IJoEM-04-2015-0059
  • Alabbad, A., Hassan, M. K., & Saba, I. (2019). Can Shariah board characteristics influence risk-taking behavior of Islamic banks? International Journal of Islamic and Middle Eastern Finance and Management, 12(4), 469–488. https://doi.org/10.1108/IMEFM-11-2018-0403
  • Alam, N., Abdul, B., & Ting, D. (2019). Does competition make banks riskier in dual banking system ? Borsa Istanbul Review, 19(1), S34–S43. https://doi.org/10.1016/j.bir.2018.09.002
  • Alam, N., Ramachandran, J., & Nahomy, A. H. (2020). The impact of corporate governance and agency effect on earnings management – A test of the dual banking system. Research in International Business and Finance, 54(June 2019), 101242. https://doi.org/10.1016/j.ribaf.2020.101242
  • Alhammadi, S., Alotaibi, K. O., & Hakam, D. F. (2020). Analysing Islamic banking ethical performance from Maqāṣid al-Sharī‘ah perspective: Evidence from Indonesia. Journal of Sustainable Finance and Investment, 1–23. https://doi.org/10.1108/JFRC-01-2017-0014
  • Aljughaiman, A. A., & Salama, A. (2019). Do banks effectively manage their risks? The role of risk governance in the MENA region. Journal of Accounting and Public Policy, 38(5), 106680. https://doi.org/10.1016/j.jaccpubpol.2019.106680
  • Alman, M. (2012). Shari’ah supervisory board composition effects on Islamic banks’ risk-taking behavior. Journal of Banking Regulation, 14, 134–163. https://doi.org/10.2139/ssrn.2140042
  • AlShattarat, W. K., & Atmeh, M. A. (2016). Profit-sharing investment accounts in islamic banks or mutualization, accounting perspective. Journal of Financial Reporting and Accounting, 14(1), 30–48. https://doi.org/10.1108/jfra-07-2014-0056
  • Arif, M. N. R. A. (2014). Office channeling and its impact on the profitability of Islamic bank. Journal of Modern Accounting and Auditing, 10(2), 210–217. https://doi.org/10.21776/ub.jam.2017.015.02.08
  • Aslam, E., & Haron, R. (2021). Corporate governance and risk-taking of Islamic banks: Evidence from OIC countries. Corporate Governance (Bingley), 21(7), 1460–1474. https://doi.org/10.1108/CG-08-2020-0311
  • Aysan, A. F., Disli, M., Duygun, M., & Ozturk, H. (2018). Religiosity versus rationality : Depositor behavior in Islamic and conventional banks. Journal of Comparative Economics, 46(1), 1–19. https://doi.org/10.1016/j.jce.2017.03.001
  • Azad, A. S. M. S., Azmat, S., & Hayat, A. (2020). What determines the profitability of Islamic banks: Lending or fee? International Review of Economics and Finance, (August 2018). https://doi.org/10.1016/j.iref.2019.05.015
  • Barako, D. G. (2007). Determinants of voluntary disclosures in Kenyan companies annual reports. African Journal of Business Management, 1(5), 113–128. https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.111.3766&rep=rep1&type=pdf
  • Basiruddin, R., & Ahmed, H. (2019). Corporate governance and Shariah non-compliant risk in Islamic banks: Evidence from Southeast Asia. Corporate Governance (Bingley), 20(2), 240–262. https://doi.org/10.1108/CG-05-2019-0138
  • Ben Selma Mokni, R., Echchabi, A., Azouzi, D., & Rachdi, H. (2014). Risk management tools practiced in Islamic banks: Evidence in MENA region. Journal of Islamic Accounting and Business Research, 5(1), 77–97. https://doi.org/10.1108/JIABR-10-2012-0070
  • Bonazzi, L., & Islam, S. M. N. (2007). Agency theory and corporate governance A study of the effectiveness of board in their monitoring of the CEO. Journal of Modelling in Management, 2(1), 7–23. https://doi.org/10.1108/17465660710733022
  • Chong, B. S., & Liu, M. H. (2009). Islamic banking: Interest-free or interest-based? Pacific Basin Finance Journal, 17(1), 125–144. https://doi.org/10.1016/j.pacfin.2007.12.003
