The impact of Islamic Financial Services Board Standard No. 3 on corporate governance of listed firms in Kuwait

Samy Garas (), Abiot Tessema and Kienpin Tee
Additional contact information
Samy Garas: Zayed University College of Business
Abiot Tessema: Zayed University College of Business
Kienpin Tee: Zayed University College of Business

International Journal of Disclosure and Governance, 2017, vol. 14, issue 3, No 5, 263 pages

Abstract: Abstract This paper investigates whether corporate governance standard No. 3 that has been issued by Islamic Financial Services Board (IFSB-3) has improved corporate governance structure of firms listed in the Kuwait stock market. In addition, the paper investigates whether the influence of IFSB-3 on corporate governance varies between Islamic and conventional financial institutions. We test two hypotheses using a sample of firms listed in Kuwait stock exchange over a period of 2000–2013. Ordinary least square regression and fixed effects estimation techniques are applied to test the hypotheses. The findings reveal all corporate governance measures indicate that the corporate governance has improved after the issuance of IFSB-3. The results also reveal that the improvement in corporate governance after the implementation of IFSB-3 is higher for Islamic than for conventional financial institutions. This suggests that IFAB-3 is more important for Islamic than conventional institutions. Accordingly, we conclude that corporate governance guideline (IFAB-3) has improved the corporate governance structure of firms listed in the Kuwait stock market. In this context, the study increases the awareness of standard setters, academics, investors, regulators, and many other stakeholders about the effect of IFAB-3 in the region. Finally, our study fills evident gap in the literature by investigating the influence of corporate governance guideline (IFSB-3) on corporate governance structure in a unique setting that is often ignored by accounting scholars, which helps to widen our knowledge on accounting practices across the globe.

Keywords: IFSB; Corporate governance; Islamic Financial Institutions; Board of directors; Shari’a Supervisory Board; Kuwait (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41310-017-0024-9 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:14:y:2017:i:3:d:10.1057_s41310-017-0024-9

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

DOI: 10.1057/s41310-017-0024-9

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 ().