2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks
| Format: | General Document |
|---|
| _version_ | 1860798089913171968 |
|---|---|
| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2022-02-10 |
| format | General Document |
| id | 15878 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | THE MEDIATING EFFECT OF DISCLOSURE ON THE RELATIONSHIP BETWEEN GOVERNANCE MECHANISMS AND PERFORMANCE OF ISLAMIC BANKS (PHD_2022).pdf |
| person | Fahru Azwa Mohd Zain |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15878 |
| sourcemedia | Server storage Scanned document |
| spelling | 15878 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15878 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Mediating effects Copyright©PWB2025 Disclosure in accounting 2022-02-10 451 THE MEDIATING EFFECT OF DISCLOSURE ON THE RELATIONSHIP BETWEEN GOVERNANCE MECHANISMS AND PERFORMANCE OF ISLAMIC BANKS (PHD_2022).pdf Fahru Azwa Mohd Zain Relationship Between Governance Mechanisms And Performance Islamic Banks Banks and banking—Islamic countries Corporate governance—Islamic countries Financial performance 2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks The Muslim community does have higher anticipation towards the Islamic financial institutions (IFIs) in complying with corporate governance (CG) due to the additional risks that are embedded in Islamic financial instruments. Thus, a higher benchmark of CG from IFIs is expected in order to increase stakeholders‟ confidence in their institutions. This study examines whether the governance structure of Islamic banks has any relationship with their performance. The specific objective of the study is to investigate whether the relationship between CG as well as Shari‟ah Supervisory Board (SSB) strength and the performance of Islamic banks is affected by the mediating variables of the CG, Shari‟ah governance (SG) and corporate social responsibility (CSR) disclosures. The research procedures involve panel data analysis based on extracted applied from the database and annual reports of Islamic banks in the Southeast Asian (SEA) and the Gulf Cooperation Council (GCC) regions from 2012 to 2017, resulting in a sample set of 474 data observations from 79 Islamic banks. Content analysis is used to extract disclosure items from the annual reports of Islamic banks. Agency theory, stakeholder theory and legitimacy theory are used as the lens to explain the hypothesised relationships in this study. This study examines the characteristics of both CG (board size, board independence, board diligence, audit committee (AC) size, AC independence, AC financial expertise and AC diligence) and SSB (SSB size, SSB cross-memberships and SSB financial expertise). The ordinary least squares (OLS) and generalised least square (GLS) method were employed to estimate the model used considering the existence of heteroscedasticity and the serial correlation problems in the study. Bootstrapping analysis using structural equation modelling (SEM) based on Preacher and Hayes model was employed for testing the effect of disclosure of CG, SG and CSR on the relationships between CG and SSB strength on the performance of Islamic banks. The findings indicate that CG, as well as SSB strengths, have significant positive relationships with Islamic banks‟ performance. On the other hand, Islamic banks located in code law countries have lower performance than Islamic banks located in common law countries. The findings also reveal that Islamic banks located in countries with high Muslim populations have higher performance. Meanwhile, all variables of disclosure (CG, SG and CSR) in this study have partially mediated the relationships between CG as well as SSB strength and Islamic banks‟ performance. This study could provide a better understanding on aspects of CG and disclosure that influence Islamic banks‟ performance. The results of this study could contribute in terms of strengthening policies and regulations in relation to the roles, duties, and responsibilities of the board of directors, audit committee and SSB in sustaining the Islamic finance industry. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks |
| state | Terengganu |
| subject | Disclosure in accounting Banks and banking—Islamic countries Corporate governance—Islamic countries Financial performance Dissertations, Academic |
| summary | The Muslim community does have higher anticipation towards the Islamic financial institutions (IFIs) in complying with corporate governance (CG) due to the additional risks that are embedded in Islamic financial instruments. Thus, a higher benchmark of CG from IFIs is expected in order to increase stakeholders‟ confidence in their institutions. This study examines whether the governance structure of Islamic banks has any relationship with their performance. The specific objective of the study is to investigate whether the relationship between CG as well as Shari‟ah Supervisory Board (SSB) strength and the performance of Islamic banks is affected by the mediating variables of the CG, Shari‟ah governance (SG) and corporate social responsibility (CSR) disclosures. The research procedures involve panel data analysis based on extracted applied from the database and annual reports of Islamic banks in the Southeast Asian (SEA) and the Gulf Cooperation Council (GCC) regions from 2012 to 2017, resulting in a sample set of 474 data observations from 79 Islamic banks. Content analysis is used to extract disclosure items from the annual reports of Islamic banks. Agency theory, stakeholder theory and legitimacy theory are used as the lens to explain the hypothesised relationships in this study. This study examines the characteristics of both CG (board size, board independence, board diligence, audit committee (AC) size, AC independence, AC financial expertise and AC diligence) and SSB (SSB size, SSB cross-memberships and SSB financial expertise). The ordinary least squares (OLS) and generalised least square (GLS) method were employed to estimate the model used considering the existence of heteroscedasticity and the serial correlation problems in the study. Bootstrapping analysis using structural equation modelling (SEM) based on Preacher and Hayes model was employed for testing the effect of disclosure of CG, SG and CSR on the relationships between CG and SSB strength on the performance of Islamic banks. The findings indicate that CG, as well as SSB strengths, have significant positive relationships with Islamic banks‟ performance. On the other hand, Islamic banks located in code law countries have lower performance than Islamic banks located in common law countries. The findings also reveal that Islamic banks located in countries with high Muslim populations have higher performance. Meanwhile, all variables of disclosure (CG, SG and CSR) in this study have partially mediated the relationships between CG as well as SSB strength and Islamic banks‟ performance. This study could provide a better understanding on aspects of CG and disclosure that influence Islamic banks‟ performance. The results of this study could contribute in terms of strengthening policies and regulations in relation to the roles, duties, and responsibilities of the board of directors, audit committee and SSB in sustaining the Islamic finance industry. |
| title | 2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks |
| title_full | 2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks |
| title_fullStr | 2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks |
| title_full_unstemmed | 2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks |
| title_short | 2022_The Mediating Effect of Disclosure on The Relationship Between Governance Mechanisms and Performance of Islamic Banks |
| title_sort | 2022_the mediating effect of disclosure on the relationship between governance mechanisms and performance of islamic banks |