The trade-off between knowledge accumulation and independence: The case of the Shariah supervisory board within the Shariah governance and firm performance nexus

2021 ◽  
pp. 101549
Author(s):  
Seng Kiong Kok ◽  
Giorgioni Gianluigi ◽  
Farquhar Stuart
Keyword(s):  
Firm Performance ◽  
Supervisory Board ◽  
Trade Off ◽  
Knowledge Accumulation ◽  
Shariah Governance

scholarly journals The effect of diversification on firm performance: Evidence from Listed Companies in Vietnam

2021 ◽  
Vol 9 (02) ◽  
pp. 2072-2180
Author(s):  
Dai Long Khuc ◽  
Thi Thu Bui ◽  
Quynh Mai Ha
Keyword(s):  
Firm Performance ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Listed Companies ◽  
Ceo Duality ◽  
Return On Equity ◽  
Independent Variables ◽  
Negative Effect ◽  
And Gender ◽  
The Relationship

The study was conducted to investigate the relationship between diversification on Board and firm performance. The investigation has been performed using panel data procedure for a sample of 204 Vietnamese listed companies in two different groups: Large cap and Mid cap, listed in HOSE and HNX during the period of five years from 2015 to 2019. The study uses three performance measures (including return on equity, return on asset, Tobin’s Q) as dependent variable. The independent variables for measurement of diversification on Board are the number of females and the diversification for Supervisory Board are the number of females only. Other independent variables are average age of Board member, CEO duality and the number of independent directors. The results indicated that firm performance have positive relationship with nationality diversity on Board and gender diversity on Supervisory Board. CEO duality shows a significant result of negative effect on firm performance.

scholarly journals Do the Characteristics of Independent Directors and Supervisory Board Members Matter in China?

2016 ◽  
Vol 2 (3) ◽  
pp. 27 ◽  
Author(s):  
Hongmei Xu ◽  
Jiang Lin
Keyword(s):  
Decision Making ◽  
Firm Performance ◽  
Supervisory Board ◽  
Clear Relationship ◽  
Independent Directors ◽  
Board Members ◽  
Decision Making Process ◽  
Listed Firms ◽  
Empirical Results

This paper investigates and compares the characteristics of independent directors and supervisory board members in Chinese listed firms. The occupational backgrounds of independent directors and supervisory board members in listed firms are very different. Besides, different firms have different preferences in employing independent directors and supervisory board members according to their demands. Moreover, the empirical results show that characteristics of independent directors and supervisory board members have no clear relationship with firm performance. No matter their professional backgrounds or age, the independent directors and supervisory board members do not have the authority to affect the decision making process of management. Thus they cannot really contribute to firm performance.

scholarly journals Optimization the Role of Shariah Supervisory Board for Shariah Governance in Islamic Banking

2020 ◽  
Vol 4 (1) ◽  
pp. 47
Author(s):  
Izzani Ulfi ◽  
Ujang Syahrul Mubarrok ◽  
Muhamad Wahyudi
Keyword(s):  
Literature Review ◽  
Banking Industry ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Shariah Governance

Many studies show that one of the biggest challenges in Islamic banking is related to lack of proper and effective Shariah governance. By focusing on the role of Shariah Supervisory Board (SSB), this paper attempts to extract some keys on how to achieve better performance and development of Islamic banking industry by reviewing previous studies. This study was done by using literature review approach. This study concludes that increasing the size of SSB, improving higher skills and competences of SSB members, keeping the independency of SSB member as well as the need of Central Shariah Board (CSB) and shariah auditor would affect to better performance of Islamic banking.

Dynamic study of corporate governance structure and firm performance in China

2019 ◽  
Vol 13 (2) ◽  
pp. 299-317 ◽  
Author(s):  
Lin Shao
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Generalized Method Of Moments ◽  
Supervisory Board ◽  
Governance Structure ◽  
State Ownership ◽  
Content Type ◽  
Listed Firms ◽  
The Impact ◽  
The Relationship

Purpose The paper aims to provide a comprehensive investigation of the relationship between corporate governance (CG) structure and firm performance in Chinese listed firms from 2001 to 2015. The authors’ motivation derives from the fact that the CG system in China is different from those in the US, the UK, Germany, Japan and other countries. Design/methodology/approach A large unbalanced sample, covering more than 22,700 observations in Chinese listed firms, was used to explore, by means of a system-generalized method-of-moments (GMM) estimator, the relationship between CG structure and firm performance to remove potential sources of endogeneity. Findings Results show that Chinese CG structure is endogenously determined by the CG mechanisms investigated: there is no relationship between board size (including independent directors) and firm performance; CEO duality has a significantly negative effect on firm performance; concentration of ownership has a significantly positive influence on firm performance; managerial ownership is negatively correlated with firm performance; state ownership has a significantly positive effect on firm performance; and a supervisory board is positively correlated with firm performance. Practical implications The findings provide policymakers and firm managers with useful empirical guidance concerning CG in China. Originality/value Few integrative studies have examined the impact of CG structure on firm performance in China. This study adds new empirical evidence that the relation between CG structure and performance in China is endogenous and dynamic when controlling for unobserved heterogeneity, simultaneity, and dynamic endogeneity.

scholarly journals Responsibilities of board of directors and enterprise efficiency in Vietnam stock market

