scholarly journals The Legal Reform Policy on the Shariah Supervisory Board Role’s in Indonesian Shariah Banks

BESTUUR ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 113
Author(s):  
Devi Triasari ◽  
Francesco De Zwart
Keyword(s):  
Banking System ◽  
Supervisory Board ◽  
Social Needs ◽  
Basic Knowledge ◽  
Related Field ◽  
Business Units ◽  
Supervisory Boards ◽  
Technical Issues ◽  
Muslim Majority ◽  
Legal Policies

<p>As Muslim majority country, Indonesia experiences the mushrooming of banks based on Islamic values (called shariah banking). The existence of sharia banking is followed by legal policies intended to support the progress of the business sector, including regulations regarding the Sharia Advisory Board, but the question is whether the policy is effective in the development of sharia banking in Indonesia. Adherent to that context, this study aims to examine the issues faced by the Sharia Supervisory Board in Indonesia. This article argues that there are at least fifth substantial problems related to the policies of the Sharia Supervisory Board in Indonesia, namely: (1) not all Shariah Supervisory Boards in Islamic business units have supported by a strong legal basis on which their operations are inducted to; (2) members of the Shariah Supervisory Board are appointed mostly based on their charisma and popularity in society, not of their knowledge and experience in related field; (3)ideally Shariah Supervisory Board must have recognized the banking system before becoming Shariah Supervisory Board, but the basic knowledge is not easy to understand when entering on technical issues; (4) many Shariah Supervisory Boards are not focused on shariah banks supervision duty because of their multi profession; (5) lack of advice related to product innovation and social needs issues</p>

Mengenal Investasi Dalam Dunia Syariah

AKADEMIKA ◽  
2016 ◽  
Vol 10 (1) ◽  
pp. 1-12
Author(s):  
Achmad Lubabul Chadziq
Keyword(s):  
Islamic Law ◽  
Banking System ◽  
Supervisory Board ◽  
Theory And Practice ◽  
Business Units ◽  
The Future ◽  
Trading Activities ◽  
Conventional Banks ◽  
Financial Transactions ◽  
Main Factor

Trading activities and business in accordance with sharia (Islamic law) are the ones that are not to do with unlawful products or services such as forbidden food, gambling or disobedience, including those classified as the unlawful practices such as usury, gharar and maysir. In fact, not all trading and business activities comply with shari'a. For that reason, the ulema (Muslim scholars) fatwa (verdict) is needed to ensure the fulfillment of these qualifications. The fatwa on the halal-haram of sharia financial transactions in Indonesia is stipulated by the Indonesian Ulema Council (MUI) through the so-called National Sharia Council (DSN) with the help of practitioners and its implementation is with the help of the Sharia Supervisory Board (DPS). One of the important milestones in the development of sharia economy in Indonesia is the operation of Bank Muamalat Indonesia (BMI) in 1992. Sharia banking is increasingly prevalent after the issuance of Law No. 10/1998 which enables banks to run dual banking system or conventional banks to establish sharia divisions. On this stand, the conventional banks began to take advantage and open sharia business units. No wonder if the development of sharia banking is quite rapid. The main factor that supports the development of sharia economy in Indonesia in the future is the population of Indonesia which is predominantly Muslim. In addition there is increasing awareness of Muslims in investing in accordance with sharia. Given the importance of investment as one of the economic behaviors, it is also important to understand the theory and practice of investment.

Does gender diversity in supervisory boards affect gender diversity in management boards in Germany? An empirical analysis

2021 ◽  
pp. 239700222199714
Author(s):  
Dennis Fleischer
Keyword(s):  
Fixed Effects ◽  
Structural Equation ◽  
Gender Diversity ◽  
Supervisory Board ◽  
Board Members ◽  
Governance System ◽  
Management Board ◽  
Supervisory Boards ◽  
Gender Quota ◽  
The Impact

Social aspects like gender diversity in the boardroom are becoming increasingly relevant and are a popular topic of public debate in the context of gender equality in business. However, there is little clarity about the potential spill-over effects of gender diversity. Both theory and empirical results have led to ambiguous conclusions with respect to the effect of gender diversity in the supervisory board on gender diversity in the management board. In addition, it is not clear whether the German gender quota legislation positively affects this relationship. This study analyses whether gender diversity in the supervisory board supports the gender diversity of the management board, and whether this relationship is affected by the gender quota legislation, focusing on the unique case of Germany. To cope with endogeneity concerns, this study employs a cross-lagged panel model with fixed effects using maximum likelihood structural equation modelling. The results of the analysis of the impact of the number of female supervisory board members on the number of female management board members do not support the view of positive spill-over effects of gender diversity in the environment of the German two-tier corporate governance system. Furthermore, this study finds no evidence of an effect of the German gender quota on this relationship. JEL Codes G38, M12, M14, M51

scholarly journals The Mechanism of Corporate Governance, Financial Performance, and Social Performance in Baitul Maal Wat Tamwil (BMT)

