Mode of Islamic Bank Financing: Does Effectiveness of Shariah Supervisory Board Matter?

Aust. J. Basic & Appl. Sci., 9(37): 458, 2015

6 Pages Posted: 25 Apr 2016 Last revised: 17 Aug 2016

See all articles by Waeibrorheem Waemustafa

Waeibrorheem Waemustafa

Universiti Utara Malaysia

Azrul Abdullah

Universiti Teknologi MARA; Fakultas Vokasi

Date Written: December 10, 2015

Abstract

This paper examines the relationships between the effectiveness of Shariah supervisory board (SSB), their remuneration and mode of financing Islamic bank. The SSB effectiveness is evaluated by an index based on 9 attributes score. This study comprises 18 Islamic banks in which operating in Malaysia from the year 2012 to 2013 as a sample. Our regression analysis shows that the effectiveness of SSB does not concern with the mode of Islamic bank financing. However, we found that SSB remuneration and bank’s financial growth shown a positive and significant relationship with mode of financing. The implications of these findings are discussed.

Keywords: Shariah Supervisory Board, Mode of Financing, Islamic Bank

Suggested Citation

Waemustafa, Waeibrorheem and Abdullah, Azrul, Mode of Islamic Bank Financing: Does Effectiveness of Shariah Supervisory Board Matter? (December 10, 2015). Aust. J. Basic & Appl. Sci., 9(37): 458, 2015, Available at SSRN: https://ssrn.com/abstract=2769667 or http://dx.doi.org/10.2139/ssrn.2769667

Waeibrorheem Waemustafa (Contact Author)

Universiti Utara Malaysia ( email )

Sintok
COLGIS, UUM
Sintok, KY KEDAH DARUL 06010
Malaysia

Azrul Abdullah

Universiti Teknologi MARA ( email )

Universiti Teknologi MARA
Perlis Branch, Arau Campus
Arau, Perlis 02600
Malaysia

Fakultas Vokasi ( email )

Universitas Airlangga, Surabaya, Indonesia
waqar.ahmed.m-2018@feb.unair.ac.id
surabaya, AK jawa timur 60115
Indonesia

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