Does digitalization affect shariah supervisory board efficiency? Evidence from Islamic banks
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 26 February 2024
Abstract
Purpose
This study aims to examine how digitalization affects the work efficiency of the Shariah Supervisory Board (SSB) in Islamic banks.
Design/methodology/approach
This study uses panel data analysis of annual report disclosures over the past 10 years. The authors have selected 79 Islamic banks for the period ranging from 2012 to 2021. The criteria for SSB efficiency used in this research are disclosure of Zakat and disclosure in the SSB report.
Findings
The econometric results show that digitalization has a positive effect on improving the work efficiency of the SSB in Islamic banks. Accordingly, the authors provide evidence that the higher the bank's digital engagement, the higher the quality of the SSB.
Originality/value
The findings highlight the need to improve the current understanding of SSB structures and governance mechanisms that can better assist Islamic banks in engaging in effective compliance with recent governance and accounting reforms. Moreover, Islamic banks are the most capable and appropriate to implement and activate digitalization because they are based on a vital root calling for development if there are executives believing in it, as well as legislation supporting and serving them.
Keywords
Citation
Cherni, S. and Ben Amar, A. (2024), "Does digitalization affect shariah supervisory board efficiency? Evidence from Islamic banks", Journal of Islamic Accounting and Business Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIABR-03-2023-0077
Publisher
:Emerald Publishing Limited
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