Access the full text.
Sign up today, get DeepDyve free for 14 days.
Sabur Mollah, M. Hassan, O. Farooque, Mobarek Asma (2016)
The governance, risk-taking, and performance of Islamic banksJournal of Financial Services Research, 51
Douglas Evanoff, P. Israilevich (1991)
Regional differences in bank efficiency and technologyThe Annals of Regional Science, 25
Sabur Mollah, M. Zaman (2015)
Shari’Ah Supervision, Corporate Governance and Performance: Conventional vs. Islamic BanksCorporate Governance: Governance of Special Types of Firms eJournal
E. Mamatzakis, X. Zhang, C. Wang (2017)
How the corporate governance mechanisms affect bank risk-taking?
Internal Corporate Governance, and the Performance of Publicly-Traded US Bank Holding Companies
Renée Adams, Hamid Mehran (2010)
Bank Board Structure and Performance : Evidence for Large Bank Holding Companies
Simon Archer, Rifaat Karim, Talla Al-Deehani (1998)
Financial Contracting, Governance Structures and the Accounting Regulation of Islamic Banks: An Analysis in Terms of Agency Theory and Transaction Cost EconomicsJournal of Management and Governance, 2
F. Sufian, Fakarudin Kamarudin, N. Noor (2014)
Revenue Efficiency and Returns to Scale in Islamic Banks: Empirical Evidence from MalaysiaJournal of Economic Cooperation and Development, 35
Amina Buallay (2019)
Corporate governance, Sharia’ah governance and performanceInternational Journal of Islamic and Middle Eastern Finance and Management
Elyas Elyasiani, Ling Zhang (2015)
Bank Holding Company Performance, Risk and "Busy" Board of DirectorsJournal of Banking and Finance, 60
René Stulz (2010)
Financial Valuation and Risk Management Working Paper No . 603 Bank CEO Incentives and the Credit Crisis
Yizhe Dong, C. Girardone, Jing-Ming Kuo (2016)
Governance, Efficiency and Risk Taking in Chinese BankingMicroeconomics: Decision-Making under Risk & Uncertainty eJournal
Yun Luo, S. Tanna, G. Vita (2016)
Financial openness, risk and bank efficiency: Cross-country evidenceJournal of Financial Stability, 24
P. Bauer, Allen Berger, Gary Ferrier, D. Humphrey (1998)
Consistency Conditions for Regulatory Analysis of Financial Institutions: A Comparison of Frontier Efficiency MethodsBanking & Financial Institutions eJournal
M. Arellano, O. Bover (1995)
Another look at the instrumental variable estimation of error-components modelsJournal of Econometrics, 68
Michael Jensen, W. Meckling (1976)
Harvard Business School; SSRN; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Accounting & Control UnitLSN: Law & Finance: Empirical (Topic)
R. Grassa, Hamadi Matoussi (2014)
Corporate governance of Islamic banks: A comparative study between GCC and Southeast Asia countriesInternational Journal of Islamic and Middle Eastern Finance and Management, 7
M. Kolsi, R. Grassa (2017)
Did corporate governance mechanisms affect earnings management? Further evidence from GCC Islamic banksInternational Journal of Islamic and Middle Eastern Finance and Management, 10
Hana Ajili, A. Bouri (2018)
Corporate governance quality of Islamic banks: measurement and effect on financial performanceInternational Journal of Islamic and Middle Eastern Finance and Management
Samir Srairi (2015)
Corporate Governance Disclosure Practices and Performance of Islamic Banks in GCC Countries, 4
(1996)
A guide to DEAP version 2.1: a data envelopment analysis (computer) program
Sean Harkin, D. Mare, J. Crook (2020)
Independence in bank governance structure: Empirical evidence of effects on bank risk and performanceResearch in International Business and Finance, 52
Khawla Bourkhis, Abdelwahed Omri (2016)
Ownership Concentration, Risk and Performance: Comparison between MENA Islamic and Conventional Banks, 2
Allen Berger, Thomas Kick, K. Schaeck (2014)
Executive Board Composition and Bank Risk Taking
Applied Economics, 50
Chen-Shan Chang, Shang-Wu Yu, Cheng-Huang Hung (2015)
Firm risk and performance: the role of corporate governanceReview of Managerial Science, 9
M. Delis, Georgios Kouretas (2011)
Interest rates and bank risk-takingFuel and Energy Abstracts
Journal of Econometrics, 87
Journal of Financial Economics, 3
Journal of Financial Economics, 93
Samir Srairi, Imen Kouki (2012)
