Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions

Sheikh Obid, Siti Normala and Naysary, Babak (2014) Toward a comprehensive theoretical framework for Shariah governance in Islamic financial institutions. Journal of Financial Services Marketing, 19 (4). pp. 304-318. ISSN 1363-0539 E-ISSN 1479-1846

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Abstract

The purpose of this research is to develop a comprehensive theoretical framework for interpreting Shariah governance mechanism in Islamic financial institutions (IFIs). After reviewing existing theories that were used to explain the phenomenon of corporate governance, three most commonly used theories in the corporate governance and Shariah governance area namely agency theory, stewardship theory and stakeholder theory were used and integrated based on their interrelated concepts and their relationship with Shariah governance. The constructed theoretical framework includes five concepts, namely accountability, disclosure and transparency, competency, confidentiality and independency among the key functionaries in Shariah governance, which are perceived to be the principles of Shariah governance. This research is among the first attempts to build an integrated theoretical foundation for Shariah governance in IFIs and the developed theoretical framework can be used as the basis for interpretations and comparisons on the ideal versus practical situation of Shariah governance in IFIs.

Item Type:	Article (Journal)
Additional Information:	842/58540
Uncontrolled Keywords:	agency theory; Islamic banking; Islamic financial institutions; Shariah governance stakeholder theory stewardship theory
Subjects:	B Philosophy. Psychology. Religion > BP Islam. Bahaism. Theosophy, etc H Social Sciences > HG Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Assoc Prof Siti Normala Sheikh Obid
Date Deposited:	26 Sep 2017 14:37
Last Modified:	26 Sep 2017 14:37
URI:	http://irep.iium.edu.my/id/eprint/58540

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