2014 ◽  
Vol 17 (1) ◽  
pp. 74-87
Author(s):  
Minh Hoang Nguyen ◽  
Hien Thu Nguyen
Keyword(s):  
Firm Performance ◽  
Stock Market ◽  
Board Of Directors ◽  
Supervisory Board ◽  
Listed Companies ◽  
Market Capitalization ◽  
Study Results ◽  
Development Orientation ◽  
The Impact ◽  
The Relationship

Board of Directors and the Supervisory Board play an important role in the activities of the firm, because they influence the operational efficiency as well as the development orientation of the business. The study was conducted to survey the impact of the responsibilities of the board and the supervisory board on the effectiveness of listed companies on the stock market. A set of data consisting of 200 firms with the largest market capitalization on the stock market in 2011 has been obtained. The study results showed the correlation between the responsibilities of the Board and the Supervisory Board and the performance of the firm. The study also looked at the influence of industry factors on the relationship between the responsibilities of the board and the supervisory board and the performance of the business. The results showed that there is evidence to conclude the impact of industry factors on the relationship between the responsibilities of the Board and the Supervisory Board on firm performance.

scholarly journals The influences of Shariah governance mechanisms on Islamic banks performance and Shariah compliance quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Kausar Alam ◽  
Mohammad Mizanur Rahman ◽  
Mahfuza Kamal Runy ◽  
Babatunji Samuel Adedeji ◽  
Md. Farjin Hassan
Keyword(s):  
Resource Dependence ◽  
Positive Impact ◽  
Supervisory Board ◽  
Islamic Banks ◽  
Content Type ◽  
Political Situation ◽  
Quality Image ◽  
And Performance ◽  
Shariah Governance

PurposeThe purpose of this paper is to examine the influences of Shariah governance (SG) mechanisms on Islamic banks' performance and Shariah compliance quality in the context of Bangladesh.Design/methodology/approachA semi-structured personal interview tactic was applied to accomplish the research objectives. The data were collected from the regulators, Shariah supervisory boards, Shariah department executives and Shariah experts from the Central Bank (Bangladesh Bank) and Islamic banks in Bangladesh.FindingsThe study discovers that the quality of the Board of Directors (BODs), Shariah Supervisory Board (SSB), management and Shariah executives have both positive and negative influences on the Shariah compliance quality, image, goodwill and performance of Islamic banks' in Bangladesh. The compositions, formations and quality of SSB and Shariah officers positively influence the Islamic banks' fatwas, Shariah decisions, compliance quality and firm performance. The study also finds that prevailing banking pressure, current political situation, the willingness of BOD and management and social limitations impact Islamic banks' performance, Shariah compliance quality, image and goodwill.Research limitations/implicationsBased on our findings, if the regulators, BODs and Islamic banks can manage effective and efficient executives, it will create a positive impact on Islamic banks' performance, image, goodwill and quality compliance. As the prevailing banking pressure, current political situation and social limitations hinder the functions and employment system of the Islamic banks as well as result the Islamic banks' image, performance, Shariah implementations and compliance. Thus, the theorist needs to consider these mechanisms in extending the agency, stakeholder and resource dependence theories.Originality/valueThis research extends the literature concerning the influences of Islamic banks' SG mechanisms in Bangladesh. The study also argued not only the efficient and effective mechanisms but also the prevailing banking pressure, current political situation and social limitations impact on Islamic banks' performance and Shariah compliance quality.

The practices of Shariah governance systems of Islamic banks in Bangladesh

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Md. Kausar Alam ◽  
Md. Mizanur Rahman ◽  
Fakir Tajul Islam ◽  
Babatunji Samuel Adedeji ◽  
Md. Abdul Mannan ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Central Bank ◽  
Institutional Theory ◽  
Financial Services ◽  
Supervisory Board ◽  
Structured Interview ◽  
Islamic Banks ◽  
Content Type ◽  
Ontological Approach ◽  
Shariah Governance

Purpose The purpose of this study is to explore the practices of Shariah governance (SG) systems in terms of their guidelines, current operational procedures, internbal policies and structures and regulatory framework of Islamic banks in Bangladesh from the viewpoints of Shariah, Tawhidic approach/ontological approach and Shuratic process of Islamic corporate governance and institutional theory. Design/methodology/approach A semi-structured interview tactic has been applied to attain the objective. Overall, data has been collected from the regulators, Shariah supervisory board members, Shariah department executives and experts from the central bank and Islamic banks of Bangladesh. Findings The study finds that Islamic banks do not follow complete Shariah principles in all aspects of SG nor violate them fully in their overall functions due to less accountability, which contradicts the concept of the Tawhidi epistemological process of Islamic corporate governance. Islamic banks announce that they are following Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) guidelines, but in practice, they do not follow the instructions accurately because all of the standards and policies of AAOIFI and the Islamic Financial Services Board are not applicable in Bangladesh due to its cultural, legal and regulatory structures. It is found that Islamic banks in Bangladesh have a lower practice of maqasid as-Shariah and Tawhidic approach and Shuratic process. Research limitations/implications The study significantly contributed to the central bank of Bangladesh and Islamic banks by exploring the SG systems for their further enhancement. The research provides some suggestions for improving existing SG systems and enhancing more application of SG guidelines and Shariah principles in the overall operations of the Islamic banks in Bangladesh. Originality/value This research extends the literature regarding the Islamic banks’ SG practices in Bangladesh. The study also contributes to Shariah, Tawhidic approach/ontological approach and Shuratic process of Islamic corporate governance and institutional theory by exploring the Islamic banks’ existing SG practices in Bangladesh.

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