Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision

Orobah Ali Barghouthi; Mohammed Bayyoud

doi:doi:10.11648/j.ijfbr.20160203.16

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Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision

Orobah Ali Barghouthi, Mohammed Bayyoud

Published in International Journal of Finance and Banking Research (Volume 2, Issue 3)

Received: 23 January 2016 Accepted: 17 May 2016 Published: 30 June 2016

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Abstract

This paper examines corporate governance (CG) characteristics and relates them to earnings management (EM) behaviours in the context of a large emerging sector, Islamic banking industry. Main differences are found with regard to philosophical aspects, including objectives of the bank, natures of contract involved, key players in theCG practice as well as the relationships between the players. We verified that these aspects provide strong justification for an additional layer in the CG of an Islamic bank being the Shari'ah Supervisory Board (SSB). The mechanism and tools for the effective implementation of CG are relatively the same as the conventional system.

Published in	International Journal of Finance and Banking Research (Volume 2, Issue 3)
DOI	10.11648/j.ijfbr.20160203.16
Page(s)	116-120
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Corporate Governance, Islamic Bank, Management and Supervision

References

[1]	Abdul Muthalib, UnvarRahman (2002), "The effect of religion on earnings management and capital structure:Evidence from Muslim and Non-Muslim Managed Firms In Malaysia", Phd Thesis, School of Accountancy,College of Business, Massey University.
[2]	Benamraoui A. (2008), "Islamic banking: the case of Algeria International", Journal of Islamic and Middle Eastern Finance and Management 1(2), 113-131.
[3]	Chapra, M. U. (2004), “Comments on Stakeholders Model of Governance in Islamic Economic System”, Islamic Economic Studies 11(2), 65-69.
[4]	Chapra, M. U. and Ahmed, H. (2002), Corporate Governance in Islamic Financial Institution. Jeddah: IDB/IRTI.
[5]	Cornett M. M., McNut J: J: John J. and Tehranian H. (2006), "Earnings management at large U.S. bank holding companies", Seminar at Boston College, Southern Illinois University, and Rutgers University – Camden
[6]	Haniffa, R.M. (2001), "Social Responsibility disclosure: An Islamic perspective", University of Exeter Working paper 01/04 ISSN 1473-2904.
[7]	Haniffa, R.M. (2002), "Social Responsibility disclosure: An Islamic perspective", Indonesian Management and Accounting Research Journal 1(2)
[8]	Menon, K. and D. D. Williams, (2004), "Former audit partners and abnormal accruals", The Accounting Review 79(4), 1095-1118.
[9]	Mills, P.S. and Presley, J.R. (1999), Islamic Finance: Theory and Practice, Macmillan, Basingstoke.
[10]	Shaffaii, S (2008), "Shari’a Governance - The real nexus for comprehensive Islamic financial regulatory and supervisory infrastructure", Available from (http://www.isegs.com/forum/showthread).

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APA Style

Orobah Ali Barghouthi, Mohammed Bayyoud. (2016). Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision. International Journal of Finance and Banking Research, 2(3), 116-120. https://doi.org/10.11648/j.ijfbr.20160203.16

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ACS Style

Orobah Ali Barghouthi; Mohammed Bayyoud. Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision. Int. J. Finance Bank. Res. 2016, 2(3), 116-120. doi: 10.11648/j.ijfbr.20160203.16

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AMA Style

Orobah Ali Barghouthi, Mohammed Bayyoud. Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision. Int J Finance Bank Res. 2016;2(3):116-120. doi: 10.11648/j.ijfbr.20160203.16

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@article{10.11648/j.ijfbr.20160203.16,
  author = {Orobah Ali Barghouthi and Mohammed Bayyoud},
  title = {Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision},
  journal = {International Journal of Finance and Banking Research},
  volume = {2},
  number = {3},
  pages = {116-120},
  doi = {10.11648/j.ijfbr.20160203.16},
  url = {https://doi.org/10.11648/j.ijfbr.20160203.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20160203.16},
  abstract = {This paper examines corporate governance (CG) characteristics and relates them to earnings management (EM) behaviours in the context of a large emerging sector, Islamic banking industry. Main differences are found with regard to philosophical aspects, including objectives of the bank, natures of contract involved, key players in theCG practice as well as the relationships between the players. We verified that these aspects provide strong justification for an additional layer in the CG of an Islamic bank being the Shari'ah Supervisory Board (SSB). The mechanism and tools for the effective implementation of CG are relatively the same as the conventional system.},
 year = {2016}
}

