scholarly journals Influence of Sharia Supervisory Board Characteristics on the Shariah Compliance

2018 ◽  
Author(s):  
Iwan Fakhruddin ◽  
Mohd Abdullah Jusoh
Keyword(s):  
Supervisory Board ◽  
Board Characteristics

scholarly journals The Interplay between Board Characteristics, Financial Performance, and Risk Management Disclosure in the Financial Services Sector: New Empirical Evidence from Europe

2021 ◽  
Vol 14 (2) ◽  
pp. 79
Author(s):  
Gratiela Georgiana Noja ◽  
Eleftherios Thalassinos ◽  
Mirela Cristea ◽  
Irina Maria Grecu
Keyword(s):  
Risk Management ◽  
Financial Performance ◽  
Financial Services ◽  
Structural Equation ◽  
Supervisory Board ◽  
Fiscal Year ◽  
Services Sector ◽  
Board Characteristics ◽  
Financial Services Sector ◽  
Thomson Reuters

This paper empirically evidences the role played by board characteristics (skills, diversity, structure, independence) in supporting risk management disclosure and shaping the financial performance of European companies operating in the financial services sector. We exploit data selected from Thomson Reuters Eikon database in 2020 for the last fiscal year 2019 (FY0) on a longitudinal sample of 144 companies with the head offices in Europe (25 countries). Following an original empirical approach based on two modern financial econometric techniques, namely structural equation modelling (SEM) and network analysis through Gaussian graphical models (GGMs), the research endeavor outlines the decisive importance of an optimal board size, enhanced management skills, upward gender diversity (encompassed by women participation on board management), and structure (mainly a two-tier type, one management board, and a distinctive supervisory board) as fundamentals of risk management strategies, leading to improved financial achievements and a higher profitability for the analyzed companies.

Can Shariah board characteristics influence risk-taking behavior of Islamic banks?

2019 ◽  
Vol 12 (4) ◽  
pp. 469-488 ◽  
Author(s):  
Amal AlAbbad ◽  
M. Kabir Hassan ◽  
Irum Saba
Keyword(s):  
Risk Taking ◽  
Supervisory Board ◽  
Annual Reports ◽  
Islamic Banks ◽  
Content Type ◽  
Asset Return ◽  
Board Characteristics ◽  
The Relationship ◽  
Risk Taking Behaviors ◽  
Practical Implications

Purpose The purpose of this paper is to study whether the characteristics of the Shariah Supervisory Board (SSB) can influence the risk-taking behaviors of Islamic banks. Design/methodology/approach The data on governance were collected from 70 Islamic banks’ annual reports across 18 countries for the period from 2000 to 2011 to investigate the relationship between SSB’s characteristics including size, busyness and foreign board and the Islamic banks’ risk activities. Findings The size of SSB and the proportion of busy board in SSB positively and significantly influence Islamic banks’ asset return and insolvency risks. Foreign members are more effective in monitoring banks’ Shariah compliance. Further analysis provides some evidence that most of the findings on the associations between the SSB structure and bank risk are derived from countries in the Gulf Cooperation Council where Shariah governance is ruled internally at the bank level. Practical implications There is a need for better Shariah board characteristics in place that complement with other governance mechanisms to well comprehend the main purpose of Islamic banks. Originality/value SSB board busyness and foreign characteristics appear to influence the risk-taking behaviors of Islamic banks.

scholarly journals Pengaruh Karakteristik Dewan Pengawas Syari’ah dan Ukuran Dewan Komisaris terhadap Pengungkapan Islamic Social Reporting

2020 ◽  
Vol 2 (1) ◽  
pp. 25
Author(s):  
Firman Setiawan
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Annual Report ◽  
Supervisory Board ◽  
Education Level ◽  
Social Reporting ◽  
Board Size ◽  
Board Characteristics

This study aims to determine the effect of Shari'ah Supervisory Board Characteristics (DPS Size, DPS Education Level, and DPS Expertise) and Board of Commissioners Size on Islamic Social Reporting (ISR) Disclosure at Shari'ah Commercial Banks in 2018. Population in this study is a Sharia Commercial Bank in Indonesia in 2018. Data is obtained from the bank's annual report. The data is presented and analyzed quantitatively using multiple linear regression. Based on the analysis conducted, it is known that the Shari'ah Supervisory Board Size, Shari'ah Supervisory Board Education Level and the Shari'ah Supervisory Board Expertise partially have no significant effect on Islamic Social Reporting (ISR) Disclosure, while the Size of the Board of Commissioners has a significant effect on Islamic Social Reporting (ISR) Disclosures. Simultaneously, DPS Characteristics and Board of Commissioners Size significantly influence Islamic Social Reporting (ISR) Disclosure.