2020 ◽  
Vol 3 (1) ◽  
pp. 1-17
Author(s):  
Hasan Mukhibad ◽  
Akhmad Nurkhin
Keyword(s):  
Financial Performance ◽  
Significant Influence ◽  
Social Performance ◽  
Supervisory Board ◽  
Equation Model ◽  
Education Level ◽  
Structure Equation Model ◽  
Supervisory Boards ◽  
Observation Period

This study aimed to empirically prove the influence of the number and education level of managers, supervisory boards, Sharia Supervisory Board (SSB) and the attendance of Baitul Maal wat Tamwil (BMT) members (owners) in annual member meeting towards on profitability (ROA and ROE), and social performance (zakat performance). The research sample was BMT in Semarang Regency selected by purposive sampling method with an observation period from 2013 to 2017. Data analysis used the Structure Equation Model with the WarpPLS tool. The results showed that the number and education level of managers did not influence financial performance. The education level of the supervisory board had a significant influence on financial and social performance. The number and the education level of SSB changed financial performance, but the education level of SSB did not affect social performance. The Attendance of BMT members at the annual member meeting did not have a significant influence on BMT's financial and social performance improvement. These results indicated the minimal role of members in evaluating BMT performance, both profitability and social performance.

scholarly journals Pola dan Perkembangan Perbankan Syariah di Indonesia

2019 ◽  
Vol 3 (1) ◽  
pp. 34-41
Author(s):  
Ahmad Khoirin Andi
Keyword(s):  
Financial Institutions ◽  
Banking System ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Islamic Banks

The development of Islamic banking in Indonesia with the complexity of the problem in its journey has shown good results and as a reference for the pattern and strategy for developing financial institutions. Islamic banking with its (the) sharia principles of avoiding usury practices and prioritizing mutual benefits have proven to be a complete banking system. But besides that, additional supervision is needed to ensure the implementation of sharia principles, namely by the existence of a sharia supervisory board (DPS) to implement fatwas as guidelines for the operation of Islamic banks issued by the National Sharia Council (DSN).

scholarly journals International Experts’ Influence on Company Internationalization

2021 ◽  
Vol 29 (4) ◽  
Author(s):  
Grygorii Kravchenko
Keyword(s):  
Stock Exchange ◽  
Random Effect ◽  
Supervisory Board ◽  
Generalized Least Squares ◽  
Foreign Ownership ◽  
Company Performance ◽  
Least Squares Regression ◽  
Foreign Markets ◽  
Supervisory Boards ◽  
International Experts

Purpose: The article evaluates the associative relationship between international supervisory board experts and foreign ownership, along with the experts’ influence on the financial and operating performance of firms. The study was based on data collected for 257 companies listed on the Warsaw Stock Exchange in 2010–2015. Methodology: The dataset was built as a panel, and then generalized least squares regression models with a fixed or random effect were employed to test hypotheses. Findings: The findings of the study clearly show that the presence of investigated firms in foreign markets positively affects company performance. Moreover, models with dependent variables ROA and ROS show that supervisory board members with foreign experience positively affect profitability indicators of firms that do not operate on foreign markets. The data analyses reveal that international experts are more effective advisors for companies that conduct no business activities on foreign markets. Furthermore, the results show a positive moderate association between the share of international experts in supervisory boards and the share of foreign ownership in the company. Originality: The article contributes to the understanding of determinants and consequences of the presence of international experts in supervisory boards and company internationalization.

PROSPECTS OF ISLAMIC BANKING: REFLECTIONS FROM PAKISTAN

2011 ◽  
Vol 01 (02) ◽  
pp. 125-134
Author(s):  
Muhammad Akram ◽  
Mamoona Rafique ◽  
Hassan Mobeen Alam
Keyword(s):  
Growth Parameters ◽  
Banking System ◽  
Basic Knowledge ◽  
Islamic Banking ◽  
Muslim Country ◽  
Banking Services ◽  
And Performance ◽  
Corporate Social ◽  
Near Future

This study examines the growth and development phases as well as prospects of Islamic banking in Pakistan. The role of Islamic banking is explained with special regards to corporate social responsibility (CSR) as now days this concept is growing vastly. Awareness in public also has been growing and people are moving towards Islamic banking system. As we live in a Muslim country so it is very essential to have some basic knowledge about the Islamic banking. In this paper growth and performance of Islamic banking is discussed and compared among the financial years from 2003 to 2010 in terms of growth parameters like assets, deposits, sources and uses of funds. The performance indicators are also discussed to evaluate the growth and performance of Islamic banking system. In the last eight years, Islamic banking paved with the rapid market share of banking services. Moreover the efforts made by the central bank in Pakistan (SBP) are also remarkable in growth of Islamic banking. By seeing the present growth of Islamic banking, it is anticipated that in near future, Islamic banking with get major share in banking industry in Pakistan.

