This study examines Shariah governance in Islamic banks by analyzing and comparing international and national Shariah governance codes across 11 countries and the annual reports of the largest ...stand-alone Islamic bank in each of these countries. Drawing upon the practice theory framework, this study identifies the similarities and differences across countries in Shariah governance practices, practitioners, and praxis. Regarding practices, we found that the 11 countries reviewed have adopted different approaches, i.e., strict, moderate, or flexible approaches, in developing regulations for Shariah governance structures and processes. The approach taken by each country, in turn, influences Shariah governance practitioners and praxis at the institutional level to some extent. Specifically, Islamic banks in countries belonging to the moderate and flexible groups are likely to be more varied in terms of Shariah governance practitioners as well as praxis (activities or processes) to ensure Shariah compliance as compared to their counterparts in countries with strict regulations. Analyzing current Shariah governance practices in these 11 countries can promote a greater understanding and resolution in addressing critical issues due to different contextual circumstances. Therefore, the findings of this study can provide relevant information for both regulators and practitioners to further improve the Shariah governance best practices in the Islamic banking industry.
This paper aims to describe the characteristics of members of management and supervisory boards in 6,489 joint-stock companies registered in the Polish National Court Register from 2001 to 2017 and ...to highlight differences between companies depending on their ownership structure: private vs. state-owned. We analysed features such as the term of office, gender, age, and nationality. The average term of a management board is two years and three months. In state-owned enterprises (SOE), this period is several days shorter. Meanwhile, supervisory boards have terms of two years and six months on average. In private companies, the term of office is two months longer than in SOEs. The average board member was 43.5 years old when appointed in private companies and about 45 years old in SOEs. Men predominate in the boardrooms. Comparing management boards, the underrepresentation of women is greater in SOEs. Meanwhile, in the case of private companies, women are more underrepresented on the supervisory boards. We show that the features of board members are statistically significant depending on the ownership structure, but these differences are not large.
Rad sustavno obraðuje odgovornost članova nadzornog odbora. Iako članovi nadzornog odbora ne vode poslove društva, njihova je uloga važna jer oni paze na to da se poslovi vode na način koji je ...prihvatljiv svim interesnim skupinama u društvu i oko njega. Pritom je njihova odgovornost ureðena po istom načelu kao i odgovornost članova uprave koji vode poslove društva. Takva odgovornost polazi od njihove temeljne obveze da djeluju u interesu društva. U radu se ponajprije obraðuje standard pažnje koji se traži od članova nadzornog odbora u obavljanju njihovih poslova, pri čemu se daje poseban osvrt na ulogu članova u nadzornom odboru vladajućeg društva i u nadzornim odborima ovisnih društava u koncernu. Potom se obraðuje učinak primjene pravila poslovne prosudbe kojom se štiti slobodna poduzetnička prosudba članova nadzornog odbora, a zatim i sukob interesa članova nadzornog odbora i povreda obveze čuvanja poslovne tajne. Rad se u nastavku pobliže bavi zahtjevom za naknadu štete prema članovima nadzornog odbora. Pritom se obraðuje pitanje prema kojim se članovima nadzornog odbora može postaviti takav zahtjev, pretpostavke odgovornosti za štetu i ostvarenje tog zahtjeva, a potom odricanja društva od tog zahtjeva i mogućnost sklapanja nagodbe izmeðu društva i člana nadzornog odbora. Zaključno se obraðuje odgovornost zbog iskorištavanja utjecaja u društvu.
The under-representation of women on boards is a heavily discussed topic—not only in Germany. Based on critical mass theory and with the help of a hand-collected panel dataset of 151 listed German ...firms for the years 2000-2005, we explore whether the link between gender diversity and firm performance follows a U-shape. Controlling for reversed causality, we find evidence for gender diversity to at first negatively affect firm performance and—only after a "critical mass" of about 30 % women has been reached—to be associated with higher firm performance than completely male boards. Given our sample firms, the critical mass of 30 % women translates into an absolute number of about three women on the board and hence supports recent studies on a corresponding "magic number" of women in the boardroom.
This study examines how the characteristics and quality of Shari'a supervisory board (SSB) influence the insolvency risk of Islamic banks. It employs unbalanced panel data of 43 Islamic banks in 15 ...countries between 2010 and 2020, which are hand-collected from the banks’ annual reports. The results indicate that the SSB quality index, SSB Islamic finance professional expertise and SSB competency increase insolvency risk while the SSB members with PhDs reduce it. Meanwhile, SSB size, SSB meetings, SSB gender diversity (SSBG) and SSB members from foreign countries have no significant influence on the insolvency risk. These findings have implications for policymakers and regulators in carving policies and regulations in restraining the SSB from taking excessive risk. They can also guide the Islamic banks' board of directors and shareholders in appointing the SSB members.
Performance of Islamic banks Musleh Alsartawi, Abdalmuttaleb
ISRA international journal of Islamic finance,
12/2019, Letnik:
11, Številka:
2
Journal Article
Recenzirano
Odprti dostop
Purpose
This paper aims to investigate the relationship between the composition of Sharīʿah supervisory boards (independence and frequency of meetings) and the performance of Islamic banks in the ...Gulf Cooperation Council (GCC) countries.