scholarly journals Pengaruh Karakteristik Dewan Pengawas Syariah Terhadap Tingkat Financial Soundness Bank Syariah di Indonesia Tahun 2015-2019

2021 ◽  
Vol 3 (2) ◽  
pp. 414-431
Author(s):  
Suci Oktamirza ◽  
Vanica Serly
Keyword(s):  
Supervisory Board ◽  
Total Sample ◽  
Islamic Banks ◽  
Z Score ◽  
Additional Test ◽  
Financial Service Authority ◽  
Board Size ◽  
Board Characteristics ◽  
Education Levels ◽  
Financial Soundness

This study aims to examine the effect of Shari’ah Supervisory Board characteristics on financial soundness of Islamic banks in Indonesia. This research was conducted by quantitavie method and used data of Islamic banks listed in Financial Service Authority of Indonesia (OJK) at 2015-2019. Total sample was 13 islamic banks for each period. This research used RGEC method as main and newest measurement financial soundness of Indonesian banks. This research also used CAMEL method and Z-Score method as a robustness or additional test. Characteristics of Shari’ah Supervisory Board in this research represented by board size, multi-position, board education levels and meeting frequency.The result of this this study conclude that board size only affects financial soundness of Islamic banks from GCG mechanism and Cash Adequacy Ratio aspects. And multi positions of board will affects financial soundness of Islamic banks from Non Performing Financing, Return On Assets and Operational Expense Toward Operational Income aspects. While, board education levels didn’t have any significant impact on financial soundness of Indonesian Islamic banks in every aspects of RGEC method. And the meeting frequency only affects financial soundness of Indonesian Islamic banks from Operational Expense Toward Operational Income aspects. CAMEL method as the first robustness test showed that all of Shariah Supervisory Board characteristics didn’t have any significant impact on financial soundness of Indonesian Islamic banks while, the Z-Score as the second additional test found that only multi position which was give a significant impact on financial soundness of Indonesian Islamic banks.

scholarly journals Board characteristics and earnings forecasts accuracy in IPO prospectuses

2019 ◽  
Vol 55 (1) ◽  
pp. 25-39
Author(s):  
Tomasz Sosnowski ◽  
Anna Wawryszuk-Misztal
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Supervisory Board ◽  
Earnings Forecasts ◽  
Ordinary Least Squares ◽  
Board Characteristics ◽  
Management Board ◽  
Warsaw Stock Exchange ◽  
Public Offering

AbstractUsing a sample of 104 companies that conducted initial public offering (IPO) on the Warsaw Stock Exchange between 2006 and 2016, we investigated the relationship between the accuracy and bias of the earnings forecast disclosed in the IPO prospectus and the firm corporate governance attributes. Applying multiple Ordinary Least Squares (OLS) regressions models, we focused on the role of the board size, the percentage of women on the board, the board age diversity measure, and the proportion of shares owned by the members of the board. Generally, our findings show that some characteristics of management and supervisory board improve the usefulness of earnings forecasts’ credibility. Especially, a more diversified board in terms of age and higher management ownership results in more accurate forecasts. This is the first study giving an insight into the role of supervisory and management board characteristics on precision of earnings forecasts revealed in the prospectus by Polish IPO companies.

scholarly journals Determinants of Voluntary International Financial Reporting Standards Adoption in Poland

2020 ◽  
Vol 31 (2) ◽  
pp. 155-168
Author(s):  
Marcin Kędzior ◽  
Malgorzata Cyganska ◽  
Dimitrios Syrrakos
Keyword(s):  
Financial Reporting ◽  
Relevant Literature ◽  
Supervisory Board ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Board Characteristics ◽  
Financial Reporting Standards ◽  
Ifrs Adoption ◽  
International Investors ◽  
The Impact

The paper examines the determinants of voluntary International Financial Reporting Standards (IFRS) adoption in Poland. In doing so, it empirically confirms the impact of diverse CEO and supervisory board characteristics on voluntary IFRS adoption. The paper focuses on  446 publicly traded production companies from Poland. The analysis is based on logistic regression analysis. The empirical investigation  confirms the impact on voluntary IFRS adoption of such factors as company size, international investors, international supervisory board, number of supervisory board members, CEO nationality. The paper  contributes to the assessment of  voluntary IFRS adoption determinants, by presenting for the first time CEO and supervisory board characteristics and their impact on voluntary International Financial Reporting Standards (IFRS) adoption, and the determinants of IFRS adoption from Central and Eastern Europe. The paper enhances  existing knowledge of voluntary IFRS adoption by incorporating  new CEO and supervisory board characteristics, thus closing a gap in the relevant literature. The results of the paper are significant from the supervisor’s perspective, the quality of financial statements and the effectiveness of corporate governance systems.

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