The development of ISR in Indonesia is still relatively slow. Several previous studies have proven that all the Sharia banks in the research sample have not achieved 100% implementation and ...disclosure of ISR. This study uses several independent variables, namely company size, profitability, liquidity, leverage, sharia supervisory board, audit committee, board of commisioners. Based on the results of the previous research, there is still a research gap that occurs. This study used a sample of 13 Sharia Commercial Banks in 2016-2019. The results show that the variables of company size, profitability, liquidity, leverage, and the board of commissioners affect the level of ISR disclosure. Meanwhile, the sharia supervisory board and audit committee did not affect the level of ISR disclosure.
The purpose of the study is to thoroughly outline how the hubris behavior of chief executive officers (CEO) is detrimental to Islamic banks’ (IBs) performance. Specifically, this study attempts to ...examine the role of the Sharia supervisory board (SSB), board vigilance, and CEO power in the relationship between CEO hubris behavior and decreased IBs’ performance. This study observes IBs’ performance during the period from 2014 to 2020 and develops eight models to test their determinants. Empirical testing of all models shows that CEO hubris has a detrimental impact on IBs’ performance. The moderating impact test shows the following results: firstly, the presence of SSB, which is represented by the reputation of its members, reduces the detrimental impact of hubris behavior by CEOs on IBs’ performance, while that impact, which is represented by member expertise, does not have a moderating effect. Second, the size and independence of the BOC both weaken the negative relationship between CEO hubris and IBs’ performance. Third, CEO power as represented by tenure and ownership has no moderating effect.
History and legal regulations concerning the structure and functioning of the Supervisory Board of the National Fund for Environmental Protection and Water Management are presented in this article. ...The introduction discusses the historical background of the Fund. Composition and appointment and dismissal of the Supervisory Board members, their rights and responsibilities, as well as the Board's tasks are described in the successive sections. Procedures of the Board's sessions and resolutions and documentation of its activities are presented. The statistics contained in the reports that the Fund's Supervisory Board submits annually to the competent minister are analysed in the final section. The paper concludes with an assessment of legal regulations applying to the Board.
Accountability in Islamic financial institution Aribi, Zakaria Ali; Arun, Thankom; Gao, Simon
Journal of Islamic accounting and business research,
01/2019, Letnik:
10, Številka:
1
Journal Article
Recenzirano
Purpose
The purpose of this paper is to explore whether any discrepancy exists between the disclosed in SSB reports of Islamic banks and the disclosure index which was based on stakeholders’ ...expectation.
Design/methodology/approach
This study uses contents analysis as the research method to explore Shariâ’ah audit reporting practices of Islamic Banks.
Findings
The study finds that the level of disclosures overall by IFIs in the sample is rather low compared to the stakeholder expectations.
Practical implications
This paper has important implication for policy makers as it contribute to the debate on that uniform disclosure standards across the globe need to be implemented to ensure a uniform level of disclosure by Islamic banks.
Originality/value
This study is amongst the few studies that examine and explore the nature and extent of
Shari’ah
Supervisory Board in Islamic banks.
Sharia compliance is an absolute requirement that must be fulfilled by financial institutions that conduct business activities based on sharia principles as a manifestation of the characteristics of ...Islamic financial institutions. Supervisory Board (SB) contribution oversees and is responsible for ensuring all products and procedures of Islamic banks are by sharia principles. This study aims to measure the ratio of participation, effectiveness and efficiency of the sharia supervisory board to Islamic banking in Indonesia. This study used the AHP method with three indicators; the rate of contributions measured through sharia branch office in public Islamic bank and sharia business unit, to the effectiveness ratio measured by the total productive assets variable in public Islamic and sharia businesses unit, while the efficiency ratio is measured by aggregate variables of operating expenses and labour costs for Islamic public bank and sharia businesses unit. Based on this research, here are some critical result such as the ratio of the overall contribution is useful. The effectiveness ratio shows that the Supervisory Board (SB) is ineffective or not valuable for lending activities in Islamic banks based on Islamic public bank branch offices and sharia businesses unit. And the results for efficiency ratios indicate that overall Supervisory Board (SB) is less efficient for Islamic banks when issuing operational costs on Supervisory Board (SB) contributions.
The introduction of the upper echelons theory by Hambrick and Mason in 1984 raised the interest in Top Management Teams (TMT) as key decision makers and in their impact on organizations’ performance. ...As initial search for the relation between TMT structure and company effectiveness did not bring conclusive results, recently the emphasis has been put on TMT functioning and group processes. Affective conflicts defined as a disagreement between team members caused by personal dislikes are one of them. The main objective of this article is to enrich theoretical considerations with the empirical identification of the relationship between affective conflicts in supervisory boards and their effectiveness. Moreover, various determinants of affective conflicts were examined. Apart from theoretical analysis of the problem, the value of this article is the presentation of the results of own empirical study conducted among members of supervisory boards representing 46 public companies operating in Poland. The results showed that affective conflicts decrease board performance, but the relation is not statistically significant. It was also observed that the strongest determinats of affective conflicts are work organization, education level of board memebers, and team cohesiveness. Conclusions are useful for the organization and moderation of board meetings and the selection of candidates.
