Shari'Ah Supervisory Board Characteristics Effects on Islamic Banks' Performance: Evidence from Malaysia

15 Pages Posted: 5 Jun 2020

See all articles by Naji Mansour Nomran

Naji Mansour Nomran

Thamar University

Razali Haron

International Islamic University of Malaysia (IIUM) - Faculty of Economic and Management Sciences

Rusni Hassan

International Islamic University of Malaysia (IIUM)

Date Written: August 1, 2016

Abstract

The performance of Shari‟ah supervisory board continues to be a matter of concern especially for Islamic banks across countries that have a different regulatory environment. This study aims to examine the effects of Shari‟ah supervisory board characteristics on Islamic banks‟ performance using a sample of 15 Malaysian banks for the period from 2008 to 2015. Seven Shari‟ah supervisory board characteristics were employed as explanatory variables which are the board size, cross-membership, doctoral qualification, reputation, experience, total change in the SSB composition and remuneration. By employing random-effects GLS and GMM method for a robustness check, it was found that five out of the seven explanatory variables have significant relationships with Islamic banks‟ performance. These factors are SSB Size, SSB doctoral qualification, SSB reputation, total change in the SSB composition and SSB remuneration.

Keywords: Shari’ah supervisory board, Shari’ah governance, Islamic banks, Performance, Malaysia.

Suggested Citation

Nomran, Naji Mansour and Haron, Razali and Hassan, Rusni, Shari'Ah Supervisory Board Characteristics Effects on Islamic Banks' Performance: Evidence from Malaysia (August 1, 2016). Available at SSRN: https://ssrn.com/abstract=3598723 or http://dx.doi.org/10.2139/ssrn.3598723

Naji Mansour Nomran (Contact Author)

Thamar University ( email )

P.O.Box 87246
Thamar
Yemen

Razali Haron

International Islamic University of Malaysia (IIUM) - Faculty of Economic and Management Sciences ( email )

P.O. Box 10
Kuala Lumpur, 53100
Malaysia

Rusni Hassan

International Islamic University of Malaysia (IIUM) ( email )

P.O. Box 10
Jalan Gombak
Kuala Lumpur, selangor 50728
Malaysia

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