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Shariah Board governance, IFSA 2013 and Islamic banks’ performance

Haron, Razali and Radzali, Nur Ermiedza (2020) Shariah Board governance, IFSA 2013 and Islamic banks’ performance. In: 8th ASEAN Universities International Conference on Islamic Finance (8th AICIF) 2020, 24th-26th November 2020, Bogor, Indonesia. (Unpublished)

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This study examines the impact of Shariah Board (SB) characteristics and BOD structure on the performance of Islamic banks in Malaysia based on three performance measurements: Zakat on Equity (ZOE), Return on Asset (ROA) and Return on Equity (ROE). This study covers 15 Islamic banks in Malaysia for a study period from 2010 to 2018 consisting of the pre and post implementation of the Islamic Financial Services Act (IFSA) 2013. General Method of Moments (system-GMM) is employed to determine the impact of SB characteristics and BOD structure on the performance of Islamic banks. This study provides evidence that SB education, SB reputation and SB expertise are positively related to Islamic banks’ performance while SB remuneration, SB cross membership, Board size and Board independence are negatively related. It was also discovered that IFSA (2013) is negatively related to ROE despite the arguments that the Act has strengthened Shariah governance framework in Malaysia.

Item Type: Conference or Workshop Item (Plenary Papers)
Additional Information: 4581/85452 Presented via Zoom
Uncontrolled Keywords: Shariah Governance, banks, Islamic, Malaysia, performance, IFSA 2013
Subjects: H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Institute of Islamic Banking & Finance (IIiBF)
Depositing User: Dr. Razali Haron
Date Deposited: 03 Dec 2020 21:21
Last Modified: 15 Dec 2020 15:28
URI: http://irep.iium.edu.my/id/eprint/85452

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