Corporate Governance In Islamic Financial Institutions
حوكمة الشركات في المؤسسات المالية الإسلامية
DOI:
https://doi.org/10.31436/ijfus.v5i1.227Keywords:
Corporate Governance, Sharī‛ah, ShareholdersAbstract
Sound corporate governance is important as it ensures that IFIs are operating within the principles of the Sharī‛ah in its overall activities and that it is performing its role in disclosing profits motivated by the need to maximize the interest of shareholders. The main objective of this article is to discuss the elements of corporate governance and to build a framework that conceptualises corporate governance from the Sharī‛ah perspective. The research has combined the descriptive and analytical methods. The study shows that the model of corporate governance within the premise of the Islamic economic system leans towards being stakeholders-centred as the governance structure in Islam safeguards all rights and interests of all stakeholders and shareholders.
Downloads
Metrics
References
Abou-El-Fotouh, H. (2009). Corporate Governance and Islamic Finance. Islamic Finance News, 15. Retrived from www.islamicfinancenews.com.
Abu Tapanjeh, A.M. (2009). Corporate Governance from the Islamic perspective: A Comparative Analysis with OECD Principles. In Critical Perspective on Account, 20, 556-567. Retrieved from www.elsevier.com/locate/cpa.
American Heritage Dictionary. (2007). Available at http://www.credoreference.com/entry/hmdictenglang/corporation Access Date: 21st July 2010.
Basel Committee on Banking Supervision (2006). Enhancing Corporate Governance for Banking Organisations, 4. Retrieved from www.big.org.publ/bcbs168.pdf
Black, B. (2001). The Corporate Governance Behaviour and Market Value of Russian Firms. Emerging Markets Review, 2, 89-108.
Black, B.S., Jang, H., & Kim, W. (2006). Predicting Firms’ Corporate Governance Choices: Evidence from Korea. Journal of Corporate Finance, 12(6), 660-691.
BNM. (2011). Guildlines on Corporate Governance for Licensed Institutions. Kuala Lumpur: Bank Negara Malaysia. http://www.bnm.gov.my/guidelines/01_banking/04_prudential_stds/16_corporate_governance.pdf
Cadbury, A. (2002). Corporate Governance and Chairmanship, A Personal Overview. Oxford: Oxford University Press.
Caprio, G. Jr., & Levine, R. (2002). Corporate Governance of Banks: Concepts and International Observations. Available at: http://icf.som.yale.edu/ConferencePapers/backup_old_iicg/april_5/CAPRIO.pdf. Access Date: 20th April 2008
Colley, J. L. (2005). What is Corporate Governance? New York: Mcgraw-Hill, 3.
Cowan, N. (2014). Corporate Governance that works, Person Education South Asia Pte Ltd.
Dube, I. (2009). Corporate Governance. Lexis Nexis Butterworth Wadhwa Nagpur. Delhi, India.
Grais, W., & Pellegrini, M. (2006). Corporate Governance and Sharī‛ah Compliance in Institutions Offering Islamic Financial Services. World Bank Policy Research Working Paper No. 4054. Available at: http://wwwwds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2006/11/08/000016406_20061108095535/Rendered/PDF/wps4054.pdf Access Date: 10th June 2017.
Grais, W., & Pellegrini, M. (2006). Corporate Governance in Institutions Offering Islamic Financial Services Issues and Options. Corporate Governance and Sharī‛ah Compliance in Institutions Offering Islamic Financial Services. World Bank Policy Research Working Paper No. 4054. Available a thttp://econ.worldbank.org. https://openknowledge.worldbank.org/handle/10986/9030.
Hasan, Z. (2009). Corporate Governance: Western & Islamic Perspectives. International Review of Business Research Papers, 5(1), 277-293.
Hasan, Z. (2011). A Survey of Sharī‛ah Governance Practices in Malaysia, GCC Countries and the UK: Critical Appraisal. International Journal of Islamic and Middle Eastern Finance and Management, 4(1). 30-51.
Hasan, Z. (2011). Sharī‛ah Governance in Islamic Financial Institutions in Malaysai, GCC Countries and the UK. Durham Theses, Durham University. Available at Durham E-Theses Online: http://etheses.dur.ac.uk/810/.
Hassan, R. (2014). Corporate Governance Practice in Islamic Financial Institutions. Kuala Lumpur: IBFIM.
Hawkamah. (2008). Hawkamah-The Institute of Corporate Governance. Available at: http://www.hawkamah.org/hawkamah/index.html. Access date: 28th July 2008.
