scholarly journals Financial Performance in Islamic Banking and Shari’ah Supervision under Interventionist Regulatory Approach: A System-GMM Dynamic Panel Analysis

10.26414/a095 ◽  
2021 ◽  
Vol 8 (1) ◽  
pp. 59-86
Author(s):  
Naji Mansour Nomran ◽  
Razali Haron
Keyword(s):  
Supervisory Board ◽  
Positive Association ◽  
Dynamic Panel ◽  
System Gmm ◽  
Regulatory Frameworks ◽  
Low Degree ◽  
Regulatory Approach ◽  
Dynamic Panel Analysis ◽  
And Performance ◽  
The Relationship

The relationship between Shari’ah supervision and Islamic banks’ (IBs) performance is still ambiguous particularly for banks across countries that have different regulatory environments. Pakistan adopts an interventionist regulatory approach which is exclusive to Shari’ah governance (SG) system in Pakistan. This approach differs from the other adopted approaches in countries that have either high or low degree of regulatory interference. Thus, this study examines how Shari’ah supervision mechanism, as represented by the Shari’ah supervisory board, and its characteristics, can influence the performance of IBs in Pakistan. The sample comprises 67 Islamic bank-year observations for the period from 2007 to 2015. The performance-governance relationship is estimated using a range of econometric techniques including the dynamic system-GMM estimator. The results reveal modest support for a positive association between Shari’ah supervision and performance. The study concludes that SG practices in the Pakistani IBs still suffer from some drawbacks which require more improvements by the respective regulators. Most of these drawbacks are related to the SG regulatory frameworks which are related to the SSBs’ roles and characteristics.

scholarly journals Connotation among Structure, Conduct, and Performance: A Panel Data Analysis of Selected Financial Firms in Pakistan

2017 ◽  
pp. 78-101
Author(s):  
Muhammad Jamil Et al.,
Keyword(s):  
Panel Data ◽  
Data Model ◽  
Panel Data Analysis ◽  
Positive Association ◽  
Dynamic Panel Data ◽  
Panel Data Models ◽  
Dynamic Panel ◽  
Financial Firms ◽  
And Performance ◽  
The Relationship

The study of Structure, Conduct, and Performance (SCP) paradigm is important to evaluate the performance of firms. The study scrutinizes the relationship among SCP paradigm of selected financial firms (Banks, Insurance, Modaraba and Exchange companies) in Pakistan. Panel data of 103 financial firms of Pakistan from 2007 to 2015 is employed for this purpose. Various models of panel data have been employed to find the more parsimonious one. It is concluded that there is positive association among SCP using panel data models and dynamic panel data model. It is recommended that all firms are needed to enhance their management regarding expenditures and they also need to increase the number of shareholders to boost the firm’s performance

Ethical values and bank performance: evidence from financial institutions in Malaysia

2020 ◽  
Vol 11 (1) ◽  
pp. 233-256
Author(s):  
Tuan Azma Fatiema Tuan Ibrahim ◽  
Hafiza Aishah Hashim ◽  
Akmalia Mohamad Ariff
Keyword(s):  
Banking Sector ◽  
Positive Association ◽  
Annual Reports ◽  
Bank Performance ◽  
Ethical Values ◽  
Return On Assets ◽  
Content Type ◽  
And Performance ◽  
The Relationship

Purpose The purpose of this study is to investigate the relationship between ethical values and performance in the context of the banking sector in Malaysia. Design/methodology/approach Based on the philanthropic model, this study posits that firms undertaking zakat and charity are ethical firms. Zakat disclosure index (ZDI) and charity disclosure index (CDI) were constructed to measure ethical values. This study hypothesises that ethical values are positively associated with bank performance. Ethical values (i.e. CDI and ZDI) and financial performance data (i.e. return on assets) were collected from the disclosures made in the annual reports of 50 banks for a period of five years (2010-2014). Findings A positive association was found between zakat disclosure and bank performance. The results indicate that higher zakat disclosure is associated with greater bank performance. However, no relationship was found between charity disclosure and bank performance. Research limitations/implications Considering the limitation of the index used in this study, other dimensions such as corporate governance, sustainability, products and environment can be considered in the development of index to measure ethical values in future studies. Originality/value This study offers additional explanation on the relationship between ethical values and performance by examining the role of zakat disclosures that characterize the unique aspects of Malaysian companies.

