Corporate governance and credit rating in Islamic banks: Does Shariah governance matters?

Rihab Grassa

Journal of Management & Governance, 2016, vol. 20, issue 4, No 9, 875-906

Abstract: Abstract We investigate whether Islamic banks with strong corporate governance benefit from higher credit ratings relative to Islamic banks with weaker governance and whether Shariah governance can affect the credit ratings of Islamic banks or not. We document, after controlling for Islamic bank-specific risk characteristics, that credit ratings are negatively associated with the number of blockholders, CEO power, the supervisory role of the Shariah board and investment deposits; and positively associated with share listing ownership, board independence, women directors, board directors expertise and Shariah board expertise. As well as, credit rating is higher for Southeast Asian Islamic banks and weaker for GCC Islamic banks.

Keywords: Corporate governance; Credit rating; Shariah governance; Islamic banks; GCC countries; Southeast Asia countries (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://link.springer.com/10.1007/s10997-015-9322-4 Abstract (text/html)
Access to full text is restricted to subscribers.

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:kap:jmgtgv:v:20:y:2016:i:4:d:10.1007_s10997-015-9322-4

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/10997/PS2

DOI: 10.1007/s10997-015-9322-4

Access Statistics for this article

Journal of Management & Governance is currently edited by Lino Cinquini

More articles in Journal of Management & Governance from Springer, Accademia Italiana di Economia Aziendale (AIDEA) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().