Mohammed, Sulaiman Abdullah Saif and Muhammed, Joriah (2017) The relationship between agency theory, stakeholder theory and Shariah supervisory board in Islamic banking. Humanomics, 33 (1). pp. 75-83. ISSN 0828-8666
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Abstract
Purpose: In relation to the critical problem, this paper aims to present an understanding of the agency theory and the stakeholder theory from the perspective of the Islamic principles.Indeed, a thorough examination of the theoretical background explaining corporate governance from the Islamic perspective is necessary to conduct research analyzing corporate governance in Islamic banks. Design/methodology/approach: The authors followed a critical review discussion; this method takes into consideration presenting important theories and comparing those theories with Islamic perspective. Findings: The authors presented important arguments on the difference between ordinary theories to explaining corporate governance and Islamic perspective.The paper browsed into whether the Shariah Supervisory Board is a fit with the agency theory by explaining the agency theory and how it differs from the Islamic banking concepts.The paper involved an analytical review on stakeholder theory and presented a critique and the rationale as to why there is ample room for the Shariah Supervisory Board to be considered a fit with the stakeholder theory, as the Shariah Supervisory Board is an independent body influencing the firm.Originality/value: The paper is of important value to those conducting research in the area of governance in Islamic banks; they may find it beneficial in terms of underlining theory building their research framework.
Item Type: | Article |
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Uncontrolled Keywords: | Corporate governance; Islamic banks; Islamic perspective; Performance; Shariah supervisory board (SSB) |
Subjects: | H Social Sciences > HG Finance |
Divisions: | School of Economics, Finance & Banking |
Depositing User: | Dr. Sulaiman Abdullah Saif Mohammed |
Date Deposited: | 08 May 2017 00:54 |
Last Modified: | 08 May 2017 00:54 |
URI: | https://repo.uum.edu.my/id/eprint/21986 |
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