The impact of the top management teams’ knowledge and experience on strategic decisions and performance

2016 ◽  
Vol 23 (4) ◽  
pp. 504-523 ◽  
Author(s):  
Peng-Yu Li
Keyword(s):  
Positive Association ◽  
International Experience ◽  
Top Management Teams ◽  
Management Teams ◽  
Top Management ◽  
Strategic Decisions ◽  
Foreign Countries ◽  
And Performance ◽  
The Impact ◽  
The Relationship

AbstractThis paper explores whether top management teams’ (TMTs) knowledge and experience are significant predictors of a firm’s strategic decisions and organization outcomes. The existing research throws little light on how firms with limited resources embedded in TMTs, particularly in emerging markets, innovate and achieve success in foreign countries. We focus on the impact of TMTs’ functional background heterogeneity and international experience on innovation and internationalization, as well as examine the relationship between innovation, internationalization and performance. The proposed relationships are empirically investigated in a sample of Taiwanese-listed companies operating in the electronics industry. The results demonstrate a positive association between a TMT’s functional background heterogeneity and a firm’s innovation. Moreover, a TMT’s international experience relates positively to a firm’s innovation and internationalization, therefore firms with a higher level of innovation achieve a higher level of internationalization.

scholarly journals Work Engagement Among Public Employees: Antecedents and Consequences

2021 ◽  
Vol 12 ◽  
Author(s):  
Rushana Khusanova ◽  
Seung-Wan Kang ◽  
Suk Bong Choi
Keyword(s):  
Employee Engagement ◽  
Work Engagement ◽  
Positive Association ◽  
Public Organizations ◽  
Task Interdependence ◽  
Mediation Effect ◽  
Antecedents And Consequences ◽  
And Performance ◽  
The Relationship ◽  
Job Meaningfulness

This study is an investigation of the relationships among job meaningfulness, work engagement, and performance, including testing for a possible mediation effect of work engagement on the relationship between job meaningfulness and performance. We examine task interdependence as a boundary condition that facilitates employee engagement using two-stage multiple-source respondent data drawn from a sample of 183 Uzbek employees from public organizations and their 47 supervisors to test the hypotheses. The research findings confirm a positive association between job meaningfulness and engagement and the relationship between work engagement and performance. Mediation analysis using bootstrapping indicated that work engagement explained the influence of meaningfulness on performance. Furthermore, task interdependence negatively moderated the relationship between meaningfulness and engagement. This study responds to calls for researchers to identify the key and situational drivers of work engagement as well as examine the importance of meaningfulness in the public sector. It also increases the external validity of the findings by examining the relationship between engagement and performance in a non-Western context, namely, Islamic Uzbekistan. Despite the limitations of this research, the empirical findings contribute to the growing body of research on work engagement and meaningfulness in public organizations.

scholarly journals DIVERSITY MEASURES AND QUALITY OF BANKS’ BOARDS: THE ITALIAN CASE

2018 ◽  
Vol 06 (02) ◽  
pp. 1850009
Author(s):  
ROSSELLA LOCATELLI ◽  
CRISTIANA SCHENA ◽  
ALESSANDRA TANDA ◽  
ANDREA USELLI
Keyword(s):  
Methodological Approach ◽  
Positive Association ◽  
Improve Quality ◽  
Board Diversity ◽  
Italian Case ◽  
Qualitative Level ◽  
Regulatory Approach ◽  
Mutual Banks ◽  
The Relationship

Most of the studies in corporate governance in banks and other types of firms investigate board diversity and quality separately, without considering the possible relationship between these two. To fill this gap, this study investigates through a new methodological approach the level of quality and diversity of the boards of a sample of Italian banks using a proprietary hand-collected database; in addition, it examines the relationship between diversity and quality of boards to verify whether more diversity consistently relates to higher quality, in accordance with the regulatory approach. Evidence shows that especially small and mutual banks need to improve quality and diversity, as they probably suffer from their limited attractiveness to top profile directors. Moreover, on analyzing interrelations we find evidence of a positive association between board diversity and quality. In particular, financial skills and experience of directors improve the qualitative level of banking boards.

scholarly journals Assessing JIT Performance: An Econometric Approach

2008 ◽  
Vol 20 (s1) ◽  
pp. 47-59 ◽  
Author(s):  
Adam S. Maiga ◽  
Fred A. Jacobs
Keyword(s):  
Firm Performance ◽  
Unobserved Heterogeneity ◽  
Positive Association ◽  
Just In Time ◽  
Firm Characteristics ◽  
Significant Positive Association ◽  
And Performance ◽  
Econometric Analyses ◽  
Econometric Approach ◽  
The Relationship

