Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions

The purpose of this research is to develop a comprehensive theoretical framework for interpreting Shariah governance mechanism in Islamic financial institutions (IFIs). After reviewing existing theories that were used to explain the phenomenon of corporate governance, three most commonly used theori...

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Main Authors: Sheikh Obid, Siti Normala, Naysary, Babak
Format: Article
Language:English
English
Published: Palgrave Macmillan Ltd. 2014
Subjects:
Online Access:http://irep.iium.edu.my/58540/
http://irep.iium.edu.my/58540/1/58540_Toward%20a%20comprehensive%20_article.pdf
http://irep.iium.edu.my/58540/2/58540_Toward%20a%20comprehensive%20_scopus.pdf
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author Sheikh Obid, Siti Normala
Naysary, Babak
author_facet Sheikh Obid, Siti Normala
Naysary, Babak
author_sort Sheikh Obid, Siti Normala
building IIUM Repository
collection Online Access
description The purpose of this research is to develop a comprehensive theoretical framework for interpreting Shariah governance mechanism in Islamic financial institutions (IFIs). After reviewing existing theories that were used to explain the phenomenon of corporate governance, three most commonly used theories in the corporate governance and Shariah governance area namely agency theory, stewardship theory and stakeholder theory were used and integrated based on their interrelated concepts and their relationship with Shariah governance. The constructed theoretical framework includes five concepts, namely accountability, disclosure and transparency, competency, confidentiality and independency among the key functionaries in Shariah governance, which are perceived to be the principles of Shariah governance. This research is among the first attempts to build an integrated theoretical foundation for Shariah governance in IFIs and the developed theoretical framework can be used as the basis for interpretations and comparisons on the ideal versus practical situation of Shariah governance in IFIs.
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spelling iium-585402017-09-26T06:37:14Z http://irep.iium.edu.my/58540/ Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions Sheikh Obid, Siti Normala Naysary, Babak BP Islam. Bahaism. Theosophy, etc HG Finance The purpose of this research is to develop a comprehensive theoretical framework for interpreting Shariah governance mechanism in Islamic financial institutions (IFIs). After reviewing existing theories that were used to explain the phenomenon of corporate governance, three most commonly used theories in the corporate governance and Shariah governance area namely agency theory, stewardship theory and stakeholder theory were used and integrated based on their interrelated concepts and their relationship with Shariah governance. The constructed theoretical framework includes five concepts, namely accountability, disclosure and transparency, competency, confidentiality and independency among the key functionaries in Shariah governance, which are perceived to be the principles of Shariah governance. This research is among the first attempts to build an integrated theoretical foundation for Shariah governance in IFIs and the developed theoretical framework can be used as the basis for interpretations and comparisons on the ideal versus practical situation of Shariah governance in IFIs. Palgrave Macmillan Ltd. 2014-12-05 Article PeerReviewed application/pdf en http://irep.iium.edu.my/58540/1/58540_Toward%20a%20comprehensive%20_article.pdf application/pdf en http://irep.iium.edu.my/58540/2/58540_Toward%20a%20comprehensive%20_scopus.pdf Sheikh Obid, Siti Normala and Naysary, Babak (2014) Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions. Journal of Financial Services Marketing, 19 (4). pp. 304-318. ISSN 1363-0539 E-ISSN 1479-1846 https://link.springer.com/article/10.1057%2Ffsm.2014.26 10.1057/fsm.2014.26
spellingShingle BP Islam. Bahaism. Theosophy, etc
HG Finance
Sheikh Obid, Siti Normala
Naysary, Babak
Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions
title Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions
title_full Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions
title_fullStr Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions
title_full_unstemmed Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions
title_short Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions
title_sort toward a comprehensive theoretical framework for shariah governance in islamic financial institutions
topic BP Islam. Bahaism. Theosophy, etc
HG Finance
url http://irep.iium.edu.my/58540/
http://irep.iium.edu.my/58540/
http://irep.iium.edu.my/58540/
http://irep.iium.edu.my/58540/1/58540_Toward%20a%20comprehensive%20_article.pdf
http://irep.iium.edu.my/58540/2/58540_Toward%20a%20comprehensive%20_scopus.pdf