Design/methodology/approach
The study developed a multiple linear regression model, and data were collected from the annual reports of 48 standalone Islamic banks listed in the GCC countries covering the period between 2013 and 2017.
Findings
The results showed a statistically significant and negative relationship between the composition of the Sharīʿah supervisory boards and the performance of Islamic banks.
Research limitations/implications
As the current study used only one indicator, that is Return on Assets to measure performance, it is recommended to expand the framework of this study, through the addition of market-based performance indicators such as Tobin’s Q.
Practical implications
This study recommends the GCC countries to follow a more proactive Sharīʿah governance model to strengthen their frameworks from both regulatory and non-regulatory aspects.
Originality/value
The study contributes to the Sharīʿah governance and Islamic banking literature relating to the GCC countries as previous studies gave no attention to the composition of Sharīʿah supervisory boards.
This study aims to investigate the relationship between sharia governance and sustainability performance in the Indonesian Islamic banking industry. Sharia governance is measured by the sharia ...supervisory board (SSB) score and the individual attributes of its members (size, number of meetings, educational background, and diversity). Sustainability performance (SP) is proxied by its economic, environmental, and social dimensions, as defined by the Global Reporting Initiative (GRI) framework. Secondary data from 2010—2020 company reports are used and analyzed using manual content analysis. Panel data regression is also employed to test the hypotheses and identify which individual attributes of the SSB influence sustainability performance. The results show that the SSB has a positive and significant effect on Indonesia’s overall SP of Islamic banking. Among the individual attributes, the frequency of SSB meetings has a positive and significant effect on overall SP, while the diversity of SSB members negatively affects economic and social SP. Meanwhile, SSB member’s size and educational background do not affect overall SP. The findings are expected to enhance understanding of Islamic bank’s development and approaches to addressing sustainability-related issues of Islamic bank. This study also contributes as consideration in the improvement of standard practices or the current implementation of sharia governance in Indonesia and to promote sustainable operations through Islamic corporate governance.
Purpose
The study aims to investigate the Shari’ah governance quality effectiveness, at the bank and national levels, on the value relevance of Islamic banks’ (IBs’) earning per share and book value ...per share.
Design/methodology/approach
Quantitative analyses are conducted using a panel of 40 listed IBs from 12 countries during 2012–2019. Data were retrieved from the Refinitiv Eikon database and banks’ annual reports.
Findings
The findings suggest that Shari’ah supervisory boards’ attributes negatively influence the value relevance of accounting information while the internal procedures positively impact it. The results also provide evidence of a complementary effect between Shari’ah governance mechanisms at the bank and national levels on the value relevance of accounting information.
Practical implications
IBs’ boards and managers need to be more aware of the role of Shari’ah governance and its impact on value relevance. The observed complementarity between Shari’ah governance systems at the bank and national levels may incite regulators to include comprehensive Shari’ah governance regulations in their best practices. Strengthening collaboration between regulators and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is also required to create an enabling environment for investors to rely on the AAOIFI accounting standards in their investment decision-making process.
Originality/value
Existing studies tend to ignore the effectiveness of Shari’ah governance quality at the bank level on value relevance. There is a similar lack of empirical research on the effectiveness of the centralized Shari’ah governance scheme on accounting issues.
The ideal election is an election whose process is good, qualified, and fair. Since the direct elections in 2014 until the simultaneous elections in 2019, election violations have often occurred, ...including election administration, election crimes, and the code of ethics of election organizers. The design of handling election administrative violations after the determination of the results: handling of the election administrative violations after the determination of election results, the original intense of Article 454 paragraph (6) and Article 461 paragraph (1) of the Election Law, and the ideal redesign in handling administrative violations in Bawaslu after the determination of election results. Research results: first, Bawaslu still receives election administrative reports after the determination of results. Second, the original intense of the norms limit the handling of election administrative violations to the process stage. Third, redesign the norms and the mechanism, then provide strict limits in the Constitutional Court Regulation.
The paper systematically elaborates on the liability of supervisory board members. Although the supervisory board members do not manage the business of the company, their role is important because ...they make sure that the company’s business is conducted in a way that is acceptable to all stakeholders of the company. At the same time, their responsibility is based on the same principle as the responsibility of the members of the management board who manage the company's business activities. Such responsibility stems from their fundamental obligation to undertake all their activities in the company’s interest. Foremost, the paper analyses the standard of care required from the supervisory board members in performance of their duties, with special reference to the role of supervisory board members in the parent company and in the supervisory boards of subsidiaries in the concern. Subsequently, the paper analyses the effects of business judgment rule application which protects the free entrepreneurial judgment of the supervisory board members. This is followed by analysis of issues relating to the conflict of interest of the supervisory board members and the breach of the trade secret. Afterwards, the paper deals more elaborately with the request for compensation of damages to the supervisory board members. More precisely, the paper analyses issues relating to the question against which supervisory board member can such request be made, conditions for establishing their liability for damages and enforcement of such request. Paper also analyses issues pertaining to the company’s waiver of that request as well as the possibility of concluding a settlement between the company and the supervisory board member. Ultimately, the responsibility for the exploitation of influence in the company is elaborated upon.
PDF