ABSTRACT: This paper uses a sample of 131 just-in-time (JIT) firms and their matched non-JIT firms obtained from Kinney and Wempe with 1977–1995 Compustat data to assess whether the relationship between JIT adoption and firm performance is endogenous. Results indicate a significant positive association between JIT adoption and firm performance and strongly indicate that the decision to adopt JIT is endogenous. We also show that asset productivity, sales growth, and leverage, are important in explaining the effect of JIT adoption on performance and that firm characteristics are an important contributor to unobserved heterogeneity. Furthermore, the econometric analyses in the form of both Wooldridge 2SLS and Heckman approaches suggest that the underlying relationship between JIT adoption and performance is much stronger after controlling for endogeneity and self-selection bias and that OLS estimates are indeed biased.

Directors’ remuneration, governance and performance: the case of Malaysian banks

2015 ◽  
Vol 41 (1) ◽  
pp. 26-44 ◽  
Author(s):  
Siew Peng Lee ◽  
Mansor Isa
Keyword(s):  
Corporate Governance ◽  
Banking Sector ◽  
Positive Association ◽  
Multivariate Regression Analysis ◽  
Foreign Banks ◽  
Causality Test ◽  
Content Type ◽  
And Performance ◽  
Domestic Banks ◽  
The Relationship

Purpose – The purpose of this paper is to examine the association between directors’ remuneration and performance and corporate governance in the Malaysian banking sector, using panel data for 21 banks over the period 2003-2011. Design/methodology/approach – The authors use multivariate regression analysis to examine the relationship between directors’ remuneration and performance and corporate governance. The authors also run Granger causality test to determine the existence of causality between directors’ remuneration and performance. Findings – The authors find clear evidence of a positive association between directors’ remuneration and performance. Further, the causality test reveals that directors’ remuneration tends to Granger-cause performance. In terms of governance variables, the authors find that directors’ remuneration is positively related to the percentage of independent directors, and negatively related to board size, but unrelated to duality and percentage of director share ownership. The authors also find that remuneration is positively related to bank size and negatively related to capital ratio. The evidence also shows that foreign banks perform better than domestic banks despite the relatively lower pay received by their directors. Practical implications – The findings imply that high-quality directors, as implied by their remuneration packages, are a significant determinant of performance. Originality/value – The results of this study provide new evidence concerning the relationship between directors’ remuneration and performance in the banking sector in Malaysia.

Moderating role of Shariah committee quality on relationship between board of directors effectiveness and the performance of Malaysian Takaful

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Monther Eldaia ◽  
Mustafa Hanefah ◽  
Ainulashikin Marzuki
Keyword(s):  
Board Of Directors ◽  
Positive Association ◽  
Moderating Effect ◽  
Board Effectiveness ◽  
Content Type ◽  
And Performance ◽  
High Level ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this study is to examine the effect of Board of Directors Effectiveness (BODE) on the performance of Malaysian Takaful companies licensed by the Central Bank of Malaysia. In addition, the study investigates the moderating effect of Shariah Committee Quality (SCQ) on the relationship between BODE and companies’ performance. Design/methodology/approach This study uses a sample of 11 Malaysian Takaful companies during the period of 2010-2017. While BDE and SCQ are measured using indices, performance is proxied using ROA and ROE. A panel fixed effect regression analysis is used to test the impact of the BDE on the financial performance of Malaysian Takaful companies and the moderator role of SCQ. Findings The main finding of this study shows a positive association between BDE and performance. More specifically, boards with a high presence of independent, Muslim and female directors positively contribute to the performance of Malaysian Takaful companies. Another interesting finding is related to the positive moderating effect of SCQ on the relationship between BDE and performance. This result indicates that a high level of SCQ combined with a high level of board effectiveness improve performance. Practical implications The finding is of great importance to stakeholders and policymakers to improve their board effectiveness and the quality of the Shariah committee to reduce agency costs and to improve the performance of Malaysian Takaful companies. Originality/value This study adds to the prior literature by investigating for the first time the relationship between BDE and performance and the interaction effect of SCQ on the performance of Malaysian Takaful companies.

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