Pdf corporate governance in islamic perspective ahmad. The paper intends to discuss the concepts, framework, structure of fraud, and its two contending theories i. Major features of good governance can be precised under seven fundamentals. While some of the principles may be more appropriate for larger than for smaller companies, poli cymakers may wish to raise awareness of good corporate governance for all co mpanies, including smaller and unlisted companies. Islamic perspectives on profit maximization, journal business ethics 117, 467y475. T, which if properly implemented and giving a sound attention, the issue of fraud in. This report summarizes the experiences of 19 companies from across the region. Pdf corporate governance from an islamic perspective. Lewis examine, from an islamic perspective, some central issues in public, economic and corporate governance. Corporate governance is a broad term defines the methods, structure and the processes of a company in which the business and affairs of the company managed and directed. The islamic perspective to governance and leadership is interesting, not because it is new, but because it worked in the past. Corporate governance an introduction to islamic finance. The basic theory of corporate governance in islamic. It first points out the importance of corporate governance for iifs, where it would require a distinct treatment from conventional corporate governance and highlights three cases of distress of iifs.
Strong corporate governance, a critical element of business leadership, is important in any industry. This paper, therefore, compares the corporate governance concepts in the conventional and the islamic perspective. Covering everything from basic transaction analysis to the preparation. The researcher referred the principles of corporate governance oced2004, for the purpose of this study. Sep 23, 2014 corporate governance from the islamic perspective corporate governance from the islamic perspective alkahtani, faleh salem 20140923 00. Section 4 discusses the islamic perspective of corporate governance and its comparison with oecd principles and the last section gives the conclusion of the study.
Pdf an islamic perspective on governance new horizons in money and finance read. Your introduction to islamic accounting principles of islamic accounting is the first and only text that covers the fundamentals of islamic accounting in english. Corporate governance success stories english abstract. Most this research used the theoretical approach given in conventional corporate governance and provide additional tahwid concept. Pdf corporate governance from the islamic perspective. A concept of corporate governance from islamic perspective does not differ much with the conventional definition as it refers to a system by which companies are. Lots of people stand to lose money if the company fails. A conceptual study on islamic corporate governance model in. The discussion begins with various theories that underlie the concept of governance and empirical research in the application of governance.
A comprehensive guide, this groundbreaking reference offers both insight into islamic accounting best practices and disclosure for shariahcompliant instruments. I, hani saker alagha declare that the dba thesis entitled corporate governance practices and firm performance of listed companies including islamic financial institutions in the united arab emirates is no more than 100,000 words in length, exclusive of tables, figures, appendices, references and footnotes. Apr 18, 2010 good governance an islamic perspective 1. Mar 29, 2015 islamic view of good governance is qualitative and not mechanical. Islamic corporate governance model in islam has its own unique. Corporate governance in islamic perspective emerald insight. The model of good governance in islam article pdf available in african journal of business management 52718 sep 2011. Differences and similaritites between corporate governance. The role of corporate governance in islamic financial.
Introduction to corporate governance from islamic perspective. Amongst topics analysed are theories of justice, taxation, budget deficits, islamic financing modes, public and private accountability, and corruption. Corporate governance corporate governance characteristics albeit playing different roles in ensuring compa. But the corporate governance of islamic financial institutions is especially important for these reasons. Anis is meritorious professor and vice chancellor, riphah international university, islamabad. Corporate governance practices and firm performance of listed. Oct 02, 2010 consequently, in practice, most of islamic companies use the conventional corporate governance standard which may not be consistent with the islamic values. Corporate governance in banking has been analyzed very extensively in the context of conventional banking markets. Corporate governance from the islamic perspective, arab law. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Cbn 2006 reported that despite the significance of good corporate governance to national economic development and growth, corporate governance was still at rudimentary stage as only 40% of publicly quoted companies, including banks had recognised corporate governance in place. Since corporate governance in islamic banks is a social phenomenon in islamic societies, the paper uses social theory paradigms functionalist, interpretive, radical humanist and radical structuralist to compare between corporate governance in islamic banks and conventional banks.
This publication takes stock of how soes and those exercising the states ownership role address the issue of risk management from the perspective of corporate governance risk governance, as recommended in the oecd guidelines on corporate. Article information, pdf download for religion and csr. Corporate governance success stories english the world bank. Corporate governance in islamic perspective, corporate. Good corporate governance and organisational performance. The paper also intends to analyse the concept of islamic corporate governance, its theories and the popular theory of shariah enterprise theory s. Financial institutions deal with huge amounts of money collected from lots of investors and depositors. The basic theory of corporate governance in islamic perspective. Mar 01, 2006 corporate governance in islamic perspective masudul alam choudhury. Islamic corporate governance model in islam has its own unique features and presents distinctive characteristics in comparison with the western concept of the anglosaxon and the european models. Toward a comprehensive theoretical framework for shariah governance in.
A comparison between corporate governance and corporate. Islamic corporate governance model in islam has its own unique features and presents distinctive characteristics in comparison with the western concept of. A comparison between corporate governance and corporate governance in islamic perspective, international journal of academic research in business and social sciences, human resource management academic research society, international journal of academic research in business and social sciences, vol. This paper attempts to give a brief overview of existing shariah governance framework in malaysia, compare with aaoifi and ifsb standards and guidelines, identify current issues, and recommend measures to improve existing practices. This study describes a radically different approach focusing the similarities and differences of conventional corporate governance from the islamic perspective. Asyraf wajdi dusuki abstract sound corporate governance practices have become essential for efficient, viable and sustainable growth of islamic financial institutions. Recent studies that discuss governance in islamic perspective have been done by various islamic researcher including abutapanjeh 2008, hassan 2009, haweez 20, etc. Corporate governance and leadership from an islamic perspective.
The theory and empirical research become the necessary foundation to understand the perspective of governance in islamic banks. All eight chapters are riveting, each bringing out the various dimensions of a flourishing islamic corporate sphere. Keywords malaysia, banking, islam, corporate governance, shariah board. Pdf corporate governance from the islamic perspective faleh al. The difference rooted from the fact the islamic perspective sees the corporate governance practice as muslims obligation to god, thus leads to the existence and obedient of the implicit. Sep 23, 2016 download corporate governance in islamic financial institutions kindle free. This chapter discusses governance in the context of islamic banking. By contrast, little is written on corporate governance from islamic perspective particularly the governance structures of islamic finance sector, despite its rapid growth since the mid 1970s and their. Oriented governance the significance of trust corporate. Corporate governance in islamic perspective semantic scholar. Governance issues of ifis lessons from the current financi. The impact of corporate governance on the performance of. Critical perspectives on accounting 20 2009 556567. Each of the case studies highlights the key corporate governance changes made and the positive impacts that resulted, as reported by the company.
Pacific affairs corporate islam is a muchneeded text on the contemporary engagement of economy with sharia and its demands and outcomes for both producers and consumers in the economy. Toward a comprehensive theoretical framework for shariah. The characteristics of corporate governance practices from the islamic perspective, such as board size, muslim chairman, muslim directors, and director with shariah background, were studied to determine their relationship with firm performance. Thus leadership faces two ways of tackling todays corporate governance problem.1474 853 827 698 442 21 1244 335 894 442 514 550 1120 1239 755 914 341 1059 691 972 1308 1159 406 1251 568 1448 859 1121