IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Impact of Islamic and Conventional Corporate Governance Mechanisms on Financial Performance of Islamic Banks: Evidence from Malaysia

Impact of Islamic and Conventional Corporate Governance Mechanisms on Financial Performance of Islamic Banks: Evidence from Malaysia
View Sample PDF
Author(s): Jamel Eddine Mkadmi (University of Gafsa, Tunisia)and Khamoussi Halioui (Imam Mohammad Ibn Saud Islamic University, Saudi Arabia)
Copyright: 2016
Pages: 18
Source title: Ethical and Social Perspectives on Global Business Interaction in Emerging Markets
Source Author(s)/Editor(s): Minwir Al-Shammari (University of Bahrain, Bahrain)and Hatem Masri (University of Bahrain, Bahrain)
DOI: 10.4018/978-1-4666-9864-2.ch011

Purchase


Abstract

This study aims to analyze the effects of Islamic and conventional corporate governance mechanisms on financial performance. Six hypotheses have been developed and tested on 17 Malaysian Islamic banks observed over 7 years from 2005 to 2011. The measures used for financial performance were ROA; ROE and Operating Ratio (COSR). Using an econometric panel data, the results show that two among three conventional corporate governance mechanisms have significant effects on financial performance: the size of the board of director (SBD) and the degree of independence of the Board (INDEP); Whereas concerning the impact of the three other Islamic corporate governance mechanisms; our results show that only the visibility of supervisors is negatively as well as significantly related to financial performance. Regarding the relevance of control variables, two among three are relevant and positively related to financial performance (the age and the debt of the bank ratio.

Related Content

N. L. Swathi, Achukutla Kumar. © 2024. 17 pages.
Gurwinder Singh, Anshika Thakur. © 2024. 21 pages.
Ashok Singh Gaur, Hari Om Sharan, Rajeev Kumar. © 2024. 16 pages.
Sabyasachi Pramanik. © 2024. 17 pages.
Geetha Manoharan, Abdul Razak, C. V. Guru Rao, Sunitha Purushottam Ashtikar, M. Nivedha. © 2024. 28 pages.
Roop Kamal, Manpreet Kaur, Jaspreet Kaur, Shivani Malhan. © 2024. 10 pages.
Anu Sharma. © 2024. 8 pages.
Body Bottom