Auswirkungen von Mehrfachmandaten deutscher Vorstands- und Aufsichtsratsvorsitzender auf den Unternehmenserfolg / The Impact of Multiple Board Memberships of CEOs and Chairmen of Supervisory Boards on Corporate Performance in Germany

2010 ◽  
Vol 230 (5) ◽  
Author(s):  
Benjamin Balsmeier ◽  
Achim Buchwald ◽  
Heiko Peters
Keyword(s):  
Panel Data ◽  
Corporate Performance ◽  
Supervisory Board ◽  
Data Set ◽  
Supervisory Boards ◽  
External Management ◽  
The Impact ◽  
Public Criticism

SummaryMembers of management boards as well as supervisory boards often attract public criticism when they are simultaneously active in several other boards. We use a panel data set of the biggest German corporations for the period from 1996-2006 to estimate the impact of multiple board memberships of the CEO and the chairman of the supervisory board on corporate performance. The results suggest a positive and inverse U-shaped relation between the number of external supervisory board seats of the CEO and corporate performance. Chairmen of supervisory boards who simultaneously serve on external management boards tend to improve the performance of the controlled firm. Further external supervisory board seats of the chairman of a supervisory board do not seem to have any influence on corporate performance, though.

Die öffentliche Funktion des Prüfungsausschusses

2019 ◽  
Author(s):  
Nora Schaffer
Keyword(s):  
Financial Reporting ◽  
Public Interest ◽  
Audit Committee ◽  
Supervisory Board ◽  
Balance Of Power ◽  
Audit Committees ◽  
State Supervision ◽  
Government Supervision ◽  
Supervisory Boards

The audit committee of public interest entities performs a public function through its auditing of financial reporting, which can be broadly broken down into three facets: (i) its role of relieving the burden on the state by supplementing or replacing government supervision, (ii) its role as guarantor of the capital market’s confidence and (iii) its role as guarantor of an audit and thus as the ‘guarantor of the guarantor’. This public function is emphasised by the recent introduction of hitherto non-systemic state supervision of supervisory boards and audit committees. This supervision is, however, to be viewed critically as it could result in the beginnings of ‘stock authorities’. This study examines how the aforementioned public function radiates to the other supervisory bodies in companies, namely the auditor and the supervisory board. It also examines the dangers which European strengthening of audit committees pose to corporate governance based on the dualistic system and to the balance of power in public limited companies.

Supervisory board process: Evidence from French public hospitals

2018 ◽  
Vol 31 (3) ◽  
pp. 163-177 ◽  
Author(s):  
Radhoine Laouer
Keyword(s):  
Decision Making ◽  
Public Hospital ◽  
Supervisory Board ◽  
Public Hospitals ◽  
Board Structure ◽  
The Public ◽  
The Social ◽  
Supervisory Boards ◽  
Relationship Of ◽  
Use Of Knowledge

We mobilize theories of corporate governance and the theory of the social psychology of decision-making small groups to understand the operational process of the public hospital supervisory board. More precisely, we empirically test the mediation relationship of the decision-making process (effort norms, use of knowledge and skills, and conflict cognitive) between its structure (size, the composition, and diversity) and the performance of its roles (strategy, control, and service). A total of 320 questionnaires coming from members of the French public hospital supervisory board were collected. The aggregation of these individual answers generates a sample of 159 public hospital supervisory boards. The results of the tests of the assumptions of the research model confirm the fact that the structure of the supervisory board does not influence the performance of its roles. However, supervisory board effort norms positively affect the performance of its roles positively. Only effort norms and the use of knowledge and the skills partially play the role of mediator between the supervisory board structure and the performance of its roles. Practical and theoretical implications are exposed in the discussion.

scholarly journals Classical and modern concepts of corporate governance (Stewardship Theory and Agency Theory)

Management ◽  
2015 ◽  
Vol 19 (2) ◽  
pp. 84-92 ◽  
Author(s):  
Beata Glinkowska ◽  
Bogusław Kaczmarek
Keyword(s):  
Corporate Governance ◽  
Agency Theory ◽  
Supervisory Board ◽  
Stewardship Theory ◽  
Social Meaning ◽  
Modern Approach ◽  
Management Board ◽  
Governance Systems ◽  
Supervisory Boards ◽  
A Company

Summary The main issues in efficiency of a company as an organisation are relations between the Supervisory Board and the Management Board of a company, and the methods of functioning of Supervisory Boards in governance systems of a company. The classical and modern approach to the role, place, and importance of corporate governance presented in this article, is yet another prompt to continue searching for the optimum in the organisational, economical, and social meaning.

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