Jones T.M. (1995). Instrument Stakeholder Theory: A Synthesis of Ethics and Economics. Academy of Management Review, 20, 404-437.
Lahsasna, A., & Saba, I. (2014). Sharī‛ah Governance in the Islamic Financial Institution: Issues and Challenges. 5th International Conference on Business and Economic Research (5th ICBER 2014) Proceeding, 24-25.
Lipman, F.D., & Lipman, L.K. (2006). Corporate Governance Best Practices: Strategies for Public, Private, and Not-for Profit Organizations. Hoboken, NJ: Wiley, 3.
Lweis, K. (2005). Islamic Corporate Governance. International Association for Islamic Economics Review of Islamic Economics, 9(1- 2), 5-29.
Mallin, C.A. (2007). Corporate Governance. (2nd ed.). Oxford: Oxford University Press.
Millstein, I.M. (1998, 2 February). The Evaluation of Corporate Governance in the U.S. Remarks to the World Economic Forum, Davos, Switzerland.
Mizushima, T. (2014). Corporate Governance and Sharī‛ah Governance at Islamic Financial Institutions: Assessing from Current Practice in Malaysia, Reitaku. Journal of Interdisciplinary Studies, 22(1).
Mokhtar, K.A., & Al-Omran, N.S. (2011). Theories and Principles of Good Governance in the Sharī‛ah and the Civil Law: its Constitutional Framework in the United States and Egypt. Malayan Law Journal, 4, cli-clxxii.
Monks, A., & Minow, N. (2008). Corporate Governance, The Atrium, Southern Gate, Chichester, West Susses P019 8SQ, England.
Nathan, S., & Ribiere, V. (2007). From Knowledge to Wisdom: The Case of Corporate Governance in Islamic Banking. The Journal of Information and Knowledge Management Systems, 37(4), 471–483.
OECD. (2004). OECD Principles of Corporate Governance (Revised). Paris: OECD. Available: http://www.oecd.org/. Access Date: 25th February 2010.
Rezaee, Z. (2009). Corporate Governance and Ethics, RRD Crawfordsville, United States.
Rezaee, Z. (2009). Corporate Governance and Ethics, RRD Crawfordsville, United States.
Salacuse, J.W. (2003). Corporate Governance, Culture and Convergence: Corporation American Style or With European Touch. Law and Business Review of the Americas, 9, 33-62.
Scott, K. (2003). The Role of Corporate Governance in South Korean Economic Reform, in Joel M. Stern and Donals H. Chew, Jr. (Eds.), The Revolution in Corporate Finance (pp. 519-534). United Kingdom: Blackwell Publishing.
Selvaggi, M., & Upton, J. (2008). Governance and Performance in Corporate Britain. The Association of British Insurers ABI Research Paper 7. Available at: http://www.gmiratings.com/noteworthy/ABI_Feb_2008.pdf. Access Date: 10th June 2010.
Shleifer, A., & Vishny, R. (1997). A Survey of Corporate Governance. Journal of Finance, 52, 737-783.
Solomon, J., & Solomon, A. (2004). Corporate Governance and Accountability. West Sussex, England: John Wiley and Sons Ltd.
Sourial, M.S. (2004). Corporate Governance in the Middle East and North Africa: An Overview. Mimeo. Cairo: Ministry of Foreign Trade.
Stevenson, A. (2010). Oxford Dictionary of English. OUP Oxford, Retrieved from https://books.google.com.my/books?id=anecAQAAQBAJandsource=gbs_navlinks_s”
Wolfensohn, J. (1999). Corporate Governance is Promoting Corporate Fairness, Transparency and Accountability as quoted in Financial Times, 20.
Yamak, S., & Suer, O. (2005). State as a Stakeholder. Corporate Governance: International Journal of Business in Society, 5(2), 111-120.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The IIUM journal follows the open access policy.
Consent to publish: The Author(s) agree to publish their articles with IIUM Press.
Declaration: The Author(s) declare that the article has not been published before in any form and that it is not concurrently submitted to another publication, and also that it does not infringe on anyone’s copyright. The Author(s) holds the IIUM Press and Editors of the journal harmless against all copyright claims.
Transfer of copyright: The Author(s) hereby agree to transfer the copyright of the article to IIUM Press, which shall have the exclusive and unlimited right to publish the article in any form, including in electronic media. However, the Author(s) will reserve the right to reproduce the article for educational and scientific purposes provided that the written consent of the Publisher is obtained. For the article with more than one author, the corresponding author confirms that he/she is authorized by his/her co-author(s) to grant this transfer of copyright.