Internal governance and the sustainability development practice in Islamic financial institutions

Nourhen Sallemi ()
Additional contact information
Nourhen Sallemi: University of Sfax

International Journal of Disclosure and Governance, 2025, vol. 22, issue 1, No 10, 155-164

Abstract: Abstract This study examines the association between internal corporate governance (board size, outside directors, Shariah board size, and training of Shariah board members) and the sustainability practices of Islamic financial institutions (IFIs). The sample includes 59 IFIs listed in Africa, Europe, Asia, the Middle East, and North America over the period 2017–2021. We examine the relationship between internal corporate governance (board size, outside directors, Shariah board size, and training of Shariah board members) and sustainability practices using the ordinary least squares (OLS) method. Overall, our findings suggest that larger boards of directors and Shariah boards achieve greater sustainability. We also find a positive relationship between the training of Shariah board members and sustainability practices. Additionally, outside directors have an insignificant impact on sustainability practices. This study provides useful insights for managers and policymakers to better understand which internal governance mechanisms, especially board size, Shariah board size, and the training of Shariah board members, can best encourage a company to improve sustainable development practices.

Keywords: Sustainability practice; Islamic financial institutions; OLS; Internal corporate governance; G3; G22; F65 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41310-024-00246-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:ijodag:v:22:y:2025:i:1:d:10.1057_s41310-024-00246-3

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/41310

DOI: 10.1057/s41310-024-00246-3

Access Statistics for this article

International Journal of Disclosure and Governance is currently edited by Michael Alles

More articles in International Journal of Disclosure and Governance from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().