Does the board of directors influence Shariah governance in Islamic banks?

Md Safiullah, Mohammad Dulal Miah, Asm Sohel Azad and M. Kabir Hassan

Pacific-Basin Finance Journal, 2024, vol. 85, issue C

Abstract: This paper examines whether and how the board of directors influences Shariah board governance in Islamic banks. We use data from 54 Islamic banks from 10 countries where Islamic banks are systemically important from 2003 to 2019. The results show that the board of directors positively impacted Shariah governance. Our findings remain robust after using the dynamic panel GMM estimator and propensity score matching techniques as alternative estimation methods. We further document that the impact of the board of directors on Shariah board governance is more pronounced in large banks, publicly traded banks, and countries with better national governance.

Keywords: Board of directors; Shariah governance; Islamic banks; Agency relation; National governance (search for similar items in EconPapers)
JEL-codes: G28 G34 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:85:y:2024:i:c:s0927538x24000970

DOI: 10.1016/j.pacfin.2024.102346

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