  • De Vita, G., & Luo, Y. (2018). When do regulations matter for bank risk-taking? An analysis of the interaction between external regulation and board characteristics. Corporate Governance (Bingley), 18(3), 440–461. https://doi.org/10.1108/CG-10-2017-0253
  • Effendi, K. A., & Disman, D. (2017). Liquidity risk: Comparison between Islamic and conventional banking. European Research Studies Journal, 20(2), 308–318. https://doi.org/10.35808/ersj/643
  • El-Halaby, S., & Hussainey, K. (2015). The determinants of social accountability disclosure: evidence from Islamic banks around the world. International Journal of Business, 20(3), 202–223. http://www.craig.csufresno.edu/ijb/Volumes/Volume%2020/V203-2.pdf
  • El-Masry, A. A., Abdelfattah, T., & Elbahar, E. (2016). Corporate governance and risk management in GCC banks. Corporate Ownership and Control, 13(3), 8–16. https://doi.org/10.22495/cocv13i3p1
  • Elamer, A. A., AlHares, A., Ntim, C. G., & Benyazid, I. (2018). The corporate governance – Risk- taking nexus : Evidence from insurance companies. International Journal of Ethics and Systems, 34(4), 493–509. https://doi.org/10.1108/IJOES-07-2018-0103
  • Faisal, F., Majid, M. S. A., & Sakir, A. (2020). Agency conflicts, firm value, and monitoring mechanisms : An empirical evidence from Indonesia. Cogent Economics & Finance, 8(1), 1–24. https://doi.org/10.1080/23322039.2020.1822018
  • Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. The Journal of Law & Economics, 26(2), 301–325. https://doi.org/10.1086/467037
  • Farag, H., Mallin, C., & Ow-yong, K. (2018). Corporate governance in Islamic banks : New insights for dual board structure and agency relationships q. Journal of International Financial Markets, Institutions & Money, 54(May), 59–77. https://doi.org/10.1016/j.intfin.2017.08.002
  • Farber, D. B. (2005). Does after fraud : Corporate governance. The Accounting Review, 80(2), 539–561. https://doi.org/10.2308/accr.2005.80.2.539
  • Farook, S., Hassan, M. K., & Clinch, G. (2014). Islamic bank incentives and discretionary loan loss provisions. Pacific Basin Finance Journal, 28(June), 152–174. https://doi.org/10.1016/j.pacfin.2013.12.006
  • Gafrej, O., & Boujelbéne, M. (2021). The impact of performance, liquidity and credit risks on banking diversification in a context of financial stress. International Journal of Islamic and Middle Eastern Finance and Management, 15(1), 66–82. https://doi.org/10.1108/IMEFM-09-2020-0488
  • Grace, M., Ireland, A., & Dunstan, K. (1995). Board Composition, Non-Executive Directors’ Characteristics and Corporate Financial Performance. Asia-Pacific Journal of Accounting, 2(1), 121–137. https://doi.org/10.1080/10293574.1995.10510481
  • Grassa, R. (2016). Ownership structure, deposits structure, income structure and insolvency risk in GCC Islamic banks. Journal of Islamic Accounting and Business Research, 7(2), 93–111. https://doi.org/10.1108/JIABR-11-2013-0041
  • Hambrick, D. C., & Mason, P. A. (1984). Upper echelons: The organization as a reflection of its top managers. Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/amr.1984.4277628
  • Hamza, H. (2016). Does investment deposit return in Islamic banks reflect PLS principle? Borsa Istanbul Review, 16(1), 32–42. https://doi.org/10.1016/j.bir.2015.12.001
  • Hussain, H. A., & Al-Ajmi, J. (2012). Risk management practices of conventional and Islamic banks in Bahrain. Journal of Risk Finance, 13(3), 215–239. https://doi.org/10.1108/15265941211229244
  • Isa, M., & Lee, S. P. (2020). Does the Shariah committee influence risk-taking and performance of Islamic banks in Malaysia? Journal of Islamic Accounting and Business Research, 11(9), 1759–1817. https://doi.org/10.1108/JIABR-12-2018-0207