Efficiency and Stock Market Performance of Islamic Banks in GCC CountriesISRA International Journal of Islamic Finance
G. Zeineb, Sami Mensi (2018)
Corporate governance, risk and efficiency: evidence from GCC Islamic banksManagerial Finance, 44
David Erkens, Mingyi Hung, Pedro Matos (2012)
Corporate Governance in the 2007-2008 Financial Crisis: Evidence from Financial Institutions WorldwideCGN: Effects on Corporate Governance in Financial & Economic Crises (Topic)
Ruhul Salim, A. Arjomandi, J. Seufert (2016)
Does corporate governance affect Australian banks' performance?Journal of International Financial Markets, Institutions and Money, 43
Pietro Calice (2014)
Predicting Bank Insolvency in the Middle East and North AfricaRisk Management eJournal
R. Blundell, Stephen Bond (1998)
Initial Conditions and Moment Restrictions in Dynamic Panel Data Models
Nur Amin, Noraini Ariffin, A. Fatima (2021)
Shariah Disclosure Practices in Malaysian Islamic Banks using the Shariah Disclosure Index, 4
(2007)
Disclosures to promote transparency and market discipline for institutions offering Islamic financial services institutions and Islamic mutual funds
B. Baltagi, P. Wu (1999)
UNEQUALLY SPACED PANEL DATA REGRESSIONS WITH AR(1) DISTURBANCESEconometric Theory, 15
The British Accounting Review, 49
M. Hassan (2012)
A disclosure index to measure the extent of corporate governance reporting by UAE listed corporationsJournal of Financial Reporting and Accounting, 10
J. Armour, Dan Awrey, P. Davies, L. Enriques, Jeffrey Gordon, C. Mayer, J. Payne (2016)
Bank GovernanceRegulation of Financial Institutions eJournal
Andrey Zagorchev, Lei Gao (2015)
Corporate governance and performance of financial institutionsJournal of Economics and Business, 82
A. Ellul, Vijay Yerramilli (2013)
Stronger Risk Controls, Lower Risk: Evidence from U.S. Bank Holding Companies: Stronger Risk Controls, Lower RiskJournal of Finance, 68
Marcia Cornett, Jamie McNutt, H. Tehranian (2009)
The Financial Crisis, Internal Corporate Governance, and the Performance of Publicly-Traded U.S. Bank Holding CompaniesS&P Global Market Intelligence Research Paper Series
G. Caprio, L. Laeven, Ross Levine (2003)
Governance and Bank ValuationLaw
Muhammad Adnan, Sheila Htay, Hafiz Rashid, A. Meera (2011)
A PANEL DATA ANALYSIS ON THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE AND BANK EFFICIENCY
M.K. Hassan, S. Mollah (2012)
Corporate governance, risk-taking and firm performance of islamic banks during global financial crisis
S. Tanna, Fotios Pasiouras, M. Nnadi (2008)
The Effect of Board Size and Composition on the Efficiency of UK BanksInternational Journal of the Economics of Business, 18
Gregory Sierra, E. Talmor, James Wallace (2006)
An Examination of Multiple Governance Forces within Bank Holding CompaniesJournal of Financial Services Research, 29
Syajarul Amin, S. Mohamad, M. Shah (2017)
Do cost efficiency affects liquidity risk in banking? Evidence from selected OIC countries, 51
H. Ghassan, Zakaria Boulanouar, K. Hassan (2021)
Revisiting Banking Stability Using a New Panel Cointegration TestInternational Journal of Financial Studies, 9
H. Al-Malkawi, Rekha Pillai, M. Bhatti (2014)
Corporate governance practices in emerging markets: The case of GCC countriesEconomic Modelling, 38
Wei-Kang Wang, Wen‐Min Lu, Yi-Ling Lin (2012)
Does corporate governance play an important role in BHC performance? Evidence from the U.S.Economic Modelling, 29
Rich Fortin, Gerson Goldberg, G. Roth (2010)
Bank Risk Taking at the Onset of the Current Banking CrisisIO: Empirical Studies of Firms & Markets eJournal
Emna Mnif, Anis Jarboui (2021)
ISLAMIC, GREEN, AND CONVENTIONAL CRYPTOCURRENCY MARKET EFFICIENCY DURING THE COVID-19 PANDEMICJournal of Islamic Monetary Economics and Finance, 7
Abhishek Srivastav, Jens Hagendorff (2016)
Corporate Governance and Bank Risk‐TakingGovernance
Imran Khan, S. Zahid (2020)
The impact of Shari’ah and corporate governance on Islamic banks performance: evidence from AsiaInternational Journal of Islamic and Middle Eastern Finance and Management, 13
Samir Srairi (2013)
Ownership structure and risk-taking behaviour in conventional and Islamic banks: Evidence for MENA countriesBorsa Istanbul Review, 13