Islamic banking in carrying out its performance is not only business-oriented but also social orientation while still based on Islamic principles, that is what distinguishes Islamic banks from ...conventional banks. Social performance in Islamic banks can be realized through its role in providing benefit to mankind based on Sharia goals. The purpose of this study was to determine the effect of Intellectual Capital, Sharia Compliance, Education, and Reputation of the Sharia Supervisory Board on Social Performance. The population used in this study is Islamic Commercial Banks in 2008-2020 which are registered with the Financial Services Authority. The sampling technique used is purposive sampling technique with pooled unbalance sample in order to obtain observational data of 131 data that have met the criteria. The data analysis technique used is multiple regression analysis. The results of this study indicate that the variables of Sharia Compliance, Education, and Reputation of the Sharia Supervisory Board (SSB) have a significant positive effect on the Social Performance of Islamic banking. While the variable Intellectual Capital does not affect the social performance of Islamic banking. If Islamic banking in Indonesia is able to maximize the implementation of sharia compliance, maintain the quality of DPS education, as well as the reputation of DPS to remain good, the social performance will be even better, this can also be supported by intellectual capital if its implementation is managed and maximized.
Purpose
Given the relative importance of the Shari’ah supervisory boards (SSBs) in Islamic banks’ (IBs’) performance, this study aims to examine the impact of SSB diversity on IBs’ performance from ...the stakeholders’ perspective in the context of Pakistan.
Design/methodology/approach
Random-effects model and generalized method of moment are used to investigate the impact of SSB diversity on IBs’ performance across a panel data of 22 Islamic banks in Pakistan from 2005 to 2020 inclusive.
Findings
The findings of this study show that SSB size, SSB relevant educational background diversity, bank’s size and bank’s stability have a positive impact on IBs’ performance. In contrast, SSB age, nationality and cross-membership diversities have a negative impact on IBs’ performance. Moreover, SSB gender, tenure and general educational diversities have no significant impact on IBs’ performance.
Research limitations/implications
SSB diversity and IBs practices are different across different jurisdictions. This study is conducted on IBs in Pakistan because of data constraints; thus, the results of this study may not be generalizable to other countries' IBs.
Practical implications
In structuring the SSBs’ framework, the regulatory authorities and policymakers should consider mandating an ideal SSB size and hiring relevant qualified members with low cross-membership to improve IBs' performance. Thus, the structure potentially attracts Muslim stakeholders, enhances their satisfaction and improves IBs' performance.
Social implications
Having diversified members in the SSB, IBs equally benefit both individual and group stakeholders in society. Diversity in SSB members enhances IBs' performance and the social welfare of various stakeholders in society.
Originality/value
To the best of the authors' knowledge, this is the first empirical research that examines comprehensively the impact of SSB structural and demographic diversities on IBs' performance in the context of Pakistan. This paper contributes to the unique Shari’ah governance structure in the context of Pakistan. Additionally, this study may serve to assist IBs’ stakeholders in better comprehending the SSB practices of IBs in Pakistan.
Purpose
The purpose of this study is to empirically examine the determinants and outcomes of Islamic corporate social responsibility (ICSR) adoption in Islamic bank branches in Pakistan. The research ...framework examines the influence of stakeholder’s pressure on ICSR adoption. It also analyses the relationship between ICSR adoption and intangible outcomes achieved by the Islamic bank branch.
Design/methodology/approach
A total of 400 questionnaires were distributed through a mail survey to Islamic bank branches in Pakistan. The respondents of the study were the branch manager of Islamic bank branches in Pakistan. A simple random sampling technique was used and resulted in the collection of 293 usable questionnaires. SMART PLS was used to statistically analyse the data using partial least squares structural equation modelling approach. The measurement and structural models were analysed.
Findings
The results indicate a significant and positive relationship between Shariah supervisory board pressure, competitor pressure and ICSR adoption in Islamic bank branches. A moderate strength positive relationship was found out between top management pressure and ICSR adoption. Results reveal that customer pressure and community pressure have an insignificant influence on ICSR adoption. Data analysis shows that the adoption of ICSR practices have a significant and positive influence on an Islamic bank branch’s Intangible outcomes.
Research limitations/implications
The sample size was relatively small because of the limited time duration.
Originality/value
The construct of ICSR has not been extensively researched upon especially through empirical studies. Limited research exists in the area of factors than can influence Islamic bank branches to adopt ICSR practices and currently no empirical research has focussed on the intangible outcomes that can be achieved through ICSR adoption by an Islamic bank branch. The limited study exists in the Pakistan context as well, which is a rapidly growing Islamic banking industry.
Purpose
The purpose of this paper is to systematically review the study of the relationship between sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and internal ...sharia compliance, and whether it can affect the performance of Islamic banking.
Design/methodology/approach
Literature search consists of two steps: random literature review and systematic literature review. The methodology adopted in this article is a systematic literature review.
Findings
The variable of internal sharia compliance, sharia risk and internal sharia audit on one of the indications of SG newly researched variable which will later be used as a new paradigm, to measure the implementation of Islamic sharia principles in sharia banking.
Practical implications
The development of a conceptual framework by using measurement of the new SG has practical implications for sharia bank, which can later be applied to also increase sharia banking performance by complying with Islamic sharia principles. This new concept can be used as a reference by the Financial Service Authority (Otoritas Jasa Keuangan) to establish regulations regarding SG framework, especially in Indonesia.
Originality/value
Further research can add more of it or replace it with other variables that are more relevant, in such a way that it could be empirically tested on how the independence and remuneration (lit. performance allowance) of SSB and the internal sharia control team can affect the performance of sharia banks.
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