Access the full text.
Sign up today, get DeepDyve free for 14 days.
J. Solomon (2004)
Corporate Governance and Accountability
Wafik Grais, Matteo Pellegrini (2006)
Corporate Governance and Shariah Compliance in Institutions Offering Islamic Financial ServicesBanking & Financial Institutions
M. Khan, M. Bhatti (2008)
Development in Islamic banking: a financial risk‐allocation approachThe Journal of Risk Finance, 9
Diaa AlFarra (2015)
Islamic Banking and Finance
A. Dusuki (2008)
Understanding the objectives of Islamic banking: a survey of stakeholders' perspectivesInternational Journal of Islamic and Middle Eastern Finance and Management, 1
M. Saunders, P. Lewis, A. Thornhill (2006)
Research Methods for Business Students
Racha Ghayad (2008)
Corporate governance and the global performance of Islamic banksHumanomics, 24
Wafik Grais, Matteo Pellegrini (2006)
Corporate Governance in Institutions Offering Islamic Financial Services: Issues and OptionsIO: Firm Structure
Simon Archer, Rifaat Karim, V. Sundararajan (2010)
Supervisory, regulatory, and capital adequacy implications of profit‐sharing investment accounts in Islamic financeJournal of Islamic Accounting and Business Research, 1
J. Plessis, J. Mcconvill, M. Bagaric (2005)
Principles of Contemporary Corporate Governance
Rifaat Karim (2001)
International accounting harmonization, banking regulation, and Islamic banks☆The International Journal of Accounting, 36
A. Dignam, Michael Galanis (2009)
The Globalization of Corporate GovernanceCorporate Governance & Economics eJournal
Maria Bhatti, M. Bhatti (2010)
Toward Understanding Islamic Corporate Governance Issues in Islamic FinanceAsian Politics & Policy, 2
Wafik Grais, Matteo Pellegrini (2006)
Corporate Governance and Stakeholders' Financial Interests in Institutions Offering Islamic Financial ServicesMutual Funds
Purpose – It has been observed that the practices of corporate governance in Islamic financial institutions (IFIs) do not sufficiently address the rights of unrestricted investment account holders (UIAHs). Given that such account holders are generally the ones who bear the risk of the performance of the investment pool, the purpose of this paper is to investigate the relationship between corporate governance practice and the safeguarding of the interests of UIAHs as major stakeholders. Design/methodology/approach – A qualitative research methodology is applied to a sample of 16 managers from 12 Islamic financial institutions from Kuwait, Bahrain, UAE and Malaysia. A theoretical model built around the GC principles featured in the King report underpins the research design. Findings – The findings reveal that the current practices implemented by IFIs in protecting the rights of UIAHs are not effective enough, in the light of standard corporate governance principles. It was also found that lack of responsibility, accountability and independence in decision making, as corporate governance principles, is contributing to the ineffectiveness of current practices in the investigated IFIs. Research limitations/implications – The major limitation of the research is the small size of the sample used. Hence, the work reported here must be considered as exploratory and a further study employing a larger sample is recommended as future research. Practical implications – A number of recommendations for corporate governance practice in IFIs aimed at the unique relationship between IFIs and UIAHs are put forward. Originality/value – The originality and the value of this paper rest on its topic which, to the best of the researchers' knowledge, has not been investigated empirically before. Hence, the authors believe it will be of value not only to academics but mostly to practitioners in IFIs.
Corporate Governance – Emerald Publishing
Published: Feb 15, 2013
Keywords: Kuwait; Bahrain; United Arab Emirates; Malaysia; Financial institutions; Islam; Corporate governance; Investments; Islamic financial institutions; Effectiveness; Protecting; Maximizing
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.