Keywords
Citation
(2014), "2013 Awards for Excellence", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 7 No. 1. https://doi.org/10.1108/IMEFM-04-2014-001
Publisher
:Emerald Group Publishing Limited
2013 Awards for Excellence
Article Type: 2013 Awards for Excellence From: International Journal of Islamic and Middle Eastern Finance and Management, Volume 7, Issue 1
The following article was selected for this year's Outstanding Paper Award for International Journal of Islamic and Middle Eastern Finance and Management
"The conflicts of interest inside the Shari'a Supervisory Board"
Samy Nathan Garas
New York Institute of Technology, Manama, Bahrain
Purpose The purpose of this study was to identify the relation between the conflicts of interest in the Shari'a Supervisory Board (SSB) in the Islamic financial institutions (IFIs) and six independent variables: the SSB executive position; the SSB remuneration; the relation between the SSB members and the Board of Directors (BoDs); and the multiple memberships in Islamic funds, issuers of Islamic bonds (sukuk) and companies trading in capital markets.
Design/methodology/approach The variables are articulated in six hypotheses and tested by ordinary least-squares regression. The data were collected via a questionnaire, which was sent to the shareholders, the BoDs and the SSB members of all the IFIs in the Gulf Cooperation Council (GCC) countries.
Findings The results indicate that the SSB executive position, the relation between the SSB members and the BoDs and the membership in Islamic funds and issuers of Islamic bonds are significantly related to the conflicts of interest, whereas remuneration and membership in companies trading in capital markets have insignificant relation.
Research limitations/implications The paper does not address the impact of SSB ownership in the IFIs or the relation between the SSB and the shareholders or the impact of the corporate governance codes on the relationship between the IFIs and the SSB.
Practical implications The study recommends testing the hypotheses in other geographies to generalize the results, and measuring the impact of the SSB ownership on the conflicts of interest as well as its relation with shareholders, regulators and clients.
Social implications The paper provides practical implications to the SSB members and the BoD in the IFIs and calls for setting a maximum number of SSBs for each SSB member.
Originality/value This study contributes to the literature gap of the SSB role in the governance of IFIs. It is believed to be among the first studies to provide empirical evidence about the SSB conflicts of interest in the IFIs of the GCC region.
Keywords Board governance; Conflicts of interest; Corporate governance; Islam; Islamic financial institutions; Shari'a Supervisory Board
http://www.emeraldinsight.com/10.1108/17538391211233399
This article originally appeared in Volume 5 Number 2, 2012, International Journal of Islamic and Middle Eastern Finance and Management
The following articles were selected for this year's Highly Commended Award
"An investigation of user perceptions of Islamic banking practices in the United Kingdom"
Saeed Akbar, Syed Zulfiqar Ali Shah, Shahin Kalmadi
This article originally appeared in Volume 5 Number 4, 2012, International Journal of Islamic and Middle Eastern Finance and Management
"Islamic banking and economic growth: the Indonesian experience"
Muhamad Abduh, Mohd Azmi Omar
This article originally appeared in Volume 5 Number 1, 2012, International Journal of Islamic and Middle Eastern Finance and Management
"Information asymmetry and regulatory shortcomings in profit sharing investment accounts"
Rashid Ameer, Radiah Othman, Nurmazilah Mahzan
This article originally appeared in Volume 5 Number 4, 2012, International Journal of Islamic and Middle Eastern Finance and Management
Outstanding Reviewers
Dr Nafis Alam
Prof. Wafica Ali Ghoul