  • Ismal, R. (2011). Depositors’ withdrawal behavior in Islamic banking: Case of Indonesia. Humanomics, 27(1), 61–76. https://doi.org/10.1108/08288661111110187
  • Jabari, H. N., & Muhamad, R. (2021). Diversity and risk taking in Islamic banks: Does public listing matter? Borsa Istanbul Review, 22(3). https://doi.org/10.1016/j.bir.2021.07.003
  • Jia, J., Li, Z., & Munro, L. (2019). Risk management committee and risk management disclosure: Evidence from Australia. Pacific Accounting Review, 31(3), 438–461. https://doi.org/10.1108/PAR-11-2018-0097
  • Kabir, M. N., Worthington, A., & Gupta, R. (2015). Comparative credit risk in Islamic and conventional bank. Pacific-Basin Finance Journal, 34(September), 327–353. https://doi.org/10.1016/j.pacfin.2015.06.001
  • Khan, M. H., Fraz, A., Hassan, A., & Abedifar, P. (2020). Female board representation, risk-taking and performance: Evidence from dual banking systems. Finance Research Letters, 37(November), 101541. https://doi.org/10.1016/j.frl.2020.101541
  • Khan, I., & Zahid, S. N. (2020). The impact of Shari’ah and corporate governance on Islamic banks performance: Evidence from Asia. International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 483–501. https://doi.org/10.1108/IMEFM-01-2019-0003
  • Koerniadi, H., Krishnamurti, C., & Tourani-Rad, A. (2014). Corporate governance and risk- taking in New Zealand. Australian Journal of Management, 39(2), 227–245. https://doi.org/10.1177/0312896213478332
  • Kusumadewi, N. L. G. L., & Wardhani, R. (2020). The effect of three types of agency problems on the firm performance: Evidence from Indonesia. International Journal of Monetary Economics and Finance, 13(3), 279. https://doi.org/10.1504/ijmef.2020.108824
  • Lassoued, M. (2018). Corporate governance and financial stability in Islamic banking. Managerial Finance, 44(5), 524–539. https://doi.org/10.1108/MF-12-2016-0370
  • Lee, S. P., Isa, M., Ahmad, R., & Bacha, O. I. (2020). Governance and risk-taking in conventional and Islamic banks. Managerial Finance, 47(5), 703–722. https://doi.org/10.1108/MF-04-2020-0146
  • Louati, S., & Boujelbene, Y. (2015). Banks’ stability-efficiency within dual banking system: A stochastic frontier analysis. International Journal of Islamic and Middle Eastern Finance and Management, 8(4), 472–490. https://doi.org/10.1108/IMEFM-12-2014-0121
  • Louhichi, A., Louati, S., & Boujelbene, Y. (2019). Market-power, stability and risk-taking: An analysis surrounding the riba-free banking. Review of Accounting and Finance, 18(1), 2–24. https://doi.org/10.1108/RAF-07-2016-0114
  • Mahdi, I. B. S., & Abbes, M. B. (2018). Relationship between capital, risk and liquidity: A comparative study between Islamic and conventional banks in MENA region. Research in International Business and Finance, 45(July 2017), 588–596. https://doi.org/10.1016/j.ribaf.2017.07.113
  • Martín, C. J. G., & Herrero, B. (2018). Boards of directors: Composition and effects on the performance of the firm. Economic Research-Ekonomska Istrazivanja, 31(1), 1015–1041. http://doi.org/10.1080/1331677X.2018.1436454
  • Mateev, M., & Bachvarov, P. (2021). Regulation, ownership and bank performance in the MENA region: Evidence for Islamic and conventional banks. Emerging Markets Review, 47(November 2020), 100789. https://doi.org/10.1016/j.ememar.2020.100789
  • Mollah, S., Hassan, M. K., Al Farooque, O., & Mobarek, A. (2017). The governance, risk-taking, and performance of Islamic banks. Journal of Financial Services Research, 51(2), 195–219. https://doi.org/10.1007/s10693-016-0245-2
