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Type :thesis
Subject :HD Industries. Land use. Labor
Main Author :Mohd Danial Afiq Khamar Tazilah
Title :Relationship between Shariah governance disclosures and Islamic Financial Institutions performance in Malaysia
Place of Production :Tanjong Malim
Publisher :Fakulti Pengurusan dan Ekonomi
Year of Publication :2022
Corporate Name :Universiti Pendidikan Sultan Idris
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Abstract : Universiti Pendidikan Sultan Idris
Shariah governance framework has been established by the Bank Negara of Malaysia (BNM) to ensure an effective Shariah governance among the Islamic Financial Institutions in Malaysia. Nevertheless, since its implementation in 2010 the financial performance of the institutions is in doubt due to financial crisis and fraudulent acts that have been triggered worldwide. Hence, the confidence level of the shareholders and stakeholders towards the institutions is at stake. In addition, due to the lack of understanding of the Shariah governance requirements and unclear roles among the shareholders shall lead to poor disclosure and Shariah non-compliant issues. Therefore, this study is to identify the level of disclosure of Shariah governance characteristics, examine the relationship between Board characteristics (Board size and Non-executive directors) and the Shariah governance characteristics and disclosures (Shariah committee, Shariah committee report, Shariah board meeting, Shariah audit, Shariah review, and Shariah risk management) towards Islamic financial institutions performance using return on assets and return on equity. There are 16 Islamic banks listed in the BNM and these banks are chosen as a sample for this study for 10 consecutive years from 2010 to 2019 by reviewing the banks’ annual reports. It is a longitudinal study looking at events during and after the implementation of the Shariah Governance Framework from 2010 onwards and the results of finding are being analysed using E-view software 10.0 version. Findings were found that the size of the Shariah committee, Shariah committee report, Shariah committee meeting, Shariah risk management, Board size, and non-executive directors are significantly associated with firm performance. This study shall give impacts on the policymakers such as the government and BNM, the functions of the board and committees of the banks, and theoretically on the additional literature review to ensure the Shariah governance disclosure can be further strengthened.

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