Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia

Purpose - With the expansion of Islamic Banking, Islamic companies directing its activities on the principles of Shari’ah or the Islamic Law emerged. The goals of the conventional and Islamic companies are contrasting, hence raising the need for specific Islamic corporate governance architecture. Fo...

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Main Author: Amin, Nabeela
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/41985/
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author Amin, Nabeela
author_facet Amin, Nabeela
author_sort Amin, Nabeela
building Nottingham Research Data Repository
collection Online Access
description Purpose - With the expansion of Islamic Banking, Islamic companies directing its activities on the principles of Shari’ah or the Islamic Law emerged. The goals of the conventional and Islamic companies are contrasting, hence raising the need for specific Islamic corporate governance architecture. Focusing on the accountability concept, protection of the rights of all stakeholders and retaining the Shari’ah principles within the corporation, a model for Shari’ah corporate governance is established. Thereupon, the compliance of Islamic firms listed on Bursa Malaysia, with the framework developed is assessed. Design/Methodology/Approach – The study discusses why the conventional corporate governance Codes are inappropriate for Islamic companies and sets up a proper governance framework for the Islamic corporate bodies. Through content analysis, annual reports of 250 listed companies which are endorsed compliancy are analysed and their compliance to the proposed model is evaluated. Findings – In the course of the research, it is found that none of the firms comply fully with the structure as out of the 92 essential items needed for sound governance, the maximum score resulted to be 71 for a single company. Therefore, implying a persuasive need to enact a Shari’ah Corporate Governance Code. Originality/Value – The study integrates with the knowledge based on Shari’ah corporate governance and is targeted to enhance and support existing and prospective Islamic firms. To the best of the author’s knowledge, there have been no empirical studies to assess the governance practiced of Shari’ah compliant firms. The study thus, contributes to the literature of the subject by entrenching a code pushing for accountability, transparency, disclosure, the role of Shari’ah Boards and audit while inculcating Islamic values.
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spelling nottingham-419852017-10-13T01:08:57Z https://eprints.nottingham.ac.uk/41985/ Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia Amin, Nabeela Purpose - With the expansion of Islamic Banking, Islamic companies directing its activities on the principles of Shari’ah or the Islamic Law emerged. The goals of the conventional and Islamic companies are contrasting, hence raising the need for specific Islamic corporate governance architecture. Focusing on the accountability concept, protection of the rights of all stakeholders and retaining the Shari’ah principles within the corporation, a model for Shari’ah corporate governance is established. Thereupon, the compliance of Islamic firms listed on Bursa Malaysia, with the framework developed is assessed. Design/Methodology/Approach – The study discusses why the conventional corporate governance Codes are inappropriate for Islamic companies and sets up a proper governance framework for the Islamic corporate bodies. Through content analysis, annual reports of 250 listed companies which are endorsed compliancy are analysed and their compliance to the proposed model is evaluated. Findings – In the course of the research, it is found that none of the firms comply fully with the structure as out of the 92 essential items needed for sound governance, the maximum score resulted to be 71 for a single company. Therefore, implying a persuasive need to enact a Shari’ah Corporate Governance Code. Originality/Value – The study integrates with the knowledge based on Shari’ah corporate governance and is targeted to enhance and support existing and prospective Islamic firms. To the best of the author’s knowledge, there have been no empirical studies to assess the governance practiced of Shari’ah compliant firms. The study thus, contributes to the literature of the subject by entrenching a code pushing for accountability, transparency, disclosure, the role of Shari’ah Boards and audit while inculcating Islamic values. 2017 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/41985/1/AminNabeela-41985.pdf Amin, Nabeela (2017) Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia. [Dissertation (University of Nottingham only)] Corporate governance Islamic finance Shari’ah governance Shari’ah compliant firms Malaysia
spellingShingle Corporate governance
Islamic finance
Shari’ah governance
Shari’ah compliant firms
Malaysia
Amin, Nabeela
Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia
title Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia
title_full Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia
title_fullStr Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia
title_full_unstemmed Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia
title_short Redefining Shari’ah Corporate Governance: A cross- industry analysis of Malaysia
title_sort redefining shari’ah corporate governance: a cross- industry analysis of malaysia
topic Corporate governance
Islamic finance
Shari’ah governance
Shari’ah compliant firms
Malaysia
url https://eprints.nottingham.ac.uk/41985/