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TY  - JOUR
T1  - Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision
AU  - Orobah Ali Barghouthi
AU  - Mohammed Bayyoud
Y1  - 2016/06/30
PY  - 2016
N1  - https://doi.org/10.11648/j.ijfbr.20160203.16
DO  - 10.11648/j.ijfbr.20160203.16
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JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
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PB  - Science Publishing Group
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UR  - https://doi.org/10.11648/j.ijfbr.20160203.16
AB  - This paper examines corporate governance (CG) characteristics and relates them to earnings management (EM) behaviours in the context of a large emerging sector, Islamic banking industry. Main differences are found with regard to philosophical aspects, including objectives of the bank, natures of contract involved, key players in theCG practice as well as the relationships between the players. We verified that these aspects provide strong justification for an additional layer in the CG of an Islamic bank being the Shari'ah Supervisory Board (SSB). The mechanism and tools for the effective implementation of CG are relatively the same as the conventional system.
VL  - 2
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Author Information

Orobah Ali Barghouthi

Faculty of Business and Economics, Department of Banking & Finance, Alquds University, Abu Dis, Palestine
Mohammed Bayyoud

Faculty of Business and Economics, Department of Banking & Finance, Alquds University, Abu Dis, Palestine

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APA Style

Orobah Ali Barghouthi, Mohammed Bayyoud. (2016). Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision. International Journal of Finance and Banking Research, 2(3), 116-120. https://doi.org/10.11648/j.ijfbr.20160203.16

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ACS Style

Orobah Ali Barghouthi; Mohammed Bayyoud. Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision. Int. J. Finance Bank. Res. 2016, 2(3), 116-120. doi: 10.11648/j.ijfbr.20160203.16

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AMA Style

Orobah Ali Barghouthi, Mohammed Bayyoud. Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision. Int J Finance Bank Res. 2016;2(3):116-120. doi: 10.11648/j.ijfbr.20160203.16

Copy | Download

@article{10.11648/j.ijfbr.20160203.16,
  author = {Orobah Ali Barghouthi and Mohammed Bayyoud},
  title = {Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision},
  journal = {International Journal of Finance and Banking Research},
  volume = {2},
  number = {3},
  pages = {116-120},
  doi = {10.11648/j.ijfbr.20160203.16},
  url = {https://doi.org/10.11648/j.ijfbr.20160203.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijfbr.20160203.16},
  abstract = {This paper examines corporate governance (CG) characteristics and relates them to earnings management (EM) behaviours in the context of a large emerging sector, Islamic banking industry. Main differences are found with regard to philosophical aspects, including objectives of the bank, natures of contract involved, key players in theCG practice as well as the relationships between the players. We verified that these aspects provide strong justification for an additional layer in the CG of an Islamic bank being the Shari'ah Supervisory Board (SSB). The mechanism and tools for the effective implementation of CG are relatively the same as the conventional system.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Corporate Governance System and Its Role in Activating Islamic Bank’s Management and Supervision
AU  - Orobah Ali Barghouthi
AU  - Mohammed Bayyoud
Y1  - 2016/06/30
PY  - 2016
N1  - https://doi.org/10.11648/j.ijfbr.20160203.16
DO  - 10.11648/j.ijfbr.20160203.16
T2  - International Journal of Finance and Banking Research
JF  - International Journal of Finance and Banking Research
JO  - International Journal of Finance and Banking Research
SP  - 116
EP  - 120
PB  - Science Publishing Group
SN  - 2472-2278
UR  - https://doi.org/10.11648/j.ijfbr.20160203.16
AB  - This paper examines corporate governance (CG) characteristics and relates them to earnings management (EM) behaviours in the context of a large emerging sector, Islamic banking industry. Main differences are found with regard to philosophical aspects, including objectives of the bank, natures of contract involved, key players in theCG practice as well as the relationships between the players. We verified that these aspects provide strong justification for an additional layer in the CG of an Islamic bank being the Shari'ah Supervisory Board (SSB). The mechanism and tools for the effective implementation of CG are relatively the same as the conventional system.
VL  - 2
IS  - 3
ER  -

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