Journal of Economics and Business, 50
H. Ghassan, Stefano Fachin (2016)
Time Series Analysis of Financial stability of banks: Evidence from Saudi ArabiaReview of Financial Economics, 31
Mamiza Haq, R. Heaney (2012)
Factors Determining European Bank RiskRisk Management eJournal
(2016)
The influence of the sharia supervisory board on bank risk-taking: evidence of Islamic banks in GCC countries
Hasanul Banna, Rabiul Alam (2021)
DOES DIGITAL FINANCIAL INCLUSION MATTER FOR BANK RISK-TAKING? EVIDENCE FROM THE DUAL-BANKING SYSTEMJournal of Islamic Monetary Economics and Finance, 7
N. Avkiran (2001)
INVESTIGATING TECHNICAL AND SCALE EFFICIENCIES OF AUSTRALIAN UNIVERSITIES THROUGH DATA ENVELOPMENT ANALYSISSocio-economic Planning Sciences, 35
Journal of Financial Economics, 99
Shams Pathan (2009)
Strong Boards, CEO Power and Bank Risk-TakingPolitical Economy: Comparative Political Economy eJournal
Journal of Financial Intermediation, 16
R. Abadi, F. Silva (2020)
Do Islamic fundamental weighted indices outperform their conventional counterparts? An empirical investigation during the crises in the MENA regionEurasian Economic Review, 12
Journal of Corporate Finance, 18
Pejman Abedifar, P. Molyneux, Amine Tarazi (2012)
Risk in Islamic BankingReview of Finance, 17
Mahir Alman (2012)
Shari'ah Supervisory Board Composition Effects On Islamic Banks' Risk-Taking Behavior
Dennis Olson, Taisier Zoubi (2008)
Using accounting ratios to distinguish between Islamic and conventional banks in the GCC regionThe International Journal of Accounting, 43
(2009)
Factors influencing the profitability of conventional banks and Islamic banks in GCC countries
Saif Ullah (2020)
Role of Corporate Governance in Bank’s Efficiency in PakistanStudies in Business and Economics, 15
The motivation of the study is to shed further light on the question of whether the governance structure of Islamic banks (IBs) has an impact on the efficiency and risk of Islamic banks operating in the Gulf Cooperation Council (GCC) after the global financial crisis and during the period 2010–2018. This study aims to examine the extent of governance structure on the efficiency and risk of IBs as the effect of the financial crisis has been less on IBs. In addition, the authors are interested in the GCC region as it represents the hub of Islamic finance.Design/methodology/approachIn this study, the authors examine how the banking governance structure affects the risk-taking and performance of IBs in the GCC countries between 2010 and 2018. The authors construct a banking governance index (CGI) composed of sub-indices for the board structure, risk management, transparency and disclosure, audit committee, Sharia supervisory board and investment account holders. Unlike the majority of previous studies, bank performance is measured with technical efficiency scores using a data envelopment analysis and the authors use a comprehensive CGI.FindingsThe results show that IBs in GCC countries adhere to 54% of the attributes covered in the CGI. The authors also note a lack of disclosure regarding the investment account holders and the audit committee. As well, the results indicate that bank governance is positively associated with risk-taking and bank efficiency. Banking risk is influenced by the Sharia board and risk management while bank efficiency is affected by the characteristics of the board structure and investment account holders.Originality/valueTo the best of the authors’ knowledge, this is the first study that has developed a comprehensive governance index for IBs in GCC countries that includes a wide range of governance dimensions. The study contributes to the literature on governance in the banking sector by simultaneously examining its impact on the risk-taking and efficiency of IBs and recognizes the dynamic relation between these three variables for IB.
International Journal of Islamic and Middle Eastern Finance and Management – Emerald Publishing
Published: May 6, 2022
Keywords: Bank governance; Bank risk; Efficiency; Sharia board; Islamic banks; GCC countries; C23; G21; G3
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.