  • Mollah, S., & Zaman, M. (2015). Shari’ah supervision, corporate governance and performance : Conventional vs . Islamic banks. Journal of Banking & Finance, 58(September), 418–435. https://doi.org/10.1016/j.jbankfin.2015.04.030
  • Musallam, S. R. M. (2020). Effects of board characteristics, audit committee and risk management on corporate performance: Evidence from Palestinian listed companies. International Journal of Islamic and Middle Eastern Finance and Management, 13(4), 691–706. https://doi.org/10.1108/IMEFM-12-2017-0347
  • Najwa, N. A., Ramly, Z., & Haron, R. (2019). Board size, chief risk officer and risk-taking in Islamic banks: Role of Shariah supervisory board. Jurnal Pengurusan, 57. https://doi.org/10.17576/pengurusan-2019-57-01
  • Nguyen, Q. K. (2021). Oversight of bank risk-taking by audit committees and Sharia committees: Conventional vs Islamic banks. Heliyon, 7(December 2020), e07798. https://doi.org/10.1016/j.heliyon.2021.e07798
  • Nomran, N. M., Haron, R., & Hassan, R. (2018). Shari’ah supervisory board characteristics effects on Islamic banks’ performance: Evidence from Malaysia. International Journal of Bank Marketing, 36(2), 290–304. https://doi.org/10.1108/IJBM-12-2016-0197
  • Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74–95. https://doi.org/10.1177/0974686217701467
  • Safiullah, M. (2021). Stability efficiency in Islamic banks: Does board governance matter? Journal of Behavioral and Experimental Finance, 29(March), 100442. https://doi.org/10.1016/j.jbef.2020.100442
  • Safiullah, M., & Shamsuddin, A. (2018). Risk in Islamic banking and corporate governance. Pacific-Basin Finance Journal, 55(April), 105–140. https://doi.org/10.1016/j.pacfin.2017.12.008
  • Saif-Alyousfi, A. Y. H., & Saha, A. (2021). Determinants of banks’ risk-taking behavior, stability and profitability: Evidence from GCC countries. International Journal of Islamic and Middle Eastern Finance and Management, 14(5), 874–907. https://doi.org/10.1108/IMEFM-03-2019-0129
  • Salma, L., & Younes, B. (2014). Market power vs. financial stability: Evidence from the MENA region’s Islamic and conventional banking industries. International Journal of Monetary Economics and Finance, 7(3), 229–247. https://doi.org/10.1504/IJMEF.2014.066495
  • Singh, G., Halari, A., & Satoh, W. (2019). Corporate governance mechanisms and risk-taking in South Africa. International Journal of Governance and Ethics, 13(4), 361–384. https://doi.org/10.1504/IJBGE.2019.099568
  • Trinh, V. Q., Elnahass, M., Salama, A., & Izzeldin, M. (2020). Board busyness, performance and financial stability: Does bank type matter? European Journal of Finance, 26(7–8), 774–801. https://doi.org/10.1080/1351847X.2019.1636842
  • Younas, Z. I., Klein, C., Trabert, T., & Zwergel, B. (2019). Board composition and corporate risk-taking : A review of listed firms from Germany and the USA. 2002. Journal of Applied Accounting Research, 20(4), 526–542. https://doi.org/10.1108/JAAR-01-2018-0014
  • Zainuldin, M. H., Lui, T. K., & Yii, K. J. (2018). Principal-agent relationship issues in Islamic banks: A view of Islamic ethical system. International Journal of Islamic and Middle Eastern Finance and Management, 11(2), 297–311. https://doi.org/10.1108/IMEFM-08-2017-0212
  • Zeineb, G. B., & Mensi, S. (2018). Corporate governance, risk and efficiency: Evidence from GCC Islamic banks. Managerial Finance, 44(5), 551–569. https://doi.org/10.1108/MF-05-2017-0186
  • Zhou, Z., Wang, H., & Cheng, X. (2020). Audit committee returnees and auditor choice: Evidence from China. Asian Review of Accounting, 28(4), 635–663. https://doi.org/10.1108/ARA-05-2020-0063