BOARD DIVERSITY AND FINANCIAL PERFORMANCE OF ISLAMIC BANKS IN MALAYSIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2021, Vol 2, Issue 4
Abstract
Corporate governance of Islamic Banks (IBs) presents entirely unique and different complexities compared to conventional counterparts. Despite these complexities and some reported cases of financial scandals involving the IBs, studies of the corporate governance of the IBs are still lacking. This paper examines the board aspect of Islamic banks. The study specifically examined the impact of board diversity and financial performance IBs in Malaysia. The sample of the study comprised of the 16 IBs operating in Malaysia over six (6) years from 2015 to 2020. Data was analysed with regression method of data analysis. The study also utilises t-test and perform robustness test for the predictor variables. The overall finding revealed that, diversity in the board of the IBs induces better financial performance. Additionally, the research also found gender diversity and board directorships attributes of the board’s positive and significantly linked with the financial performance of the IBs. Considering the result of the study we argue that more diverse board could not only guarantee proper monitoring and resource provision, but could also improve the independence of the board in its role as the trustee of shareholders, especially in complex institutions like IBs. By having a well inclusive board, IBs will benefit equally from valuable abilities across demographic, ethnic and religious groups in the society. Furthermore, by ensuring very well inclusive boards, IBs can effectively contribute to enhancing social welfare of various segments in the society. This is the first study best known to the authors that provides empirical evidence on the influence of gender diversity, board national, board duality and board skills and expertise among board on the financial performance of IBs. This paper could be referred to by the shareholders and other stakeholders.
Authors and Affiliations
Mustapha Usman, Isah Umar Kibiya
Keywords
Related Articles
- EP ID EP709143
- DOI -
- Views 137
- Downloads 0
TAXATION AND SOCIAL SERVICES: EVIDENCE FROM NIGERIA
This study econometrically examined taxation effect on social services in which how taxation incomes finance education services were investigated. Data were collected from FIRS bulletin and CBN statistical bulletin cove...
FAIR VALUE UNOBSERVABLE INPUTS ON THE VALUE RELEVANCE OF LISTED DEPOSIT MONEY BANKS (DMBs) IN NIGERIA
This study addressed the influence of fair value of unobservable inputs on the interrelationship between the value relevance of listed DMBs in Nigeria. The sample is comprised of ten (10) listed deposit money banks (DMB...
SYSTEMATIC RISK AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Banks in Nigeria experienced dwindling in financial performance as well as financial crisis within the period of the study. Therefore, this study examined the impact of systematic risk on financial performance of listed...
FINANCIAL PERFORMANCE OF BANKS IN SELECTED AFRICAN COUNTRIES: DOES INSTITUTIONAL QUALITY MATTER?
The importance of the banking sector to any nation's development cannot be overemphasized due to its ability to provide the loanable funds required for investment and capital formation. However, the decline in the finan...
AUDIT QUALITY, TENURE AND REAL EARNINGS MANAGEMENT OF LISTED NONFINANCIAL FIRMS IN NIGERIA
Earnings management is volatile due to its asymmetric nature by managers of non-financial firms. Yet, very few studies have examined the issues that cause this manipulation, especially in non-financial firms. This study...